A

PROJECT REPORT
ON

“RAYMOND”

1. Industry Profile
Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to the
country's gross domestic product (GDP) and 16.63 per cent to export earnings. Nearly 40 per
cent of the textiles produced in the country is exported and the textiles sector is the biggest
employment generator after agriculture. The sector is expected to generate 12 million new
jobs by 2010. The sector targets US$ 6 billion foreign direct investment (FDI) by 2015 to be
invested in green field units in textiles machinery, fabric and garment manufacturing, as well
as technical textiles.
India has made inroads into the markets of its key competitors which include Asian countries
such as Sri Lanka, Bangladesh, Vietnam and Cambodia. The Indian textile and apparel
industry is taking a new course by entering the Chinese market. Most of the top global
apparel retailers, such as JC Penny, Nautica, Docker and Target, have their sourcing network
in India. Indian textiles and apparel exports, which is worth US$ 22 billion, is expected to
register a four-fold increase to touch US$ 90 to 100 billion in the next 25 years.
2.Company Profile
The Raymond Group was incorporated in 1925 and within a span of a few years, transformed
from being an Indian textile major to a global conglomerate. The company always choose the
path untaken - from being the first in 1959 to introduce a polywool blend in India to creating
the world's finest suiting fabric the Super 240s made from the superfine 11.6 micron wool.
The Raymond group is vertically and horizontally integrated to provide customers total
textile solutions. Few companies globally have such a diverse product range of nearly 20,000
varieties of worsted suiting to cater to customers across age groups, occasions and styles. The
company manufactures the world the finest fabrics - from wool to wool-blended worsted
suiting to specialty ring denims as well as high value shirting.
After making a mark in textiles, Raymond forayed into garmenting through highly successful
ventures like Silver Spark Apparel Ltd. and Regency Texteis Portuguesa Lda (for fine
Tailored Suits, Trousers and Jackets), Ever Blue Apparel Ltd. (Jeanswear) and Celebrations
Apparel Ltd. (Shirts).The company have some of the most highly respected apparel brands in
its portfolio: Raymond, Raymond Finely Crafted Garments, Manzoni, Park Avenue,
ColorPlus, Parx, Zapp! And Notting Hill.
The Raymond Group also has an expansive retail presence established through the exclusive
chain of 'The Raymond Shop' and stand-alone brand stores for Raymond Finely Crafted
Garments, Manzoni, Park Avenue, ColorPlus, Parx, Zapp! and Notting Hill. With a US$600
million turnover the company became one of the largest players in fabrics, designer wear,
denim, cosmetics & toiletries, engineering files & tools, prophylactics and air charter services
in national and international markets.
3.ABOUT RAYMOND GROUP
Fully integrated across the value chain
4.Moving up the value chain – One stop Shop

4 .1 Fabric
4.2 Garmenting

4.1 Fabric

4.1 (a) Worsted Suiting

Raymond, with an installed capacity of 42 million meters of wool & wool-blended fabrics, is
the leading integrated producer of worsted suiting fabric in the world. It has four plants
located in the states of Maharashtra, Gujarat and Madhya Pradesh. The company exports its
suiting fabric to more than 50 countries including USA, Canada, Europe, Japan and the
Middle East.

Raymond, an innovator in the Indian textile industry, has developed a heritage of in-house
skills for research & development. This has resulted in path-breaking developments of new
products, which are today the corner stones of the worsted suiting industry in India. The
Group has mastered the craft of producing suiting using, wool from Super 80s to Super 240s
and spinning count as fine as 2/160 Nm. These are blended with superfine polyester and
other specialty fibers, like Cashmere, Angora, Alpaca, Silk, Linen etc.
FABRC

4.1 (b) Denim

Raymond has entered into a 50:50 JV with UCO NV of Belgium, a leading manufacturer of
specialty denim to form a global denim company that combines the denim businesses of
Raymond and UCO. The JV Company, Raymond UCO Denim, having it’s company
executive headquarters in Belgium, is manufacturing and marketing, specialty denim fabrics.
The JV has a combined capacity of 80 million meters, per annum, with manufacturing
facilities spread across three continents – the US, Europe and Asia, as well as a vast global
marketing network.

4.1 (c)Shirting

Raymond in partnership with Gruppo Zambaiti, one of the top three Italian high fashion
cotton textile majors in the world, has set up a Greenfield facility for the manufacture
of fine cotton shirting fabric. The joint venture company, Raymond Zambaiti Ltd, combines
Raymond’s expertise in textile business, low cost production, technology and
distribution with Italian strengths of creativity, style, production know-how, quality finishing
and lead times.
FABRIC
The product range includes a wide range of fabrics and finishing, including, cotton apparel
fabrics and high-end cotton suiting fabric, produced at the newly set up state-of-the-art
vertically integrated plant in India.This facility caters to the international markets at the
middle to the upper end brands and offers custom designed shirting products to the discerning
international customers, which includes leading brands and retailers.

