Raymond Lifestyle, which demerged from the parent company and listed on the bourses earlier this month, has the potential to reach a turnover of ₹10,000 crore over the next two-three years.

The company had closed FY24 with a consolidated turnover of ₹6,691 crore and an EBITDA (earnings before interest, taxes, depreciation and amortisation) of ₹1,093 crore.

In an interaction with The Telegraph on Monday evening, Gautam Singhania, chairman of the Raymond group, said the company has set a growth trajectory for the Raymond Lifestyle business.

“We want to achieve a topline growth of 15 per cent and EBITDA of 20 per cent every year,” Singhania said.

“We have expanded our capacity in the garments business and invested ₹200 crore in the last two years. Our capacities have come in line at the correct time. There is a demand coming. We have no major capex going forward. But, over a period of time depending on how India plays out in the global world for garmenting, if we have to buy some capacity or put up some capacity, we could always look at that,” Singhania said.

He said that domestic demand as well as export potential backed by retail expansion will be key growth drivers. “The FTAs (free trade agreements) that are going to be signed will be beneficial for the industry,” said Singhania. Industry analysts expect significant upside for textiles and apparels from the new trade agreements with the UK, EU and Australia.

Singhania further said that the developments in Bangladesh are expected to be positive for the Indian textile sector, particularly for domestic integrated players such as Raymond. “With the current crisis there is a big opportunity for India and we are already seeing a lot of international customers moving to India,” he said.

Raymond Lifestyle has a retail network of around 1,500 stores and over 650 additional stores are expected to be added across brands over the next two-three years. “We are also increasing our distribution in the GCC countries and opening more stores there,” Singhania said.

Following the demerger of the lifestyle business, the engineering and real estate business of the group is now under parent company Raymond.

The real estate business is also expected to be demerged by July-August of 2025 and Singhania is bullish on the prospects of the real estate vertical, which contributes around 20 per cent to the overall business.

“We are currently operating in Mumbai. We have four joint development agreements in Mumbai. One construction is at an advanced stage. Three will start within the next one year,” he said, adding that there is a massive redevelopment opportunity coming up.

“My personal view is that Mumbai also could be a $1.5-2 trillion opportunity and that is an opportunity for a company like Raymond with a strong brand and execution capabilities,” he said.

He added that the demerger of the three companies is for the purpose of value creation. “The market loves pure play companies. An investor who wants to invest in lifestyle does not want to invest in real estate and vice versa.”