CHAPTER – 3

INFORMATION ABOUT RAYMOND LTD.

INTRODUCTION:

Raymond, one of the most respected textile companies, has opened around 350 outlets at

prime location in India and abroad.

A 100% subsidiary of Raymond Limited, Raymond Apparel Ltd. (RAL) ranks amongst

India's largest and most respected apparel companies. We bring to our customers the best

of fabric and style through some of the country’s most prestigious brands – Raymond

Premium Apparel, Park Avenue, Parx and Notting Hill.

RAL entered into the ready-to-wear business with the introduction of Park Avenue in

1986 catering to the men's formal wear market. Parx was launched in 1998 to address the

growing trend of smart casuals. Raymond identified the vacuum for a high end, casual

wear brand and hence decided to acquire Color Plus as a part of strategic expansion plan

for their ready-to-wear business. Notting Hill was launched in 2007 to cater to the

popular price segment.

Crossing the gender divide two of our brands, Park Avenue launched the Western

Women's wear collections. 'Park Avenue Woman'- A complete range of Premium

Business Wear for women is designed specially for the working women professionals of

today.

All our brands are available at exclusive brand stores, ‘The Raymond Shop’ retail outlets

and multi-brand outlets across India and the Middle East.

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HISTORY

Years ago, when the Singhania family was building, consolidating and

expanding its various businesses in Kanpur, one Mr. Wadia was in a similar manner

setting up a small woollen mill in the area around Thane creek, 40 kms away from

Bombay. The Sassoon, a well-known industrialist family of Bombay, soon acquired this

mill and renamed it as The Raymond Woollen Mills.

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.

In our endeavor to keep nurturing quality and leadership, we 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 250s made from the superfine 11.4

micron wool.

Today, 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.

We manufacture for 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., EverBlue Apparel Ltd. (Jeans wear)

and Celebrations Apparel Ltd. (Shirts).

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We also have some of the most highly respected fabric and apparel brands in our

portfolio: Raymond, Raymond Premium Apparel, Park Avenue, ColorPlus, Parx, Makers

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.

We are today 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. All our plants are ISO certified, leveraging on cutting-edge

technology that adheres to the highest quality parameters while also being environment

friendly.

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DIFFERENT OFFERS BY THE RYMOND LTD .

1) TOTAL TEXTILE SOLUTION :

Customers today the world over, are looking at one-stop shops that can fulfill

all their needs. At Raymond, we offer fully finished products that span various

garment categories that has been made possible by a seamless horizontal and vertical

integration across divisions. Our textile solutions encompass everything - from

worsted suiting to denim and shirting.

Its not just range but volume and quality that makes us the textile major that we are

today. Our plants have a capacity of 31 million meters in producing the finest worsted

fabrics and wool blends. The blends comprise of exotic fibres like cashmere, Mohair

or Angora or blends of wool with casein and bamboo or the ultimate in fine pure wool

– Super 240s.

The denim division has a capacity of 47 million meters of specialty denims; not to

mention our capabilities in producing shirting and carded woollen fabrics. Our joint

ventures with global leaders ensure that you have access to world-class products.

Our design Studios in India and Italy are supported by six states- of- the- art textile

plants and four garmenting factories in India and Europe.

2) FABRICS :

a) WORSTED :

Raymond is the world's largest producer of worsted suiting fabrics

commanding over 60% market share in India. With a capacity of 31 million meters,

we are among the few companies in the world, fully integrated to manufacture

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worsted fabrics, wool & wool blended fabrics. We also convert these fabrics into

suits, trousers and apparels that are exported to over 55 countries in the world;

including European Union, USA, Canada, Japan and Australia amongst others.

A trendsetter and an innovator in the Indian textile market, our expertise has been

brought forth by our in-house research & development team. Their innovations have

become milestones in the worsted suiting industry.

We mastered the craft of producing the finest suiting in the world using super fine

wool count (from 80s to 240s) and blending the same with superfine polyester and

other specialty fibers, like Cashmere, Angora, Alpaca, Pure wool and Linen.

Raymond has created the world’s finest worsted suiting fabric from the finest wool

ever produced in the world – the Super 240s fabric made of 11.6-micron wool.

Today we are recognized as a pioneer in manufacturing worsted suiting in India,

producing nearly 20,000 designs and colours of suiting fabrics, which are retailed

through over 3,000 stores in over 400 towns across India.

From fabric to fine tailored clothing, Silver Spark Apparel Ltd. marks the Group's

foray into the global apparel market.

TEXTILE MANUFACTURING FACILITIES :

World-class facilities :

Raymond's manufacturing facilities include three world-class fully

integrated plants in India, deploying state-of-the-art technology modern quality

management systems like ISO 9001 and Environment Control Systems (ISO 14001).

All our plants are self-sufficient and provide staff welfare measures such as

education, housing, recreation and support systems for employee.

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Raymond plants are located in India at the following locations: Chhindwara in

Central India, Vapi in Gujarat, near Mumbai and Jalgaon in Maharashtra.

Chhindwara Plant

The Raymond Chhindwara plant, set up in 1991, is a state-of-the-art

integrated manufacturing facility located 57 kms away from Nagpur in Central India.

Built on 100 acres of land, the plant produces premium pure wool, wool blended and

polyester viscose suiting.

This plant has achieved a record production capacity of 14.65 million meters, giving

it the distinction of being the single largest integrated worsted suiting unit in the

world.

Vapi Plant

Raymond has increased its worsted suiting capacity by 14 million meters,

as part of the second developmental phase of the Vapi plant.

Modeled to meet international standards, the Vapi plant has been set up on 112 acres

of lush green land with Hi-tech machinery such as warping equipment from

Switzerland, weaving machines from Belgium, finishing machines, automatic

drawing-in and other machines from Italy.

b) DENIM :

Raymond UCO Denim is a Joint Venture between Raymond Ltd, India's

largest textile and apparel major and UCO NV of Belgium. We produce and market

specialty ring colour and stretch denim.

With a combined capacity of 47 million and manufacturing facilities across 2

continents – Europe and Asia, Raymond UCO will be in a best position to develop

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an optimal and flexible service to meet global requirements of large international

brands.

ITS FACILITIES :

Raymond UCO Denim has state of the art manufacturing facilities in

Giurgiu (Romania) and Yavatmal (India). All our facilities produce differentiated

ringspun denim, specialty denim and other niche products for the global fashion

market.

Its Joint Ventur Companies :-

Raymond UCO Denim, Yavatmal, Maharashtra, India

Capacity: 40 million meters

UCO Tesatura, Giurgiu, Romania

Capacity: 7 million meters

STATE OF THE ART USED BY DENIM :

To ensure the manufacture of products of international quality, this unit uses

state-of-the-art equipment, systems and practices. These include:

Tensorapid equipment to measure Tensile and tear strengths.

Uster testing to control the evenness of all yarns.

Each & every bale of yarn is tested and passed through a double passage draw

for effective quality blending.

Marzoli ring spinning frames and open-end spinning are equipped with auto

doffing and auto bobbin transfer systems. Together with Caipo and Amsler

devices, these systems produce creative denim yarns.

Indigo and sulphur dyeing is achieved through two-slasher dye ranges.

Suker Muller & Masters slasher dye ranges support Picanol & Vamatex high

speed looms to produce 20 million meters per annum.

The Denim Fabrics & Apparels is finished on the Cibitex range with micro

processing to stabilize shrinkage & skew. The stenter finish stabilizes

shrinkage & width of stretch products.

