Business Standard:

Apparel and textile major Raymond today said it would open 300 franchisee-operated stores in Tier-IV and Tier-V towns in the next 18 months, to tap the retail opportunity in the country’s hinterland. The company is looking at towns with less than 500,000 population for the expansion.

It plans to add 450,000 sq ft of retail space — this is an addition of half its present total — by the end of 2010-11. And expects revenues of Rs 200 crore from the newly set up stores in that period, a top company official said.

Raymond and its franchisees will invest around Rs 100 crore in setting up the stores, said Gautam Hari Singhania, chairman and managing director. The company is looking to open stores in towns such as Pandarpur in Maharashtra and Bijapur and Mandya in Karnataka, among others.

Raymond now has 630 stores, including 500 of ‘The Raymond Shop’ stores, and that of Color Plus, Park Avenue and Zapp!, among others. Retailing provides it nearly 40 per cent of overall revenues. The company posted revenues of Rs 2,586 crore in 2008-09, with a net loss of Rs 231 crore, mainly due to forex losses and losses incurred in subsidiaries.

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