March 4, 2021

raymond job cuts: Raymond, India’s high suit-fabric maker, cuts jobs as individuals work at home

By Nikhil Patwardhan and P R Sanjai

Raymond Ltd., one of many world’s greatest producers of worsted wool material used to make high quality fits, is chopping prices by greater than a 3rd as individuals shelter at house from the coronavirus outbreak.

The Mumbai-based firm is decreasing jobs, rents, and advertising and marketing prices to lower bills by as a lot as 35% for the monetary 12 months began April 1, Chairman Gautam Hari Singhania stated in a digital interview final week. It has additionally sought to freeze mortgage repayments below a one-time program provided by the central financial institution.

“Raymond has taken this as a chance to re-set,” Singhania stated. “What we all know is it is a disaster and we are going to stand robust.”

The shift to on-line engagements has slammed demand for enterprise clothes worldwide, tipping the two-century-old Brooks Brothers Group Inc. out of business this month. Raymond, itself nearly a century outdated having began in 1925 with a small wool mill on the outskirts of what was then Bombay, has seen its shares undergo the largest loss amongst world friends this 12 months because the virus outbreak intensified.

India went on lockdown March 25, and retailers and workplaces in elements of the nation are nonetheless shuttered. Raymond has deferred its capital expenditure reminiscent of retailer openings, renovations and expertise upgrades, in response to the corporate’s annual report.

Key Numbers:

  • Gross sales fell 29% in April-March; excluding the impression of the pandemic and a correction in Raymond stock, income dropped 1% in contrast with the identical interval a 12 months earlier
  • Firm has re-opened 1,332 out of 1,638 shops as of July 2 and is seeing about 45% of pre-pandemic gross sales, Vintage Inventory Broking Ltd. says in a notice to shoppers citing a name with Raymond administration
  • Vintage maintains its purchase score on the inventory with a goal value of 427 rupees, versus 245.2 rupees on Tuesday

For now, Raymond is utilizing its Bengaluru manufacturing facility to fabricate private protecting gear for well being staff, Singhania stated. He added that the corporate provides a spread of merchandise not like bespoke go well with makers he competes with in different elements of the world.

“If you find yourself a robust model, recession at all times performs in your favor,” Singhania stated. “Brooks Brothers supplies a really particular and formal vary of clothes, not like us, so it doesn’t trouble us a lot.”