Routine Testing and checking at every stage of the manufacturing process.

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Shade standards and consistency are maintained via a system of wash blankets

tested from every roll of Fabrics & Apparels.

The Raymond water treatment plant purifies and recycles all indigo effluent

using reverse osmosisystem This enables the company to use all the water for

land projects. The entire 105-acre site of the Denim facility in Yavatmal has

been designated with a 'greenbelt' status

Creative denims are developed with specialist finishing, fancy yarn devices

and other equipment necessary to achieve world-class products.

The onsite laundry facility enables experimentation with creative finishing to

demonstrate the full potential of each individual denim Fabrics & Apparels.

FORWARD INTEGRATION FROM FABRIC TO JEANS WEAR :

We offer buyers of denim fabric, a state of the art jeanswear facility to

convert fabric into high fashion garments at our jeans wear facility 'EverBlue

Apparel Ltd' near Bangalore. The unit converts fabric to jeanswear supplying to

customers the world over.

c) SHIRTING :

Raymond and Cotonificio Honegger SPA, part of Gruppo Zambaiti have

joined hands in the form of a 50:50 JV to manufacture and market high value cotton

and linen shirting. Through this partnership, the textile majors have set up a

Greenfield facility in India for manufacture of high-value cotton shirting fabric.

The joint venture company, Raymond Zambaiti Ltd will combine Raymond's

expertise in textile business, low cost production, technology and distribution with

Italian strengths of creativity, style, production knowledge, quality finishing and

lead times.

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The product range will include a wide range of fabrics and finishing including

cotton apparel fabrics and high-end cotton suiting fabric produced at our newly set

up state-of-the-art vertically integrated plant in Kolhapur, India.

This facility caters to the international markets at the middle to the upper end

brands and offers custom designed shirting products to our discerning international

customers which includes leading brands and retailers.

3) APPAREL :

a) TAILORED CLOTHING :

We manufacture suits, jackets and trousers through Silver Spark Apparel

Ltd., a wholly owned subsidiary of Raymond Ltd.

To meet the growing needs of our domestic and international clients, our plant has

the capacity to produce 1.0 million suits and jackets and 2.0 million trousers

annually.

HIGH-END JACKET :

We not only produce engineered (fused) jackets but also have the

capability to produce high -end half canvas jackets. This make-up offers the complete

'tailored' with 18-20 rows of blind stitch on the lapels, guaranteeing a roll on the lapel,

which is unmatched. The jackets are hand sewn to complete the tailored look.

AT PAR WITH THE WORLD BEST :

Our manufacturing capabilities are state-of-the-art:

State-of-the-art fabric sponging equipment ensures the highest level of

fabric consistency and relaxation, which is essential for new age fabrics

like Super 120s, 130s and lycra blends.

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The cutting room is equipped with the latest generation fabric spreading

and cutting machines from Gerber. This combined with the fabric pinning

system from Vieth, Germany ensures the best matching standards on

checks and stripe fabrics.

'Siro Set' is another specialty available at the plant.

Computerized presses and drying chambers ensure consistency of our

products. This technology, developed and perfected in Japan is designed to

impart a permanent finish to jacket seams and tailor creases on trousers

made from pure wool fabrics.

Our automated sewing workstations are from Durkopp Adler, Pfaff and

Strobel, ensuring the consistent steam quality in the assembly line.

The manufacturing processes are largely conveyerised to ensure the

seamless flow of garment components to the assembly and thereon to the

warehouse.

Stringent quality control at every stage of the process ensures that each

garment produced compares to international standards.

b) JEANS WEAR :

A state-of-the-art jean wears facility 'Ever blue Apparel Ltd.' has been set

up in Dodaballapur, near Bangalore.

The plant has the capacity to turn out 1.5 million garments per annum with integrated

garment design, sewing and washing operations. Our manufacturing capabilities are

complimented by an in-house design studio and sampling unit. Dedicated sample

washing machines ensure quick turnaround of samples.

Today, we are the developing and manufacturing partners of leading global brands. This

has been made possible by the optimal use of modern technology.

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The use of a high degree of automation right from computerised Gerber

spreader and cutter to laser patterning and finishing.

The stitching facility incorporates several automatic sewing workstations for

consistency of work execution, over locking and zipper attachments.

The finishing unit consists of scraping spray booths, sand blasting and laser

patterning to create special effects on the denim.

An in-house CPC controlled laundry, regarded as the best such facility in

India for washing and dyeing obtained from Europe. This ensures that we can

provide a wide variety of finishes to meet the diverse tastes of our global

customers.

c) DRESS SHIRT :

Our formal shirts have earned the reputation of being at par with the

world's best. This has been made possible through Celebrations Apparel Ltd, our

new facility in Bangalore, which has a technical collaboration with Flex Japan, one

of the largest dress shirt manufacturers in Japan.

The plant has the capacity to manufacture over 1.5 million shirts per year.

AN EYE FOR DETAIL :

We pay special attention to operations like armhole seam with single

needle machines. We possess the capability of manufacturing complete shirts

using single needle machines. Oil free sewing machines and a dust free

environment ensure spotless whites and light colour shirts. Threads, interlinings,

buttons and other embellishments are sourced from the best suppliers across the

globe to offer our customers the highest quality products.

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The layout of the manufacturing line has sufficient flexibility to adapt to smaller

runs and style changes. This flexibility permits the manufacture of both fused

and non-fised collars and cuffs as per our customer requirements.

BEHIND EACH SHIRT :

Specialized machinery imported from renowned manufacturers from

USA, Germany and Japan comprise of automated spreading and cutting with an

inbuilt system for matching checks and stripes. Pocket creasing and pocket

attach operations aided by SRP sewing machines make our unit one of the best

shirt making facilities in South Asia.

3) Brand Positioning Of Raymond :

Brand positioning is at the very core of brand building. A clear and

concise brand positioning provides a single voice to tell your brand’s story.

We work with companies to deliver brand-positioning strategies that drive business

growth. Much more than simply planning direction, we help you capture and choose how

to tell your brand story so that you can give your company one voice to drive your brand

and business forward.

Our process of positioning a brand includes in-depth assessments, external market

research, and honest conversations with brand influencers about the ideal brand. Working

closely with your team, we lead you through our proven process to identify opportunities

in your market and to create a brand personality that stands out from the competition in a

way that matters to your target audience.

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Types Of Brand :

a) RAYMOND

Trust, Excellence, Quality, these are some of the abiding values that have been associated

with Raymond over the years. Today, we have the distinction of being the world's largest

integrated producers of worsted suiting fabrics.

As an integrated player, we provide end-to-end fabric solutions right from manufacturing

worsted, woollen and linen fabrics to creating suits, trousers and apparel.

Our consistent focus on cutting-edge research and technology has resulted in pioneering

new products which have set new benchmarks in the worsted suiting industry in India.

Raymond have the distinction of producing the finest suiting in the world using super fine

wool from 80s to 250s count and blending the same with superfine polyester and other

specialty fibres, like Cashmere, Angora, Alpaca, Pure Silk, Linen etc.

We produce nearly 20,000 designs and colours of suiting fabric that have found their way

in over 55 countries including the European Union, USA, Canada, Japan and Australia

among others. Even as our products evolve with the times, the brand still caters to the

different faces of 'The Complete Man'- a man who is caring, sensitive and places a huge

premium on relationships.