4.2 GARMENTING
4.2(a)Tailored Clothing
Situated 40 kms from Bangalore is Silverspark, it facility that turns out world class, suits,
jackets and trousers. This modern plant spread over 200,000 sq ft built up area has the
capacity to produce 800,000 tailored menswear jackets and 2.0 million tailored menswear
trousers annually, a significant addition to our existing capacities at Thane near Mumbai

Set up at an investment of US$ 10 million this plant boasts of modern manufacturing

facilities on par with the best on the world. ‘Siro Set’ is another specialty that the plant has to
offer. The factory is equipped with computerized
presses in line and drying chambers to ensure consistency in the product. This technology
developed and perfected in Japan is designed to impart a permanent finish to jacket seams
and tailored crease on trousers made from pure wool fabrics. The combination of world-class
machines and work environment maximize productivity, quality and worker safety. With
additional investment of USD 10 million on the second plant the capacity will further
enhance
by 600,000 tailored menswear jackets and 600,000 tailored menswear trousers annually.

4.2(b) Jeanswear
A forward integration to Raymond’s specialty Denim plant is EverBlue, a top of the line
manufacturing facility for jeanswear, near Bangalore. This facility has a capacity to turn out 3
million garments per annum with integrated garment design, sewing and washing operations.
The plant boasts a high degree of automation right from computerized Gerber spreader and
cutter to laser patterning and finishing.
The stitching facility incorporates several automatic sewing workstations for consistency of
work execution, sate of the art over locking and zipper attachments. The finishing unit
consists of scraping spray booths, sand blasting and laser patterning to create special effects
on jeans wear. An in house CPC controlled laundry is the best such facility in India for
washing and dyeing obtained from Europe. This ensures a wide variety of finishes to meet
global tastes. Manufacturing is supported by an in house design studio and sample unit to
create new styles and samples. Dedicated sample washing machines ensure quick
turnaround of samples.

4.2(c) Dress Shirts

A spanking new unit – Celebrations has been set up in the technical collaboration with Flex,
one of the largest dress shirt manufacturers in Japan. With 100,000 sq ft of built up space, it
incorporates the latest factory design principles for employee comfort and productivity. The
current production capacity is 1.80 million shirts per year. Specialized machinery imported
from renowned manufacturers in from USA, Germany and Japan comprise of automated
spreading and cutting with an inbuilt system for matching checks and stripes.

The layout of the manufacturing line has

sufficient flexibility to adapt to smaller runs and
style changes. This flexibility permits
manufacture of both fused and non-fused collars
and cuffs as per customer requirements. Shirts
made in this plant have been well appreciated by
many as being on par with the best in the world.

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5.Join Venture
The Raymond Group today is poised to become a global player, integrated across various
categories like worsted suiting, denim, shirting etc. The Group has achieved this through
partnerships with companies that are the best in the world in their business. Raymond has
entered into a JV with Gruppo Zambaiti, Italy’s leading manufacturer of shirting fabric. Our
JV with UCO is a merger of equals that will create a global denim major with
transcontinental. manufacturing in US, Europe and Asia along with a combined capacity of
80 million metres. This JV with UCO will create synergies in sourcing, manufacturing and
marketing. Our JV have resulted in a unique combination of synergies in manufacturing,
marketing, technology, sourcing etc. and will reap tremendous mutual benefits in the years to
come.

6. Business to Business Operating System

6.1 Retail Networks
Raymond Group’s products are retailed through ‘The Raymond Shop’ (TRS) - the most
celebrated retail chain of its kind in the Indian sub-continent. The Raymond distribution
network comprises of more than 20,000 Multi Brand Outlets and over 400 exclusive retail
outlets in more than 170 cities which includes ‘The Raymond Shop’ which retails Raymond
Fabric and menswear brands (Park Avenue, Parx, Manzoni and ColorPlus) and exclusive
brand outlets for Park Avenue, Manzoni, Colorplus, Parx and Zapp!. The Raymond Shop also
has 31 outlets overseas in the Middle East, Sri Lanka and Bangladesh.

