CORPORATE PRESENTATION

June, 2009

DISCLAIMER

1.

Numbers mentioned in this note in respect of information provided on retail network and branded
sales etc. have been compiled by the management and are being provided only by way of additional
information. These are not to be construed as being provided under any legal or regulatory
requirements. The accuracy of these numbers have neither been vetted nor approved by the Audit
Committee and the Board of Directors of Raymond Ltd., nor have they been vetted or reviewed by the
Auditors, and therefore may differ from the actual.

2.

Statements in this Presentation describing the Companys objectives, projections, estimates,

expectations or predictions may be forward looking statements within the meaning of applicable
securities laws and regulations. Actual results could differ materially from those expressed or implied.
Important factors that could make a difference to the Companys operations include global and Indian
demand supply conditions, finished goods prices, input material availability and prices, cyclical
demand and pricing in the Companys principal markets, changes in Government regulations, tax
regimes, economic developments within India and the countries within which the company conducts
business and other factors such as litigation and labour negotiations. The Company assumes no
responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any
subsequent development, information or events, or otherwise.

CONTENTS
RAYMOND VALUES
RAYMOND STRATEGY
CURRENT BUSINESS MODEL

DESIGN & MANUFACTURING

BRANDS

RETAIL

INVESTING FOR GROWTH

PERFORMANCE
3

RAYMOND VALUES

Over the years,

Raymond VALUES
have re-enforced
CONFIDENCE
in the minds of the
CONSUMER
4

Domestic

International

RAYMOND STRATEGY
International Clients
Raymond
Woolen
Outerwear Ltd

Exclusive
Stores

Apparel
Brands
Park Avenue
Color Plus
Parx
Manzoni
ZAPP!
Raymond

Raymond
Zambaiti

Raymond
UCO

Export

Retail

Brand
Celebrations
Apparel

Silver Spark

Everblue
Apparel

Garment

MBOs
Raymond
Worsted

Woolen
Fabric

Wool

High-value
cotton shirting

Cotton (Fine)

Denim

Fabric

Cotton (Denim)

Fibre
5

REVENUE COMPOSITION

RAYMOND CURRENT BUSINESS MODEL

DESIGN
AND

BRAND

RETAIL NETWORK

Across Categories
Across Income
Strata

Experience
Lifestyle
Statement
Demonstrate
affluence

MANUFACTURING

Retail
Experience

INSTITUTIONAL
CUSTOMER

Solutions
Collections
Manufacturing fabric
Worsted
Woolen
Cotton Shirting
Denim
Accessorisation

RETAIL
CUSTOMER

GARMENTING
Garments
Jackets
Trousers
Shirts
Jeans

Suits

Complete
Solution

INTERNATIONAL
CUSTOMER
Factored
Solution
Deliver solution
across
continents
7

DESIGN & MANUFACTURING

MANUFACTURING FACILITIES FABRICS

Fabrics

Processes

Capacity

Location

Worsted Fabric

Combing
Spinning
Weaving
Finishing

38 mmpa

High Value Cotton Weaving

Shirting Fabric
Finishing

11.5 mmpa

Kolhapur

Woolen Fabric

Spinning
Weaving
Finishing

1.7 mmpa

Jalgaon

Denim Fabric

Spinning
Dyeing
Weaving
Finishing

47 mmpa

Yavatmal, India 40 mmpa

Romania 7 mm
Gent, Belgium 18 mmpa
(closed down)
USA 15 mmpa (closed
down)

Thane 7 mmpa
Chindwara 14 mmpa
Vapi 14 mmpa
Jalgaon 3 mmpa

GARMENTING

10

MANUFACTURING FACILITIES - GARMENTING

Garment

Capacity

Location

Shirts

Garmenting for group

companies

1.5 m shirts p.a.

Bangalore

Jackets

Has domestic and

international clients
Will be adding up Jackets
capacity of 600 units per
day. Expected to
commence production
from Q3FY10.

0.9 m p.a.

Bangalore

2.5 m p.a.

Bangalore

Denim garmenting

Hived off into the denim

JV

3 m garments p.a.

Bangalore

Suit Plant

Hand made suits (Jackets

and Trousers)

Trousers

Bangalore - (200
suits per day)
Will commence
operations from
Q3FY10

All the facilities cater to domestic and international clients and is a part of
the One-Stop Shop strategy of the company.
11

BRANDS

12

EXISTING BRANDS SCOPE

Branded Apparel Business
Fabric

Super
Premium

Formal wear

Casual wear

FY09
revenue

Others

Rs 12 Cr

Premium
Rs 1,078 Cr
[domestic only]
Formal

Casual

(60%)

(40%)

Rs 26 Cr
Rs 148 Cr
Rs 231 Cr
Rs 103 Cr

Rs27Cr

Neckties &
more

Popular/ mass segment

(20%)
Source: ColorPlus internal data; TechnoPak Advisors, June 2007; CRISIL research

Rs 18 Cr
13

FABRIC BRAND - RAYMOND

25%

1,134

20%
15%

1,138

CAGR 10%
992
774

868

10%

BRAND EQUITY INDEX:

10

5%

0%

2004-05 2005-06 2006-07 2007-08 2008-09

Sales (Rs. Crs.)
EBIT Margins

STRONG 7
BRANDS
6

7.5

BEI Norm: (These scores are comparable

across categories )
Above 5 Equity: 6% of brands
Equity between 3-5 : 17% brands
Equity between 1-3: 57% brands
Equity below 1: 20% brands

Raymond A household name across

India
 60% market share & amongst the
largest globally
 Has shown consistent growth


14

4
Moderate 3
BRANDS
2

2.2
1.1

1.0

Digjam

Donear

Weak 1
BRANDS
0
Raymond Reid &
Taylor

1.5
0.6
OCM

Siyaram

Source: ACNielsens BEI study

BRANDED APPAREL BUSINESS

spending more on
apparel...