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b) RAYMOND PREMIUM APPAREL :

Raymond, the name is synonymous with the values of trust, heritage & excellence. A

name that has over eight decades epitomized consumer's trust into its offerings into the

company's unflinching faith in the quality of its product. And now these values have been

extended to the range of readymade garments - 'Raymond Premium Apparel'.

Raymond Premium Apparel is a premium formal wear brand which is postioned to offer

classic garments with impeccable fits and inviting styles to the Global Indian. Needless to

say that the product is made only from premium Raymond fabrics.

The brand reflects the persona of a confident, discerning, classy and an intelligent man. A

person who is well educated, well traveled and above all is sensitive and caring. Virtues

like these make him the complete man in true sense of the word.

The Suits, Shirts and Trousers are made out of finest fabrics with superior construction

and sophisticated embellishments that give a rich feel and super fit. Superior

craftsmanship and attention to detail makes the product a pleasure to wear.

The range of 'Raymond Premium Apparel' is available at 'Raymond Select', the exclusive

brand outlet at Mumbai, Pune, Gurgaon and Chandigarh. It also has a healthy presence in

'The Raymond Shops', Central and 'Multi brand Outlets' all over India.

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c) PARK AVENUE :

Launched in 1986, Park Avenue provides stylish and innovative wardrobe solutions to

well-dressed gentlemen. As India's premium lifestyle brand, its designs embody the latest

in international fabric, styling, colour and fashion trends. We cater to customer needs

with formal clothing for varied occasions; be it for a day at office, high-powered

corporate meetings, social gatherings or celebrations.

Park Avenue evolved into an innovation brand offering leading new styles to the

corporate world and won the 'Most Admired Men’s Formalwear Brand ' at the Images

Fashion Awards 2011.

Can there be a dress code for adventure?

Or a little walk round the corner?

Or even an informal chat among friends?

The Park Avenue Spring Summer collection is proof that there can be. With its range of

natural, wool, silk and linen blends in pastel and relaxed hues, it offers a style statement

for every occasion. Even when there isn’t one.

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d) COLOUR PLUS :

Launched in 1993, Color Plus created a niche in the ready to wear market in India with a

premium range of clothing for men. With focus on product innovation and unique use of

colors it has today come a long way since inception.

The brand in no time has become the choice of the up market, trend-savvy, sophisticated

and discerning Indian man and changed the way he dressed. With flagship stores in the

best locations and international service, Color Plus brought in an international shopping

experience to the country.

Our distribution channel spread not only all over the country but also all over crossed

borders to the Middle East; it continues to grow with each year with now over 350

shopping destinations across the country.

Color Plus has always used highest quality fabrics and product engineering techniques

that give the user the unique comfort and tactile feel which no other brand offers. This is

clubbed with the use of colors to give the sophisticate, yet colorful look that is unique to

the Brand.

To ensure that customers get the best product from us, we have pioneered the techniques

like Golf Ball Wash, Come Dyed Casuals and Thermo-fused buttoning to name a few.

These innovations have taken our collection to a whole new level, making it synonymous

with the words “Luxury & Style”.

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All our products are complemented by a matching range of accessories like genuine

leather hand bags, hand braided belts, shoes & scarves.

Color Plus today is a complete lifestyle brand complementing every facet of your

personality: be it at work, leisure or those special moments

e) PARX :

Parx is a premium casual lifestyle brand, which is positioned to cater to the needs of

consumers who are looking for dressing up for life across occasions and events.

Parx reflects the persona of the energetic 22-30 year old who is aggressive, outgoing,

dynamic and lives his life to the fullest. Parx reflects the pulse of the new generation

which looks at clothing as a reflection of their attitude and vibrancy.

Right from its inception in 1999, Parx has been the preferred choice of brand in the

causal wear segment with continuous innovations and international trends and styling. It

is positioned to meet the consumer needs for "beyond work" requirements and this has

been addressed through categories like Urban, Sport, Excursion and Club.

The brand goes to great lengths to ensure quality. The manufacturing process uses the

best of machinery, techniques, tracking systems and processes. These are automated to a

large extent.

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Distribution is through the following channels: Exclusive Parx brand stores, which are

company-owned and operated; There are currently 13 exclusive stores and a few more to

be added by the end of this year. The Raymond Shop (which offers fabric from Raymond

and other readymade brands from the house of Raymond); large format stores like

Central; and other leading menswear stores.

Parx’s exclusive brand stores are directed toward delighting the customer with high

standards of service and providing an unique shopping experience.

f) MARKERS :

Makers is a fabric brand from the house of Raymond targeting the ever growing Tier 3

to 5 town consumers who are no longer living in the shadow of their metro counterparts

but are increasingly gaining more disposable income as well as the confidence to make it

big and be successful. Makers stand for “Creators of fashionable clothing for Indian

middle class” and hence it aspires to bring fashion come alive in everyday dressing of the

common man.

The brand stands for more than just the fabric. It is committed to guide the consumers

through the journey from "Fabric to Fashionable clothes" by providing branded fabric,

accessories, styling tips and stitching guides.

The product range comprises of poly viscose and poly wool trouser fabric, along with a

range of shirting fabric in 100% cotton, linen and cotton blends, which are available

through Thans and cut pieces as well.

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MAKERS also offers enhanced packaging solutions that are ideal for gifting on a special

occasion.

g) NOTTING HILL :

Notting Hill reflects style and manifests originality of today's fashion-conscious and

discerning young professionals at an affordable price.

Notting Hill was launched in 2007 to cater to the popular price segment. Designed in-

house, the brand collection features a spectrum of men's lifestyle products comprising

of suits, shirts, trousers, jeans, t-shirts and also accessories like ties, handkerchiefs

and socks. With exceptional fits, styling and colour range, Notting Hill promises to be

an instant hit with the young working professionals.

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h) THE RAYMOND SHOP :

The Raymond Shop is a premium retail store offering complete wardrobe

solutions to the discerning man through its range of fine fabrics for suits, jackets,

trousers, shirts & finely crafted garments from Raymond, contemporary range of

readymades from Park Avenue, stylish casual wear for occasions beyond work from

Parx, smart casuals from Color Plus and luxury formals from Manzoni. It also offers

Made to Measure – a unique offering for a perfect comfort fit. Added to this is a

quality Custom Tailoring service, which makes The Raymond Shop an ideal

destination for anyone to look good and feel great.

The Raymond Shop has been a pioneer in organized retailing in the country starting

around five decades ago. The Raymond Shop’s wide reach and range of products,

makes it the largest one stop retail network in the country. This chain of shops has

over the years become a yardstick by which other retail stores are judged. The retail

chain constantly sets new standards and creates environments that make shopping a

pleasure.

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Its Values

The chain has been customer driven right from the start providing excellent

service and merchandise. The Raymond Shop’s prime five values tightly woven into

a cohesive whole are – Trust, Excellence, Quality, Leadership and Service.

Its Reach

The Raymond Shop network started with a small corner shop in Ballard Estate,

Mumbai, around five decades ago. It has grown multifold with a dedicated team

making it the largest retail store in the country having more than 500 stores in prime

locations, in more than 200 cities in India.

We have also extended our network overseas having around 39 shops in 15 plus cities

of Middle East, Saudi Arabia, Srilanka, Bangladesh and Nepal.

In over 200 cities in India the Raymond Shop retail chain occupies a space of more

than 1 million square feet built-up area.

