Raymond has long been synonymous to textile and apparels. It is now breathing fresh energy in the fast moving consumer goods business, through new products and overseas expansion, aiming to double revenue from the business to around Rs 1,000 crore over the next three to four years.
Reuters
Raymond operates FMCG business through its associate JK Helen Curtis, which largely includes male grooming products, including deodorants, soaps and shampoos. Revenues from the FMCG business are currently around Rs 500 crore, and Raymond's chairman and managing director Gautam Singhania says the company may look to at least double the revenue over the next 3-4 years, on the back of double-digit growth the segment is witnessing.
“In FMCG products, India has come of age. GST (Goods and Services Tax) has also simplified things. Keeping that in mind, the Raymond group decided to put a much stronger focus into our FMCG business...The same way as we are transforming the Raymond group, what has not been achieved in the last 50 years in the FMCG business, we want to achieve in less than five,” said Singhania.
As a part of plans to create a strong consolidated FMCG business, the textile maker, bought out Australian partner Ansell's stake in the joint venture company JK Ansell, which makes Kamasutra brand of deodorants and condoms, in August this year.
Buying out Ansell's stake will help JK Helen Curtis leverage Kamasutra's wider retail footprint to also expand the Park Avenue range and drive the FMCG business under one company.
“Park Avenue is already available in some format or the other across 200,000 outlets. The unified organisation gives us resources to take it much beyond. The Kamasutra business goes through another 100,000 outlets. So, there are synergies, which are on the revenue front, on the cost front, which will allow us to chase growth,” said Giriraj Bagri, president of the FMCG business.
Also on cards, is a renewed push in overseas markets, starting in regions where there is a sizeable Indian population. Bagri said, the plan was to “reignite growth” in West Asian market, and then over the next couple of months look at other neighbouring markets in Asia.
Male grooming is estimated to be around Rs 5,000 crore industry in India According to Raymond officials, Park Avenue is the second largest brand in the men's deodorant market. But, its also looking to boost its presence into other categories in the male grooming space.
In its latest annual report, the company said it would look to increase the proportion of non-deodorant products in the overall mix, which includes soaps, shampoos, talc, room freshners and cologne.
