Following the political shift in Bangladesh, Raymond, the renowned textile and clothing company, has reported a surge in inquiries from international businesses, according to the Times of India. The company sees this as a prime opportunity to strengthen its operations, particularly in India.
When questioned about the possibility of moving some of Raymond’s garment manufacturing from Bangladesh to India, Chairman and Managing Director Gautam Singhania expressed optimism. “We are hoping so. We are seeing the inquiries. It obviously needs a little bit of time, but we are certainly seeing positive signs on that,” he stated.
Singhania highlighted India’s advantages, noting that Raymond’s end-to-end supply chain, encompassing both fabric and garment production, positions the country as a more favorable base. This integrated supply capability not only streamlines production but also accelerates final delivery for international brands, making India a compelling choice despite its higher labor costs compared to Bangladesh.
“While Indian labor may be more expensive than in Bangladesh, consider the overall picture. We offer both fabric and end-to-end supply. This saves time, and for that, you pay a premium,” Singhania explained.
He further emphasized that Bangladesh lacks the fabric supply chain that India boasts, presenting a significant opportunity for India to capitalize on its well-established fabric base. “Bangladesh only has garmenting bases, whereas India has the complete supply chain,” he added.
Raymond’s recent capacity expansion has also come online at an opportune time, according to Singhania, who mentioned that the company is continuously exploring new opportunities. He also pointed out that India’s political stability, large middle class, and robust consumption and manufacturing capabilities make it an attractive business environment.
The company is also in the process of listing Raymond Lifestyle, following its demerger from the parent company, which will consolidate all apparel-related businesses of the nearly century-old Raymond group.
In addition to Bangladesh, India is emerging as a preferred sourcing destination as global companies adopt the ‘China+1’ strategy. Singhania noted, “This strategy is benefiting us, strengthening relationships with existing customers, and opening doors to new markets and customer acquisition.”
He also underscored the importance of diversification in business strategies. “Everybody needs a hedging strategy. Nobody would like to put all the eggs in one basket,” he remarked.
Moreover, Singhania contrasted India’s focus on value and quality with China’s emphasis on quantity. “China is about quantity—if you want cheap quality, go to China. India, however, is about value and quality. They are volume; we are value,” he asserted.
Raymond’s Garmenting Unit, which supplies high-value clothing products to leading international brands, is a key player in this shift. According to the company’s latest annual report, Raymond has the capacity to produce 7.5 million pieces of jackets, trousers, and shirts in India, with an additional 3.2 million units produced in Ethiopia.