Our wide reach all over the country across big cities and smaller towns allows us to

reach a wide spectrum of consumers. Extending our reach we are now present in

some of the leading Malls with new retail formats.

Its Merchandise

The Raymond Shop customer walks into the shop confident of finding

merchandise for all occasions, whether it is for office, party, travel or just casual

weekend wear.

The Raymond Shops offer complete wardrobe solutions to its customers with a fine

range of fabric and ready to wear collection from Raymond. This includes well-

known brands - Park Avenue and Parx, which are available throughout the chain.

ColorPlus and the luxury brand Manzoni are available to our customers at select

stores.

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The Raymond Shop offers over 3000 qualities, shades and designs of Raymond fabric

to its customers.

Park Avenue is the single largest ready to wear brand in the country. Its range which

consists of trousers, jackets, shirts, suits and accessories are distributed through all

The Raymond Shops.

The Parx range of semi-formal and casual cottons and denim wear was launched to

cater to the fashionable and comfortable clothing segment.

Manzoni, a luxury range of menswear and accessories of high quality and

international styling has carved a special niche for itself through select shops in The

Raymond Shop network.

Raymond acquired ColorPlus smart casuals, in the Year 2003. This brand has been

able to reach more customers through select Raymond Shops.

Also available at the stores are Park Avenue range of toiletries and accessories.

If shopping is a chore, just pick up a Gift Cheque and gift the freedom of choice to

your loved one or business associate. These are available in denominations of 1000/- ,

500/- and 100/- and can be redeemed at any of The Raymond Shops across the

country.

With world class tailoring facilities the discerning customers find complete outfitting

facilities all under one roof. The Raymond Shop is a one-stop shop for millions of

discerning shoppers.

The Raymond Shop and Its Customers

The Raymond Shop has been customer oriented right from the beginning.

The Raymond Shop has always taken great care to build excellent customer

experience and ensures that it stays contemporary and fresh to its customers. The

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interiors are designed appropriately for various and different categories keeping it

customer friendly.

At The Raymond Shop everything comes together in a harmony of colour, design and

comfort from displays in show windows to array of fabrics in shades within shades,

from welcoming ambience of tastefully appointed interiors to gleaming racks

displaying row after row trendy ready to wear. Courteous, well-informed sales staff

and meticulous tailors, who serve as fashion and trend advisors, make the customer

confident and comfortable at The Raymond Shop

4) WOOLLEN OUTERWEAR :

Our production of woollen blankets started way back in 1925 at the

Raymond Thane plant with woollen blankets and woollen fabrics. In 1944, the mill

underwent a technological upgradation and modernization to produce quality woollen

fabrics. In 1984, a special plant was set up at Jalgaon to produce superior varieties of

blankets and shawls.

Today, we are the largest producer of woollen blankets in the country. We bring you

the widest range of woollen blankets and pashmina shawls made from pure and

regenerated wool and cashmere. These are produced in an array of colours and

designs in plains, dobbies and jacquards.

Over the years, our various offerings including the

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Exotic Collection : These are the 9 exotic collection by the

Raymond ,which are given below ;

Crystal

R

oy

al

Bl

is

s

Sage & PistachioMaroon Mustard &

Cream

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25

Camp Fire Collection : These are the 7 Camp Fire collection by the

Raymond ltd, which are shown below in different quality & colour,

CavalierCoral

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Green Brick Red, Aqua & BuffRed Ochre, Black & BuffCharcoal, Red & BeigePolar Bear Prince

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Peacock Blue, Red & OrangeFawn, Red & Yellow RustCarolina 

Autumn Collection :These are the 16 Autumn collection used by the

Raymond ltd, which are shown in below ;

Camellia Cascade

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Camel Tan Mustard, Black & FawnPeacock Blue, Navy

Blue & Grey

D

i

p

lo

m

a

t

31

32

Brown Buff & Tan

Sienna Red, Orange,

BrownGreen, Black & Fawn

Navy Blue , Red &

Fawn

Esquire Jasper

Magenta, Msutard & Aqua GreenUltramarine, Red & BlackBrick Red, Brown & Cream

MagnusOchre, Coffee Brown &

CreamMarquis

Magenta & OrangeSienna Red & Dark

BrownBrick Red, Magenta Ochre & Coffee Brown

Shawl Collection: among others, have won the admiration of domestic

and international customers.

BhagirathDoshala Pashmina

PASHMINA (Gents)  

DOSHALA  

Natural

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KarishmaDoshala PashminaBeige | Coffee Brown | Mustard | Light Grey

PASHMINA (Ladies) 

Fawn | Cerulean Blue | Natural Black | Khaki |

Blue Iris

Wind Red | Cobalt Blue | Sunflower Yellow |

Magenta | Blue Iris | Burgundy | Almond

Blossom

Karishma Triveni

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Turquoise | Peach | Special Pink | Yellow | Jade

Green | Mustard | TearoseChocolate Brown

Raymond Ltd.Source: BSE India19/01/2012Raymonds - Limited Review for Dec 31, 2011

Type: Corporate

Raymond Ltd has submitted to BSE a Copy of the Limited Review Report for the period ended

December 31, 2011.

AIPUR: Leading textile and apparel manufacturer, Raymond Limited, today launched its new economy brand 'Makers' in Rajasthan along with the incentive of insurance cover for its retailers.

The brand will be available in 2300 retail outlets spread over the 33 districts of the state by the fiscal end, a compaThe price of its suiting range begins from Rs.250 and the shirting range starts from Rs.149.

Along with the brand, the company also announced the launch of insurance scheme for retailers in the state.

The group personal accident policy provides annual insurance of up to Rs 10 lakh for the 'makers' retailers and would include their two salesmen, he said.ny official at the launching function.

REVIEW OF LITERATURE:

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Raymond Ltd. surge almost 11% on reports of LVMH investment in the

company’s apparel unit

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for a user defined time interval. It also contains the Live Stock Price and Volume,

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Type: Corporate ( 05/03/2012 )

Smart buying saw the shares of Raymond Ltd witnessing a surge of nearly 11 per cent per

cent in the early trade on the Bombay Stock Exchange.

The news of negotiations between a private equity arm of the world's biggest luxury

products group, LVMH negotiating to invest about USD150 million (Rs 750 crore) in

Raymond Apparel led to the surge.

At 11:00 hours, the shares of the company were trading at Rs 366.90, up 4.49 per cent on

Bombay Stock Exchange (BSE).

In a similar fashion, shares of the company were trading at Rs 366.85, up 4.65per cent on

the National Stock Exchange.

Meanwhile, the broader benchmark Sensex was quoting at 17,455.19, down 181.80

points at 11:00 hours.

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The Directors are pleased to present their 86th report on the business and operations of your Company together with the Audited Statement of Accounts for the year ended March 31, 2011.

1. CORPORATE OVERVIEW

Raymond Limited is Indias leading Textile and Branded clothing Companywith interests in engineering (files, tools and auto components) havingits corporate headquarters in Mumbai.

The Company prepares its financial statements in compliance with therequirements of the Companies Act, 1956, and the Generally AcceptedAccounting Principles (GAAP) in India. Overall the financial statementshave been prepared on the historical cost basis.

2. FINANCIAL HIGHLIGHTS

With the economic revival gathering momentum, a clutch of growthtrajectory initiatives enabled your Company to deliver positive growthand further consolidate its leadership in its core businesses. FY 2011has been both challenging and momentous for your Company. Theresilience and inherent strength of your Companys superiortechnology-based manufacturing, deep pan-India retail networkaccompanied by strong and successful brands were the key-drivers thatenabled your Company to deliver better performance with improvementsacross key parameters in FY 2011.

