Since the day demonetisation of highest value bills was announced last month in India, textile and apparel brand, Raymond has seen nearly 30 per cent decline in demand but expects the situation to get better in the beginning of next year.
Sanjay Behl, CEO, Raymond told an Indian daily, “It (demonetisation) has come at a time when the wedding season shopping is at its peak. The liquidity has also shrunk, and more than 80 per cent of this (textile) business is cash driven. However, I see the situation easing up in the beginning of next year.” He added that another major impact will be the Goods and Services Tax (GST) once effective.
However, the manufacturer feels that its expansion plans will remain unaffected by the current scenario as its store expansion is more franchise-based and less company capital-based.
Also Read – Raymond aims to achieve turnover of Rs. 10,000 crore in next 5 years
With 1,060 stores at present, Raymond is aiming for about 1,500 stores for its brands by the year 2020 by continuing to add about 150-200 stores every year for the next three years.