The Indian consumer is

getting richer

Indian apparel market

Indian apparel
market

Rs.300K Cr

Population by income group

(Household income in Rs. L/year)

and turning to branded goods

sold through organised retail
100%

130Cr

CAGR
(08-13F)
13%

200

100

60

Unorganized

80

2-5

6%

Organized

>5

112

Rs.246K Cr

246

120
104

Rs.139K Cr

26%

139

0.92

40

100

50

69

20

<0.9

0
0

2003

2008E

2013F

2003

2008E

2013F

Source: NCAER report; KSA Technopak; CRISIL; India Retail Report; Literature search

20%
15%
10%

498

CAGR 21%
263

292

Share of
organized

2008

2013F

24%

44%

570
FY09

358

5%
0%
2004-05 2005-06 2006-07 2007-08 2008-09

Sales (Rs. crs.)

EBIT margin

15

FORMAL WEAR BRANDS

Super Premium & first home grown Entry
level Luxury Mens wear brand
The finest 2ply 200s, cotton shirt launched
by Manzoni for the first time in India.
Product range : formalwear, sportswear
including suits, shirts, trousers and high
quality accessories such as
Handcrafted silk ties,
Pure leather shoes crafted in Europe
Leather belts

Leader in Mens formal wear

Most Admired menswear brand at Images
Fashion Award 2009.
Awarded Super Brand status in 2006-07
Source: SuperBrand Council of India

Most innovative brand of the year 2006-07

Shirts made from Bamboo fiber for the first
time in India by Park Avenue
Stain resistant suits for the first time in
India by Park Avenue
16

CASUAL WEAR BRANDS

Leader in Smart semi formal wear
Nominated for
Best casual wear Brand 2006-07
Best Advertising Campaign

Indias only super premium smart

casual brand
Know for Innovation and creativity
Thermo-fused buttons,
Golf ball wash,
Soft jeans,
Wrinkle free technology,
Stain-free fabric,
Cone dyed technique
17

OTHERS
Zapp! (kids premium wear)
Notting Hill (Popular price segment)
Features a spectrum of mens lifestyle products ranging
from formal wear to relaxed casual wear, targeting young
professionals, between the age group of 22 30 years

Park Avenue Woman

A complete range of Business Wear for
women was launched. 'Park Avenue
Woman' is designed specially for the
working women professionals of today.

ColorPlus WOMAN
An exclusive range of smart-casual clothing
is inspired by the independent, discerning
and multi faceted women of today
18

RETAIL NETWORK

19

RETAIL NETWORK
Retail Space ('000 sq.
ft.)
953

2006-07

1,142

1,257

Pioneer of specialty retailing in

India
One of the largest exclusive retail
network in the textile and apparel
space in India

2007-08

2008-09

Over 1.2 Million square feet of

exclusive retail space

No.of Exclusive Stores

517

548

409

The growth of Like to Like Stores is

5% in FY09 despite challenging
business environment
Retail stores in Middle East,
SriLanka, Bangladesh and Nepal

2006-07

2007-08

2008-09
20

RETAIL NETWORK
Sales through retail network
637
562
450

2006-07

2007-08

2008-09

Sales (Rs. Crs)

Way going forward

Enhance coverage in the Tier 3 and
smaller towns
Drive store efficiencies
Leverage franchisee relations to
expand retail space

21

INVESTING FOR GROWTH

22

INVESTING FOR GROWTH

2006-07

Expansion of Worsted fabric manufacturing facility adding 7 mmpa to the existing

24 mmpa
Launch of new brands for menswear in the popular space
Added 82 stores during the year

2007-08

Entered into Joint Venture to retail premium brand GAS in India

Launch of new brands for womens wear and home living store
Added 113 stores during the year

2008-09

Setup of additional plant with capacity of 1800 suits per day

Expansion of Vapi facility by adding 7 mmpa
Launch of Raymond Finely Crafted Garments readymade apparel under
Raymond brand
New format store for accessories launched under Neckties & More launched
Raymond awarded the most admired textile brand of the year at Images fashion
Awards

2009-10

Strengthen existing market leadership for all brands

Cost rationalization and improvement
Sharpen market segmentation to drive volumes
Enhance coverage in the Tier 3 and smaller towns
23

CONSOLIDATED SALES AND PROFITABILITY

Rs crs.

Net Sales
2,396
Rs. crs.

EBITDA

2,559

2,041

336

350

1,711

283

139

2005-06 2006-07 2007-08 2008-09

2005-06

2006-07

2007-08

2008-09

24

THANK YOU

25