A significant development during the year under review has been theamicable solution arrived by the Company with the Workmen Union at thehigh-cost Thane Textile factory. The Voluntary Separation Schemepackage of Rs. 238 crore was signed in October 2010 covering over 1850workers. Your Directors wish to compliment workers of the Thane Unitfor the peaceful settlement and wish them and their familes all thevery best for the future.

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The amalgamation of erstwhile Raymond Apparel Limited with SolitaireFashions Limited during FY 2011 has enabled to optimize operationalefficiencies and rationalise costs. As per the approvals granted by theHonble High Courts, Bombay and Madras respectively under Section391-394 of the Companies Act, 1956 the Assets and Liabilities oferstwhile Raymond Apparel Limited have been transferred to SolitaireFashions Limited with effect from April 1, 2009. Subsequently, as perthe aforesaid High Courts Orders, the name of Solitaire FashionsLimited has been changed to Raymond Apparel Limited.

For the Financial Year ended March 31, 2011, the gross turnover of yourCompany was Rs.1496.53 crore as compared to Rs.1339.37 crore in theprevious year. Profit before tax and exceptional items was Rs. 100.02crore as against Rs.18.88 crore in the previous year. The net lossafter exceptional items, prior year adjustments and provision for taxeswas of Rs. 100.19 crore as against a net profit of Rs.25.06 crore lastyear. The loss is on account of the exceptional item of the one-timeworkers settlement at the Companys Thane Textile Unit amounting toRs.238 crore. In view of the divestment of Files business effectiveOctober 1, 2009, figures of the current periods are not comparable withcorresponding figures of previous year.

Your Directors are optimistic that the Companys performance willimprove and also observe that the exceptional charge of Rs. 238 crorein the Financial Statements for FY 2011 consequent to the WorkersSettlement in Thane has resulted in a Net Loss of Rs.100.19 crore. Inview of the good operating profits, your Directors propose to declaredividend out of Reserves by following the Companies (Declaration ofDividend out of Reserves) Rules 1975. Accordingly, an amount of Rs.27.07 crore has been withdrawn from General Reserves. Out of the amountavailable for appropriation, your Directors recommend a dividend of 10%aggregating to Rs. 6.14 crore (Previous Year: Nil) on Equity Shares.The dividend tax on the dividend recommended will be Rs.1.00 crore(Previous Year: Nil).

Your Company continues with its task to build business with long-termgoals based on its intrinsic strength in terms of its powerful brands,quality manufacturing prowess, distribution strength and customerrelationships. Rationalising and streamlining operations to bring aboutefficiencies and reducing costs will remain top priority.

3. OVERVIEW OF THE ECONOMY

Despite new risks, the global economic recovery is gaining strength andthe IMF has projected a 4.5% world growth in 2011 and 2012. Whilegrowth in emerging economies remain strong, that in the US and Europeanregion is slowly gaining momentum. Some of economies of the developednations are still a concern with the Euro zone being the mostvulnerable as rating agencies continue to downgrade the sovereignrating of many of economies in this region. The natural disaster inJapan, sharp increase in oil prices consequent to the turmoil in theMiddle East and North Africa is fuelling uncertainty to the pace ofglobal recovery. Globally, elevated food and commodity pricesaccompanied by the spike in oil prices have engendered inflationconcerns.

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The Indian Economy registered improved growth and was amongst thebetter performers amid emerging market economies. Central StatisticalOrganizations recent estimated Indian GDP growth rate of 8.6% for2010-11 is consistent with the RBIs projections for the same period.While the area sown under the Rabi crop is higher than last year whichaugurs well for agricultural production, the index of industrialproduction continues to be volatile. The other indicators such aslatest Purchasing Managers Index, direct and indirect tax collections,merchandise exports and bank credit suggest that the growth momentumpersists. However, continuing uncertainty about energy and commodityprices may vitiate the investment climate, posing a threat to thecurrent growth trajectory. Inflation remains a challenge for the IndianEconomy and the key risks are tighter monetary conditions and risingprices eating into the consumers disposable income.

4. ANALYSIS AND REVIEW

Textile Industry Conditions

The Textile industry is one of the largest and most important sectorsin the Indian economy in terms of output, foreign exchange earnings andemployment. Indias Textile industry is one of the leading textileindustries in the world. It contributes approximately 14% to Indiasindustrial production, 4% to the GDP and 17% to the countrys exportearnings. It provides direct employment to over 35 million people andis the second largest provider of employment after the agriculturalsector. The industry is expected to grow steadily from its present US$70 billion to US$ 110 billion by 2015. Textile products includingwearing apparel have registered a growth of 4.3% during April-January2010-11, as per the Index of Industrial Production (IIP) data releasedby the Central Statistical Organisation.

Notwithstanding signs of recovery from the previous financial crisis,the textile and apparel industry went through a tough year strugglingwith the surging and fluctuating prices of raw materials. However, theGovernment is making efforts in boosting the textile industry throughvarious initiatives and investments are increasing steadily. TheMinistry of Textiles has sanctioned a total of US$ 133 million underTechnology Upgradation Fund Schemes (TUFS) during September 2010. Theindustry is expected to continue to grow at a significant rate in thefuture, as it is fuelled by a strong domestic consumption.

Opportunities and Challenges

The present global economic scenario throws up opportunities forfundamentally strong companies such as your Company. The inherentstrength, in the form of strong domain expertise, powerful brandpositioning and strength and resilience of the brands, fully integratedstate-of-the-art production facilities, cutting-edge technology andunparalleled product innovation capabilities combined with the deepretail market penetration, growth potential of the Tier 3, 4 and 5towns; provide a highly potent platform to seize opportunities in theform of newer markets, new segments of customers, new channels ofdistribution, etc.

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On the other hand, value buying by consumers, sharp increase in rawmaterial prices, continued weakness in developed geographies, prospectof higher domestic inflation, fiscal tightening, proposed imposition ofmandatory levy on branded garments and interest rates are some of thechallenges facing the Textile Industry at large.

Overview

The Company is the market leader in the textiles sector in India, has apowerful brand Raymond, state-of-the-art manufacturing facilities anda strong all India retail presence in the form of The Raymond Shop(TRS). The Company is considered as the most respected company in theApparel and Textile sector of India. The Company is on the path tobecoming a lifestyle solution for discerning customers with an offeringof a range of fabrics, garments and accessories in a premium shoppingenvironment. The Company continues its growth of its retail network ofTRS in tier 3, 4 and 5 towns.

Performance Highlights

Robust demand conditions in the domestic market facilitated the Companyto improve its realisation by passing on the cost increase andimproving the product mix. The net sales for Textiles Division were Rs.1485.43 crore compared to Rs. 1222.93 crore in the previous year.

Market Share and Retail Network

The Company is the market leader in India and is considered as one ofthe most formidable players in the global markets for high-qualitysuiting. The Company continued its focus on retail segment expansionduring this financial year.

In FY 2011 the Textiles Divisions domestic sales were Rs. 1349.03crore as against Rs.1089.29 crore in FY 2010. During FY 2011 theCompany opened 56 new retail stores. The Company continues to bejudicious in its selection of store locations.

Export

The Exports market condition were tough during the financial yearbecause of severe competition and continuous increase in the rawmaterial prices resulting in increase in the input costs. The Textileexports for the financial year 2010- 2011 remained flat and were Rs.136.40 crore as against Rs. 133.64 crore in the previous year.

