Clarity on lockdowns need of the hour for retail segment as each state has a different policy: Gautam Singhania

A: Overall, the first quarter is going to be difficult for the entire industry. The subsequent quarter will also be subdued -- be it in textiles or FMCG. Currently, we are witnessing some traction in the FMCG segment since most companies have entered the personal hygiene space, which has a significant demand. Hence, FMCG recovery seems to be faster. However, the scenario seems challenging for the textile industry at this point since it comes under discretionary spends.

A: Textile revival will be there but we need clarity on lockdowns as states have different policies. Secondly, for the textile industry to see a revival, the retail sector has to be opened up significantly. Malls are still under lockdown. These are some of the challenges before the industry. I feel recovery is round the corner. Given the pent up-demand, we will see some traction. The forthcoming festival season will spur demand.

A: One thing is certain. We will have to evolve and find newer ways of doing business. We have to live with COVID-19. In my opinion, the economic losses caused by COVID-19 are going to hit us harder than the loss of lives. In general, most industries like airlines and tourism have been severely affected and there are colossal losses. Many companies are filing for bankruptcies and millions of job losses are being reported.

A: We are assessing the situation and taking corrective measures. We see some opportunity because of the pent-up demand and the wide product portfolio. We have a deeply entrenched retail network in over 600 cities/ towns across India. I am optimistic that Raymond is uniquely positioned to leverage its retail network strength and superior product quality.

A: Actually, the impact of the pandemic started before the lockdown, coupled with declining consumption. In April-June, wedding season sales was severely hit and export orders also got deferred.

A: We have sold a 20-acre land parcel in Thane to Virtuous Retail, and another 20 acres are being developed by us. Our project development—which is for the middle-income segment — is on track and we have been doing brisk bookings and revenue realisation has started. There is a huge demand for these kind of integrated housing projects as people have realised that they need a better place in a scenario like a lockdown. We expect the housing demand to pick up pretty soon.

A: Ethiopia is under complete lockdown and only essential production is allowed. Having said that, I am optimistic about the demand from the US. In the current environment, reports of enhanced demand for made-to-measure business revival in the US are extremely encouraging. We will start operations as per the government guidelines there and will fulfil the US demand quickly.

A: As far as Raymond is concerned, I am hugely optimistic and we believe that every crisis presents an opportunity. We have two strong businesses—FMCG and textiles. We are in a position to leverage the prevailing situation and emerge much stronger.

A: Most Raymond plants are in backward regions and we are not facing any issue of labour migration. In fact, we have set up our factories in areas where workers live. Demand is gradually coming back and we are good to start now.

A: It is a tough environment. Eventually, every company has to survive and do whatever they need to. Cost rationalisation is most crucial to businesses in the current scenario.

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