6.2Raw material Godown receives the following material from the supplier.
 Supplier Material
RIL- Reliance Industries TOW-PSF
Ltd. Pataganga (M.S)
Surat (Gujrat)

FRL- Futura Fibers Chennai TOW-PSF-TOP

GIL- Grasim Industries Ltd Nagda (M.P.) VSF-TOP

DAL- Dewavrin Australia P. Ltd Greasy Wool

CDDL- Compagnie Importin DeLaines Greasy Wool

BEAPL- BWK Elders Australia P. Ltd Greasy Wool

RSA- Rantax S.A Curuguay Greasy Wool

NV-NVJOS Vennestex (Belgium) Greasy Wool

SNSM- Socete Novvelle Textile Maclou FLEX TOP

France and many others Suppliers

From India Greasy Wool

AAT- Azad Agro Traders Kashmir

ESL- East End Silk Ltd.(Malda)W.B Silk TOP

7.1 BRANDED FABRIC AND RETAIL- CORE FOCUS

•Very large domestic relevant market opportunity
•Raymond plans to focus & grow in smaller towns and cities

Source : National Household survey 2008, MARKET FOR TEXTILES AND

CLOTHINGS, 2008, Textile Committee, Government of India
7.2BRANDED FABRIC AND RETAIL- CORE FOCUS
7.4 BRANDED FABRIC AND RETAIL- CORE FOCUS

Source: ColorPlus internal data; TechnoPak Advisors, June 2007; CRISIL research
8. Brands
The Raymond Group has in its portfolio some of the most respected brands in India
-Raymond as well as leading menswear brands – Park Avenue, Parx, Manzoni and ColorPlus.
Recently, Raymond, the flagship brand from India’s leading textile & apparel major
Raymond Ltd. took the craftsmanship of garment making and customer convenience to new
echelons by launching ‘Raymond Finely Crafted Garments’ (FCG). Raymond entered into
the ready to wear business with the introduction of Park Avenue in 1986, catering to the
formal men’s wear market. Parx was launched in 1998 to address the growing trend of smart
casuals. Both brands have captured major market share in their respective categories due to
an inherent advantage of vertical integration and a strong retail presence. In 2000, Manzoni, a
luxury lifestyle brand was launched offering a super-premium formal range of men’s shirts,
suits, trousers, jackets, ties and leather accessories. Raymond identified the vacuum for a high
end, casual wear brand and hence decided to acquire ColorPlus as a part of strategic
expansion plan for their ready-to-wear business. In September 2007, Raymond took its
experience and creativity to a whole new audience by entering into the women’s western
wear category with two premium brands, including, ColorPlus Woman, an exclusive range of
smart casual clothing for modern, discerning women and Park Avenue Woman, a complete
range of Business Wear for women.
Raymond Finely Crafted Garments (FCG) which was recently launched offers the
customers same Raymond brand promise of ‘Trust, Excellence, Quality and Leadership’ in
an exclusive formal range of ‘classic’ apparels and accessories.
Raymond Apparel has also ventured into the kidswear segment, with its exclusive brand
‘Zapp!’ Covering the spectrum of children's lifestyle products, it includes an entire range of
children's apparel and accessories. In addition to this, Raymond Apparel has also launched
‘Notting Hill’, the new apparel brand under the popular price segment. A complete ‘value-
formoney’ men’s wear brand, Notting Hill is the perfect combination of fashion, fit, styling
and affordability. All brands from the Raymond Group portfolio are well entrenched in the
market and are sold through multi brand outlets, as well as dedicated, exclusive stores, in
India and the Middle East.
9.Peer Group Comparison
10. Government Initiative
The Government has announced the release of a subsidy of US$ 533.87 million for the textile
industry under the Technology Upgradation Fund scheme (TUFs). The government extends
10 per cent capital subsidy and 5 per cent interest subsidy on installation of machineries and
for processing machinery under the TUFS. A 41-member Working Group has also been
announced to be set up with a National Fibre Policy, to ensure self-sufficiency in fibre
consumption and export requirements in India.
The Textiles Committee has also been reconstituted in order to ensure standard quality of
textiles both for internal marketing as well as exports. The committee will also establish
laboratories and test houses for testing of textiles. In addition, an online marketing and sales
portal has also been launched by the textile minister. The e-marketing platform, developed by
the Central Cottage Industries Corporation of India and the Handicraft and Handlooms
Export Corporation of India, will host more than 1,000 wide ranging handicrafts and
handlooms products. It will also provide online services, such as e-payment facility through
major debit/credit card as well as online tracking of the shipment. Moreover, the Ministry of
Textiles is considering setting up textile parks at Vidarbha and Marathwada, the largest
cotton growing regions in Maharashtra. Currently seven textile parks are already in various
stages of completion in Maharashtra.
11.Advantage of India
India offers cheaper production and marketing costs and enormous opportunities that have
tempted Taiwanese companies to work on joint ventures with Indian companies, especially
for the manufacture of manmade fabrics. Several European textile and textile machinery
manufacturing companies have shown interest in sourcing garments from India. Textile
companies were keen to set up base in India due to the cheap labour available here. India
offers various incentives like low-cost labour and intellectual right protection to foreign
investors. The country allows 100 per cent FDI in the textiles sector.
12. SWOT Analysis