Raw Material

Wool prices have shown an upward trend in most of the months in theyear under review. The Australian Dollar has appreciated against theIndian Rupee and has shown a rising trend over the last 6 months. The

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Polyester Fibre prices also had an increasing trend during the yearunder review.

5. FINANCE AND ACCOUNTS

The observations made by the Auditors in their Report have beenclarified in the relevant notes forming part of the Accounts, which areself explanatory.

6. PERFORMANCE OF SUBSIDIARY COMPANIES

Domestic

Raymond Apparel Limited

Members will recall that in order to optimize operational efficiencies,rationalize cost, enhance synergies of Branded Apparel Business, etc.,the erstwhile Raymond Apparel Limited was amalgamated with anothersubsidiary company namely; Solitaire Fashions Limited and the Scheme ofAmalgamation and Arrangement was sanctioned by the Honble High Courtof Judicature at Madras and by the Honble High Court of Judicature atBombay. As part of the Scheme approved by the Honble High Courts andafter following the legal process stipulated under Section 21 of theCompanies Act, 1956 the name of Solitaire Fashions Limited was changedto Raymond Apparel Limited.

FY 2011 witnessed improvement in customer sentiments with marginalincrease in foot-falls. Consequently, the performance of this companywas better than the previous year. The gross turnover for the FY 2011was Rs. 468.79 crore (Previous Year: Rs. 406.29 crore) while the NetProfit after tax was Rs. 22.64 crore (Previous Year: 34.49 crore).

This company has taken many initiatives to consolidate its marketleadership, improve profitability, product innovation, appropriateproduct-price mix and operating efficiencies with a special focus inretail.

Colorplus Fashions Limited

The Companys gross turnover for the year ended March 2011 was Rs.172.00 crore (Previous Year: Rs. 154.28 crore). The Company had aprofit after tax of Rs. 10.38 crore (previous year loss : Rs. 3.40crore). This Company continues its initiatives at innovation and is aleading player in the premium casual wear segment.

Silver Spark Apparel Limited

The gross turnover of the Company was Rs. 109.36 crore as compared tothe previous year Rs. 83.49 crore. The Company had a Profit after Taxof Rs. 5.62 crore (Previous Year: Rs. 3.06 crore).

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Celebrations Apparel Limited

The gross turnover of the Company was Rs. 17.17 crore (Previous Year:Rs. 17.42 crore). The Company earned a profit after tax of Rs.0.85crore (Previous Year Rs. 2.09 crore).

Everblue Apparel Limited

The Company earned a Profit after Tax of Rs.0.82 crore (Previous Year:Rs. 2.15 crore).

Raymond Woollen Outerwear Limited

The gross turnover of the Company, net of returns and discounts was Rs.50.58 crore (Previous Year: Rs. 46.17 crore). The Company incurred aloss before prior period adjustment of Rs. 4.32 crore (Previous Year:loss Rs. 1.44 crore).

Your Company is in the process of seeking necessary legal approvalsfrom members / others for the amalgamation of this company. This legalprocess is expected to help improve the capacity of your Company andenhance operational efficiencies.

JK Files (India) Limited

The Company is engaged in manufacturing and marketing of Steel Files.With acquisition of Files & Tools Division of Raymond Ltd., in theprevious financial year, this Company added to its portfolio ofproducts to the established business of High Precision Files, HSSCutting Tools, Power Tools and Hand Tools.

The Company continues to be the market leader in the files segment inthe domestic market and the largest producer of Steel Files in theworld.

The Export sales of the Company was Rs.100.10 crore compared toRs.45.72 crore in the corresponding previous year. The Company reportedgross turnover of Rs. 272.12 crore for the year under review (PreviousYear: Rs.138.66 crore). The profit after tax was Rs.10.91 crore(Previous Year : Rs.4.58 crore). The significant growth during the yearis also seen on account of acquisition of Files & Tools business ofRaymond Ltd., during second half of previous year. In spite ofspiraling inflationary trends and volatile foreign currency, theCompany was able to put up a significantly good performance during theyear under review. The initiatives taken to improve on time in full(OTIF), customer service, control on cost, productivity, process andcontrol over rejections, effective implementation of Theory ofConstraints model, optimizing working capital and aggressive marketingare the factors which have helped the Company to register goodperformance for the year under review.

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The Company has taken conscious efforts towards better environment andsafety at all its manufacturing facilities. This companys allmanufacturing units now have BS OHSAS 18001:2007 and ISO 14001: 2004certification.

JK Talabot Limited

The Company manufactures Files and Rasps at its plant located inChiplun, Ratnagiri District, in the state of Maharashtra. During theyear, gross turnover of the Company was at Rs.21.62 crore (PreviousYear: Rs. 17.44 crore). The Company recorded Profit after Tax ofRs.1.43 crore (Previous Year: Rs.0.83 crore) during the FY 2011.

The performance of the Company during the year was good, as itcontinued its initiative on improvement in productivity, quality, andcontrol on costs, working capital, and better capacity utilizationthrough effective implementation of Theory of Constraints model.

Scissors Engineering Products Limited

The Company incurred a loss of Rs.43,666 (Previous Year: loss ofRs.34,631) during the year under review.

Ring Plus Aqua Limited

The gross turnover of the Company was at Rs. 116.55 crore (PreviousYear: Rs. 81.74 crore). Profit after Tax was at Rs. 11.29 crore(Previous Year: Rs. 5.08 crore). With significant growth trend in theAuto Industry, the Company crossed the milestone of gross salesturnover of Rs.100 crore during the year under review.

The Gear sales showed significant growth during the year under reviewand were higher by 58% at Rs. 73.21 crore as compared to Rs. 46.30crore in the previous year. The export sales have doubled and domesticsales have recorded good growth of around 22% compared to previousyear. With growing demand, the Company has decided to augment itscapacity by 1.5 million gears during the year under review, to taketotal Ring Gear capacity to 4.5 million per annum. The capacityexpansion is progressing as per schedule and is expected to be completeby September 2011.

The sales for Bearing Division were marginally higher at Rs. 26.55crore as compared to the previous year when it was Rs. 25.73 crore. USAcontinued to be the major market for Bearing exports.

Pashmina Holdings Limited

The Company made a profit after tax of Rs 1.99 crore in the FY 2011 ascompared to a loss of Rs.0.05 crore in the previous year.

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Overseas Companies

Jaykayorg AG recorded a profit of CHF 240,318 (equivalent to Rs.1.15crore) [Previous Year: loss CHF 743,667 (equivalent to Rs.3.34 crore)]for the year ended December 31, 2010.

Raymond (Europe) Limited recorded a profit of Pound Sterling 19,474(equivalent to Rs.0.14 crore) [Previous Year: loss Pound Sterling111,804 (equivalent to Rs.0.84 crore)] for the year ended December 31,2010.

R & A Logistics INC, USA, a subsidiary of Ring Plus Aqua Limited set upin USA to provide better service to US based customers, earned a profitof US$ 11,111 (equivalent to Rs. 0.04 crore) [Previous Year: profit US$7,239 (equivalent to Rs.0.03 crore)] for the year ended March 31, 2011.

