Raymond has great plans for India's wedding market
Tuesday, 17 January 2023, 15:21 IST
The wedding sector is still relatively unorganised, with only a few men's wedding attire retailers. These stores include Aditya Birla Fashion Retail (ABFRL), which specialises in non-ethnic clothes and carries names like Louis Philippe and Allen Solly, and Vedant Fashions, which has Manyavar as its flagship brand. ABFRL has revenues that are about 30% bigger but is valued at 2.5 times Raymond, while Vedant Fashions has revenues that are almost one-sixth that of Raymond but is valued at three times Raymond's amount.
Raymond plans to capture a higher share of India's wedding market by leveraging its brand and distribution network, the media report stated. The report mentioned that it has rolled out 45 ethnic wear stores under the brand Ethnix over the past 18 months. The number of outlets is expected to increase to 80 by the end of FY23 and 150 by the end of FY24, the report added.
This will be in addition to the existing network of 1500 stores, some of which will also be selling ethnic wear products. According to a recent research by brokerage ICICI Direct, the country’s wedding market size for the months of November and December was estimated to be INR 3.8 lakh crore, of which branded apparel formed INR 50,000 crore.
Other major categories include jewellery at INR 90,000 crore, consumer durables at INR 30,000 crore, and hotels at INR 7,000 crore. The wedding industry remains mostly unorganised with a handful of men’s wedding clothing retailers including Vedant Fashions with the flagship brand, Manyavar and Aditya Birla Fashion retail (ABFRL) with its brands such as Louis Phillipe and Allen Solly, mainly in the non-ethnic wear.
Ethnic wear company, Vedant Fashions, has revenue around one sixth of that of Raymond but commands three times its valuation, while ABFRL has nearly 30 per cent higher revenues and is valued at two and a half times of Raymond.
The valuation gap may narrow if Raymond manages to deliver consistent growth in this segment. Raymond’s existing textiles, shirtings and apparels businesses together accounted for two-third of the revenues in the first half of FY23 growing by 69 per cent year-on-year. This also includes non-wedding sales, but does not reflect the ethnic wear sales. During that time, Vedant Fashions' and ABRFL's revenue increased by 59% and 107%, respectively. Following Covid, Raymond has made a significant recovery. It also initiated other collaborative development projects in Mumbai and joined the real estate market using its Thane land piece. These projects are land-owned, have a net positive cash flow, and are completed ahead of schedule.
Raymond plans to capture a higher share of India's wedding market by leveraging its brand and distribution network, the media report stated. The report mentioned that it has rolled out 45 ethnic wear stores under the brand Ethnix over the past 18 months. The number of outlets is expected to increase to 80 by the end of FY23 and 150 by the end of FY24, the report added.
This will be in addition to the existing network of 1500 stores, some of which will also be selling ethnic wear products. According to a recent research by brokerage ICICI Direct, the country’s wedding market size for the months of November and December was estimated to be INR 3.8 lakh crore, of which branded apparel formed INR 50,000 crore.
Other major categories include jewellery at INR 90,000 crore, consumer durables at INR 30,000 crore, and hotels at INR 7,000 crore. The wedding industry remains mostly unorganised with a handful of men’s wedding clothing retailers including Vedant Fashions with the flagship brand, Manyavar and Aditya Birla Fashion retail (ABFRL) with its brands such as Louis Phillipe and Allen Solly, mainly in the non-ethnic wear.
Ethnic wear company, Vedant Fashions, has revenue around one sixth of that of Raymond but commands three times its valuation, while ABFRL has nearly 30 per cent higher revenues and is valued at two and a half times of Raymond.
The valuation gap may narrow if Raymond manages to deliver consistent growth in this segment. Raymond’s existing textiles, shirtings and apparels businesses together accounted for two-third of the revenues in the first half of FY23 growing by 69 per cent year-on-year. This also includes non-wedding sales, but does not reflect the ethnic wear sales. During that time, Vedant Fashions' and ABRFL's revenue increased by 59% and 107%, respectively. Following Covid, Raymond has made a significant recovery. It also initiated other collaborative development projects in Mumbai and joined the real estate market using its Thane land piece. These projects are land-owned, have a net positive cash flow, and are completed ahead of schedule.
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