Corporate India is beginning to feel the pinch of the surging second wave of Covid-19 infections and the local lockdowns. However, Gautam Hari Singhania, chairman and managing director of Raymond, tells The Telegraph in an interview that in the current circumstances the company will consolidate and strengthen its existing business. As the vaccination drive speeds up, Singhania hopes the situation will stabilise.

• We are now witnessing a second wave of Covid-19. Back in February, companies were optimistic, but from March things have changed. What is your outlook for Raymond?

The government has declared lockdown in some states because of the rising cases but the whole country is not under lockdown. Right now it’s a very dynamic situation. Some of our manufacturing plants are shut, impacting various businesses. Hence, we have to wait and watch as to how the situation is developing. We are witnessing a huge spurt in cases and various parts of the country are under a partial lockdown, impacting retail operations. As the vaccination drive is picking up and with the announcement of vaccination for over 18 years, the situation should stabilise sooner than later.

• What would be your recommendation or request to the central or state governments under the current circumstances?

I would like to say that the government is doing their best to safeguard us as Covid is not going to go away anytime soon and we have to work on the systems and procedures to live with it. On one hand, the manufacturing units are being asked to keep open for the recovery of the economy, but on the other hand the retail shops are shut. One cannot just manufacture products and put in inventory. We need to sell products to expand the economy. Therefore, my recommendation is to keep the retail shops open with utmost safety and right protocols. There is a need to ensure that we continue to take precautions like wearing masks and maintain social distancing along with rapid vaccination to curtail the spread

• Are manufacturing units open?

A few states are still functioning so some manufacturing plants are open and some are shut because of the imposed lockdown. Moreover, we have to see the duration of the lockdown as it will build the inventory, hence impacting manufacturing.

• How is Raymond’s garment business faring?

Apparel business is definitely impacted as customers have stopped stepping out because of the rise in Covid cases. A lockdown and curfew has been imposed in metro cities such as Maharashtra and Delhi, where we have the maximum flagship stores and the footfall at these stores are near to none. Unlike the first wave, the online platforms are also affected because of restricted movements of delivery agents as only essential products are allowed to be delivered.

• Are you going the omni-channel way. Did it work for Raymond?

Irrespective of the lockdown, Raymond has developed a strong omni channel capability. Given our expansive store network spanning across more than 600 towns, we are well positioned to service our consumers across India. Our responsibility is to provide our customers with a safe shopping experience. During the lockdown, for consumers who are hesitant to step out of their homes but are keen on buying products from us, we showed our products over video calls. Raymond introduced concierge services during the lockdown last year too. Today at our more than 1,500 stores, we follow stringent hygiene and each staff member has been trained to be compliant with these new working norms.

• What lessons did you learn last year?

(a) Resetting the business from scratch and starting all over again.

(b) Resilience and agility are the key to success.

(c) Continued focus on cost rationalisation and effective working capital management.

• With most people working from home (WFH), there is an increased demand for casual wear. Has this affected the formal segment?

Raymond witnessed an increase in sales during the wedding and festive season in the third quarter last year. The formal segment has witnessed a recovery from November to March. There was a positive momentum. However, with the on-going second wave, there are certain restrictions announced for weddings and festivities. We will have to wait and watch how the situation evolves till the infection numbers show a downward trend. As far as the WFH scenario is concerned, we introduced a special WFH line that includes an athleisure collection.

• What is your approach to the new normal?

We have set standard protocols and procedures at the stores, which give customers a safe shopping experience. For consumers hesitant to step out of their homes, we offered the video call service that received a good traction in the ongoing wedding season. My approach is go omni-channel, go digital and enhance your customer service.

• What are your expansion plans?

There is no expansion plan as we continue to consolidate. Last year was full of disruptions and the start of the current fiscal is also shaky with the second wave of Covid coming in. Therefore, the focus will be to strengthen the existing businesses.

• How are your other businesses faring?

Our B2B businesses such as engineering and auto components have almost come back to pre-Covid levels, and real estate has been doing well for us as we are currently the leading developer in the Thane region. We are continuously adding products in our FMCG portfolio with changing customer sentiments. We launched an exciting range of products in the personal and home hygiene segments along with a new range of fragrances.