7. PERFORMANCE OF JOINT VENTURES

Raymond UCO Denim Private Limited

During the year under review, the sales turnover of Indian operations,net of returns and discounts recorded a 28% growth to Rs. 596.06 croreincluding exports of Rs.263.44 crore, as compared to Rs. 466.30 croreincluding exports of Rs. 226.92 crore for the previous year ended March31, 2010.

The Company recorded a profit before tax and exceptional items ofRs.6.18 crore as against a loss of Rs 4.27 crore in the previous yearended March 31, 2010.

During the year, Rs. 48.54 crore was invested in its subsidiary fromthe proceeds of the equity capital subscribed by both the shareholders.The subsidiary has used these funds for repaying its obligations to theEuropean Banks and consequently the corporate guarantee standsdischarged. A provision of Rs. 20 crore has been made towardsdiminution in the value of investment in the books of this Company madein its subsidiary. The previous year had an exceptional gain of Rs.7.23 crore arising from write back of interest provided on loans anddebentures subscribed by one of the shareholders of the Company.

Raymond Zambaiti Limited

The gross turnover of the Company was Rs. 211.76 crore (Previous Year:Rs. 163.20 crore). The Company had a Profit after Tax of Rs. 7.51 crore(Previous Year: Rs. 11.12 crore) during the year ended March 2011.During the year under review, steep increase in cotton prices hasimpacted the profitability of the Company. This Company is thepreferred premium high value shirting supplier to leading domesticbrands and has a strong emphasis on quality and innovation.

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8. QUALITY & ACCOLADES

Your Company continues to win awards year-on-year. Some notable awardsduring the year are:

- The Chhindwara unit of the Company won The National Safety Awardunder Scheme-II and runner up in Scheme-I for the performance year2008.

- The Vapi Textile Unit has been certified OHSAS 18001:2007 anddeclared as ISO 14001:2004.

- The Vapi Textile Unit won the 2nd Prize and Jalgaon Textile Unit wasawarded Certificate of Merit in Energy Conservation at The NationalEnergy Conservation Awards in the Textile sector on December 14, 2010.

- The Company has recently been adjudged as Indias Most RespectedCompany in the Textile and Apparel sector by Business World.

- The Company bagged the most prestigious award as The Franchisor ofthe Year at the Franchise and Star Retailer Awards organized byFranchise India.

- The Company has been awarded the SAP Customer Centre of Expertise(CCOE) certification for its SAP operations on November 3, 2010.

- J.K. Files (India) Limited has won for the 4th consecutive year EEPCIndia Star Performer Award year 2008-09, for the highest engineeringexports in Hand Tools (Large Enterprise).

9. CONSOLIDATED ACCOUNTS

In accordance with the requirements of Accounting Standard AS-21prescribed by The Institute of Chartered Accountants of India, theConsolidated Accounts of the Company and its Subsidiaries (includingthe Joint Ventures) is annexed to this Report.

The Gross Consolidated Turnover for the year FY 2011 was Rs.3035.91crore (Previous Year : Rs.2507.83 crore). The Consolidated Profitbefore Tax before exceptional items was Rs.198.92 crore (Previous Year:Rs.43.19 crore). The Consolidated Profit after tax for the year wasRs.38.04 crore (Previous Year Loss : Rs.50.15 crore).

10. CORPORATE GOVERNANCE

Your Company continues to be committed to good Corporate Governancealigned with good practices. Your Company is in compliance with thestandards set out by Clause 49 of the Listing Agreement with the StockExchanges.

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A separate Report on Corporate Governance along with the Auditorscertificate on compliance with the Corporate Governance as stipulatedin Clause 49 is set out in this Annual Report and forms part of thisReport.

11. DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and theCompanys Articles of Association, Shri Nabankur Gupta and ShriShailesh V. Haribhakti, Directors, retire by rotation at theforthcoming Annual General Meeting and, being eligible offer themselvesfor re-appointment.

Shri Akshay Chudasama and Shri Boman R. Irani, Independent Directorswere appointed as Additional Directors of the Company with effect fromApril 21, 2011. In terms of Section 260 of the Companies Act, 1956,both Shri Chudasama and Shri Irani hold office only upto the date ofthe ensuing Annual General Meeting. The Company has received requisitenotice in writing from members proposing their respective names for theoffice of Director liable to retire by rotation.

12. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to sub-section (2AA) of Section 217 of the Companies Act,1956, the Board of Directors of the Company hereby state and confirmthat:

(i) in the preparation of the Annual Accounts, the applicableaccounting standards have been followed along with proper explanationrelating to material departures;

(ii) the Directors have selected such accounting policies and appliedthem consistently and made judgments and estimates that are reasonableand prudent so as to give a true and fair view of the state of affairsof the Company as at March 31, 2011 and of the loss of the Company forthe year ended on that date;

(iii) the Directors have taken proper and sufficient care for themaintenance of adequate accounting records in accordance with theprovisions of the Companies Act, 1956 for safeguarding the assets ofthe Company and for preventing and detecting fraud and otherirregularities;

(iv) the Directors have prepared the annual accounts on a going concernbasis.

13. AUDIT

Messrs. Dalal & Shah, Chartered Accountants, who are Statutory Auditorsof the Company hold office up to the forthcoming Annual General Meeting

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and are recommended for re-appointment to audit the accounts of theCompany for the Financial Year 2011-12. As required under theprovisions of the Section 224 (1B) of the Companies Act, 1956, theCompany has obtained written confirmation from Messrs. Dalal & Shahthat their appointment if made would be in conformity with the limitsspecified in the Section.

As per the requirement of Central Government and pursuant to Section233B of the Companies Act, 1956, your Company carries out an audit ofcost records relating to Textile Division every year. Subject to theapproval of the Central Government, the Company has appointed Messrs.R. Nanabhoy & Co., Cost Accountants, as Cost Auditors to audit the costaccounts of the Company for the Financial Year 2011-12. The cost auditreport for the Financial year 2009 – 2010 which was due to be filedwith the Ministry of Corporate Affairs on September 30, 2010 was filedon August 12, 2010.

14. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company believes in formulating adequate and effective internalcontrol systems and implementing the same strictly to ensure thatassets and interests of the Company are safeguarded and reliability ofaccounting data and accuracy are ensured with proper checks andbalances. The Internal control systems is improved and modifiedcontinuously to meet the changes in business conditions, statutory andaccounting requirements.

The Audit Committee of the Board of Directors, Statutory Auditors andthe Business Heads are periodically apprised of the internal auditfindings and corrective actions taken.

The Audit Committee of the Board of Directors actively reviews theadequacy and effectiveness of internal control system and suggestsimprovements for strengthening them. The Company has a robustManagement Information System which is an integral part of the controlmechanism.

15. RISK MANAGEMENT

The Company is exposed to risks from market fluctuations of foreignexchange, interest rates, commodity prices, business risk, compliancerisks and people risks.

Foreign Exchange Risk

The Companys policy is to actively manage its long term foreignexchange risk within the framework laid down by the Companys forexpolicy.

Interest Rate Risk

Given the interest rate fluctuations, the Company has adopted a prudent

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and conservative risk mitigating strategy to minimise the interestcosts.

Commodity Price Risk

The Company is exposed to the risk of price fluctuation on rawmaterials as well as finished goods in all its products. The Companyproactively manages these risks in inputs through forward booking,inventory management, proactive management of vendor development andrelationships. The Companys strong reputation for quality, productdifferentiation and service, the existence of a powerful brand imageand a robust marketing network mitigates the impact of price risk onfinished goods.