STRANGTHS
 The company has strong Research and Development dept. for product
and new technology.
 The company has many Bank facilities like long credit time and other
facilities.
 The company has qualified and experience Human Resource for selection and
recruitment.

WEEKNESSES
 The company has obsolete technology.
 The company has low production in off session.
 The company has less man power according to the work.

OPPORTUNITIES
 Large and growing market the available to the company is very large continuously
growing.
 The company has maintained growth from last many years.
 As the population increase the demand of product will increase

THEREATS
 There are many competitors in the market.
 The Indian market is the main market of the company but it is very unstable.
 There are so many other factors like environment, political and regional.
13. Raw materials

Wool:- The Merino brand of wool is imported from Australia, and supplied as Topes by
the wool scouring & Grey combing department.

Polyester: - A man made synthetic fiber which is in the form of staple fiber or tow.
There are three verities- Normal, Sparkle &Low pill.

Viscose:- A regenerated cellulosic fiber, which is made from wood pulp. Generally it is
dope dyed by suppliers and is in fibrous form.

GODOWN FOR RAW MATERIAL

Here is three section of godown for keeping raw material.
1. Raw material godown
2. Top godown
3. Waste godown.

RAW MATERIAL NORMS

 PSF – POLYESTER STAPLE FIBRE
 VSF – Viscose Staple Fiber
 TOW – Polyester Continuous Filament
 GWL – Greasy Wool
 SWL – Scoured Wool
PROCESS MATERIAL (Top is a bundle of sliver conversion of wool or Polyester TOW
is a converted Top)
 TOP-Polyester
 TOP-Wool TOP

OTHER MATERIAL:-
 FLEX TOP (Linen TOP)
 SILK TOP
 VISCOSE TOP
 LENRING MODEL TOP
 BLENDED TOP
 LENRING MODEL TOP
 ACRYLIC FIBRE
14. SALES PROCEDURE

Every year there is sales booking takes place and the booking is done for two seasons.

1)Summer booking (in the month of December)

2)Winter booking (in the month of June)

In the booking the dealers book their requirement for next season for which the booking is
being taken place. And as per their booking, Sales & Marketing Dept. prepares sale notes
quality wise, shed wise for all the dealers those are given booking for the next season. There
is a three types of Sale Notes are prepared.

1)Main Sale Notes: The same is prepared buyer wise. In this, the qualities and shed numbers
are mentioned of the dealers which are to be produced by us to fulfill the requirement in the
required delivery period under instructions given to Production & Planning Department.

2)Additional Sale Notes: The same is also prepared buyer wise and the same is issued after
completion of booking for delivery period of next two months having the qualities and shed
numbers as per requirement of the buyer.

3)Mini Sale Notes: Mini Sale Notes can be issued in favor of buyer as per their requirement
received through phone or email or their personal visit.
15. Award
Textiles

 Images Fashion Awards 2009 - Most Admired Textile Brand of the Year.
 Reader's Digest - Platinum Trusted Brand, 2008.
 Lyrca Images Fashion Awards 2008 - Most Admired Textile Brand of the Year.
 Lyrca Images Fashion Awards 2008 - Most Admired Suiting Brand of the Year.
 CNBC Consumer Award 2007 - The Best Branded Readymade Garment and Textile.

Brands

Park Avenue

 Images Fashion Awards 2009 - Most Admired Menswear Brand of the Year.
 Lyrca Images Fashion Awards 2008 - Most Innovative Lycra Brand of the Year.

J.K Files & Tools

EEPC (Engineering Export Promotion Council) India "Star Performer Award Year 2008-
2009" for the highest engineering exports in Hand Tools (Large Enterprise).

International Business

DHL & CNBC TV18 International Trade Awards 2006-07 - 'Outstanding Exporter Award' in
the engineering category.
HR

ACCOR Services - (International Leaders and India's Foremost in Employee Benefits,

Motivation and Loyalty Solutions) - Presented the "GLOBAL HR EXCELLENCE
AWARDS 2007-08" for the Outstanding Contribution to the Cause of Education at the Asia
Pacific HRM Congress.