Raymond earmarks Rs 250-300m for accessories biz

Textiles maker and retailer Raymond plans to invest Rs 250 million to Rs 300 million in FY12 to expand its accessories business and add sunglasses to its range, Gautam Singhania, chairman and managing director, said on Friday.

"We already have accessories like deoderants, perfumes and belts and now we are planning to add a few more products including sunglasses to the range," he told reporters. The company, which sells apparel brands such as Manzoni, Park Avenue, Parx and ColorPlus, had revenues of Rs 8 billion from its apparel division in 2009/10. Raymond expects revenue of its biggest brand, Park Avenue, to grow 30% year-on-year. "Park Avenue is a Rs 5-billion  brand and we expect sales from this to grow at least 30% in FY12," Singhania said. The company is also planning to launch additional branded outlets for Park Avenue in the next financial year. Singhania said the firm plans to open 100 new retail stores under the brand Raymond in FY12. "We have about 700 retail stores and the Raymond retail stores are set up on franchise models. Hence there won't be much capital investment for the new stores," he said. Singhania said the firm has no choice but to take a price hike to pass on the sharp surge in cotton prices. Last month, a senior executive had told Reuters Raymond planned to raise prices by 5-10% next quarter to offset cost push. Raymond shares closed up 2.92% at 328.05 rupees in a firm Mumbai market.