Risk Element in Individual Businesses

Apart from the risks on account of interest rate, foreign exchange andregulatory changes, various businesses of the Company are exposed tocertain operating business risks, which are managed by regularmonitoring and corrective actions.

Compliance Risks

The Company is exposed to risks attached to various statutes andregulations including the Competition Act. The Company is mitigatingthese risks through regular reviews of legal compliances, throughinternal as well as external compliance audits.

People Risks

Retaining the existing talent pool and attracting new manpower aremajor risks. The Company has initiated various measures such as rolloutof strategic talent management system, training and integration oflearning activities. The Company has also established RaymondLeadership Academy, which helps to identify, nurture and groommanagerial talent within the Raymond Group to prepare them as futurebusiness leaders.

16. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has an innate desire and zeal to contribute towards thewelfare and social upliftment of the community. The Company continuesto support the following CSR initiatives:

- Smt. Sulochanadevi Singhania School at Thane, Maharashtra and theKailashpat Singhania High School in Chhindwara, M.P., having overallstrength of around 7400 students, provide quality education not only tothe Raymond employees children, but also to the children of the localpopulace;

- Raymond Embryo Research Centre for cattle is a centre set up at

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Gopalnagar, Bilaspur in Chhattisgarh and its ceaseless efforts andendeavours have made several significant achievements in EmbryoTransfer. Raymond was the first organisation in India to introduceEmbryo Transfer in Sheep;

- J. K. Trust Gram Vikas Yojana (JKTGVY) launched in 1997 helpstransfer of the technical expertise gained over three decades to thegrass-root level. The mission of this initiative is to significantlyimprove the quality of life in Indias rural areas through a "CattleBreed Improvement Programme". This initiative operates in a network ofover 4000 Integrated Livestock Development Centre in Chhattisgarh,Madhya Pradesh, Uttarakhand and Andhra Pradesh; and

- Raymond Rehabilitation Centre has been set-up for the welfare ofunder-privileged children at Jekegram, Thane. This initiative enablesless fortunate children to be self-sufficient in life. The Centreprovides free vocational training workshops to young boys over the ageof 16. The three-month vocational courses comprise of basic training inelectrical, air-conditioning & refrigeration, plumbing etc.

17. ENVIRONMENT AND SAFETY

The Company is conscious of the importance of environmentally clean andsafe operations. The Companys policy requires the conduct of alloperations in such manner so as to ensure safety of all concerned,compliance of statutory and industrial requirements for environmentprotection and conservation of natural resources to the extentpossible.

18. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company takes pride in the commitment, competence and dedicationshown by its employees in all areas of business. Various HRinitiatives are taken to align the HR Policies to the growingrequirements of the business.

The Company has a structured induction process at all locations andmanagement development programmes to upgrade skills of managers.Objective appraisal systems based on Key Result Areas (KRAs) are inplace for senior management staff.

Technical and safety training programmes are given periodically toworkers. Industrial relations remained generally cordial.

19. STATUTORY INFORMATION

Information pursuant to sub-section 1 (e) of Section 217 of theCompanies Act, 1956, read with the Companies (Disclosure of Particularsin the Report of the Board of Directors) Rules, 1988 is given inAnnexure - 1 to this Report.

During the FY 2011, 13 employees employed throughout the year, were in

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receipt of remuneration of Rs.60 lakh per annum or more amounting toRs.1474.28 lakh and 27 employees employed for part of the FY 2011 werein receipt of remuneration of Rs.5 lakh per month or more amounting toRs.540.50 lakh. The information required under Section 217 (2A) of theCompanies Act, 1956 read with Companies (Particulars of Employees)Rules, 1975 and forming part of the Directors Report for the yearended March 31, 2011 is given in Annexure – 2 to this report.

None of the employees listed in the said Annexure is a relative of anyDirector of the Company. None of the employees hold (by himself oralong with his spouse and dependent children) more than two percent ofthe equity shares of the Company.

As per Section 212 of the Companies Act, 1956, the Company is requiredto attach the Directors Report, Balance Sheet, and Profit and Lossaccount of subsidiaries. The Central Government has granted generalexemption from complying with Section 212 of the Companies Act, 1956 toall companies vide Notification No. 5/12/2007-CL-III dated February 8,2011. Accordingly, your Company has presented in this Report, theconsolidated financial statements of the holding company and all itssubsidiaries, duly audited by the Statutory Auditors. The Company hasalso disclosed in the Consolidated Balance Sheet the informationrequired to be provided as per the aforesaid notification datedFebruary 8, 2011. The Company will make available the audited annualaccounts and related information of its subsidiaries, upon request byany of its shareholders. The annual accounts of the subsidiarycompanies will also be kept for inspection, by any member at theRegistered Offices of the Company and its subsidiary companies.

The Company has not accepted any deposits, within the meaning ofSection 58-A of the Companies Act, 1956 read with the Companies(Acceptance of Deposits) Rules, 1975 made thereunder. The unclaimedFixed deposits amounting to Rs. 95,000/- as on March 31, 2010, wastransferred to Investor Education and Protection Fund during the yearunder review.

20. CAUTIONARY STATEMENT

Statement in this Directors Report & Management Discussion andAnalysis describing the Companys objectives, projections, estimates,expectations or predictions may be "forward-looking statements" withinthe meaning of applicable securities laws and regulations. Actualresults could differ materially from those expressed or implied.Important factors that could make a difference to the Companysoperations include raw material availability and prices, cyclicaldemand and pricing in the Companys principal markets, changes inGovernment regulations, tax regimes, economic developments within Indiaand the countries in which the Company conducts business and otherincidental factors.

21. APPRECIATION

Your Directors wish to place on record their appreciation for thecontribution made by employees at all levels but for whose hard work,solidarity, and support your Companys achievements would not have beenpossible. Your Directors also wish to thank the customers, dealers,

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agents, suppliers, joint venture partners, investors and bankers fortheir continued support and faith reposed in the Company. The Companyalso thanks the Central Government, the concerned State Governments andother Government Authorities for their support and co-operation.

for and on behalf of the Board

Gautam Hari SinghaniaChairman and Managing Director

Mumbai, April 21, 2011

1

Raymond Limited

Parent Company Raymond limited

Category Apparel and Accessories

Sector Lifestyle and Retail

Tagline/ Slogan Feels like heaven; Made to measure; Complete man

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STPUSP

SegmentHigh quality and innovation Premium business and fashion clothing

Target Group Urban upper-middle and higher class males

Positioning An aspirational brand for achievement

Product Portfolio

Brands

1. Color Plus2. Park Avenue

3. Parx

SWOT Analysis

Strength

1. Strong research and development for product and innovations

2. Loyalty of customers and high product quality3. Loyalty of employees due to decentralization

4.Owns 550 stores in more 200 cities across India and overseas

5. People trust on products and high brand loyalty

6. Being a multinational company it has the ability to attract more customers than local companies

7. Good advertising and popular branding through TVCs and print ad campaigns

Weakness 1. Global penetration is limited as compared to a few other international brands

2. Presence of Indian and international brands offers more offering to customers therefore high brand

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switching

Opportunity

1.Consistent growth over years2.Large and growing market

3. Global expansion would give more opportunities for brand to grow

Threats

1. All major players in the industry are competing with each other not only on low price but also better

quality

2. Regional trade alliances

3. Increased social and ecological awareness will put pressure on company to follow international labor

laws and environmental laws.

Competition

Competitors1.Arvind mills2.Louis Philippe3.Zodiac

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