Raymond & Raymond Lifestyle: Company Stock Analysis

Raymond Lifestyle and Raymond Ltd are both part of the Raymond Group, but they serve distinct purposes and focus on different aspects of the business. Here’s a detailed comparison of their products and services:

1. Raymond Ltd

Overview:
Raymond Ltd is the parent company of the Raymond Group and focuses on textile manufacturing and industrial applications. It is known for its role in producing high-quality fabrics and materials for various markets, including retail and industrial sectors.

Products and Services:

1. Textile Manufacturing:

• Premium suiting fabrics (wool, polyester, linen, blends).
• Shirting fabrics for domestic and export markets.
• Specialized fabrics for uniforms and industrial applications.

1. Industrial Textiles:

• High-performance materials for industries like automotive, engineering, and construction.
• Technical textiles for industrial and functional uses.

1. Raw Materials:

• Production of yarns and other base materials used in textile and garment manufacturing.

1. Exports:

• Focuses on exporting premium fabrics and materials to international markets.

Core Focus:
Raymond Ltd primarily emphasizes textile manufacturing, producing raw materials, and maintaining a leadership position in fabric innovation and exports.

2. Raymond Lifestyle

Overview:
Raymond Lifestyle is the retail and consumer-facing division of the Raymond Group, focusing on selling finished products, including ready-to-wear apparel, custom-tailoring solutions, and lifestyle products.

Products and Services:

1. Apparel:

• Ready-to-wear garments under brands like Raymond Ready-to-Wear, Raymond Premium Apparel, and ColorPlus.
• Formal wear, casual wear, ethnic wear, and occasion wear.

1. Custom Tailoring:

• Made-to-Measure (MTM) services for personalized suiting and shirting.
• Offering customers a bespoke tailoring experience with fabrics from Raymond Ltd.

1. Retail Stores:

• Operates flagship Raymond Shops and exclusive brand outlets (EBOs) where customers can buy fabrics, garments, and accessories.

1. Accessories:

• Offers a range of lifestyle products such as ties, cufflinks, belts, wallets, and more to complement apparel.

1. Ethnic Wear:

• Focus on premium ethnic wear for weddings and special occasions.

1. Fragrance and Grooming:

• Diversified into personal grooming products, including deodorants, perfumes, and shaving kits.

Core Focus:
Raymond Lifestyle is consumer-oriented, offering finished products and personalized services to retail customers, focusing on style, convenience, and luxury.

Key Differences Between Raymond Ltd and Raymond Lifestyle

The market share of Raymond Ltd and Raymond Lifestyle in their respective product portfolios can vary as they cater to distinct market segments. While both are part of the Raymond Group, they focus on different areas—Raymond Ltd on manufacturing and textiles and Raymond Lifestyle on consumer-facing products like apparel and retail. Here’s an overview based on publicly available information and industry insights:

1. Raymond Ltd (Textile Manufacturing and Industrial Textiles)

Market Share:

• Suiting and Shirting Fabrics:
• Raymond Ltd holds a 60% market share in the organized suiting fabric market in India, making it a market leader.
• It is recognized as one of the top exporters of high-quality wool-blended and cotton fabrics to international markets.
• Textile and Fabric Exports:
• Raymond exports to over 55 countries, with strong demand in markets like the USA, Europe, and the Middle East.
• A significant portion of its revenue comes from the textile division, with fabrics contributing to around 40-45% of the company’s overall revenue.
• Industrial Textiles:
• A smaller but growing segment, focusing on technical textiles, automotive components, and other performance-driven applications.

Key Insights:

• Raymond Ltd dominates the B2B segment, supplying fabrics to fashion brands, retailers, and garment manufacturers.
• Its leadership in fabric manufacturing ensures that it captures a significant share of the organized textile market in India.

2. Raymond Lifestyle (Apparel and Retail)

Market Share:

• Ready-to-Wear Apparel:
• Raymond Lifestyle (now under Raymond Consumer Care) holds a notable position in the branded apparel market with key brands:
  • Park Avenue: ~8-10% share in the organized premium men’s formal wear market.
  • ColorPlus: A strong player in casual and semi-formal menswear, with a focus on high-quality, versatile clothing.
  • Raymond Ready-to-Wear: Competes with brands like Van Heusen and Arrow in premium formal wear.
• Retail Presence:
• Over 1,500 exclusive retail stores and a network of 20,000 multi-brand outlets across India.
• A 50% market share in the men’s suiting fabric-to-garment retail chain, a unique strength compared to standalone apparel brands.
• Made-to-Measure (MTM):
• One of the leading custom tailoring services in India, capturing a 20-25% share in the premium bespoke tailoring segment.
• Fragrances and Grooming:
• A newer product category with growing market share but still a smaller contributor to revenue compared to apparel and textiles.

Key Insights:

• Raymond Lifestyle is a strong player in men’s formal wear, leveraging its heritage and brand equity in suiting and shirting.
• Its retail presence and diversified product portfolio allow it to compete effectively with other premium and mid-range brands like Van Heusen, Louis Philippe, and Allen Solly.

Market Contribution (Segment-Wise)

Overall Comparison of Market Focus:

1. Raymond Ltd dominates the textile market, with a focus on fabrics and industrial textiles, making it a key player in both domestic and export markets.
2. Raymond Lifestyle leverages Raymond’s brand equity in consumer-facing segments like ready-to-wear apparel, custom tailoring, and lifestyle products.

Thank you for pointing that out. Here’s the detailed shareholding pattern for Raymond Ltd and Raymond Lifestyle Ltd (now both publicly listed entities) as per the most recent available disclosures:

1. Raymond Ltd

Raymond Ltd is the flagship company of the Raymond Group, focusing on textiles, suiting, shirting fabrics, and industrial textiles.

Promoter Shareholding Pattern (Raymond Ltd):

• Promoter and Promoter Group Holding: 47.86% (as of the latest stock exchange filing).
• Promoters include the Singhania family and associated entities, with Gautam Hari Singhania as the key promoter.

Other Shareholders:

• Foreign Institutional Investors (FIIs): 11–12%
• Domestic Institutional Investors (DIIs): 6–7%
• Public and Retail Investors: 30–35%
• Employee Trusts: A small percentage held under ESOPs.

Raymond Ltd retains a strong promoter presence, reflecting the Singhania family’s continued control over the company.

2. Raymond Lifestyle Ltd

Raymond Lifestyle Ltd, which focuses on branded apparel, retail, and Made-to-Measure (MTM) services, was demerged as part of the Raymond Group restructuring. It is now independently listed, separating its consumer-facing business from Raymond Ltd’s traditional textile and industrial focus.

Promoter Shareholding Pattern (Raymond Lifestyle Ltd):

• Promoter and Promoter Group Holding: Approximately 50%–55% (based on recent filings after the demerger).
• The Singhania family and associated promoter entities maintain a majority stake.

Other Shareholders:

• Public Shareholding: Around 30%–35%.
• Institutional Investors:
• Mutual Funds and DIIs: 5–8%
• FIIs: 8–10%
• Employee Trusts and ESOPs: Small allocation, incentivizing employee ownership.

Raymond Lifestyle’s demerger allows investors to evaluate the growth potential of its branded apparel and retail segments separately from Raymond Ltd’s industrial and textile operations.

Key Differences in Shareholding Patterns