homebusiness Newscompanies NewsRaymond's shirt segment not impacted due to high cotton prices as wedding season kicks in
Raymond's shirt segment not impacted due to high cotton prices as wedding season kicks in
As India get into the festive season, CNBC-TV18 spoke to companies across industries to gauge what demand is looking like. Amit Agarwal, Group CFO at Raymond discuss the trends they are seeing ahead of festive season in India.
As the festive season kicks in, the consumption-reliant sectors are betting on a demand uptick. This is after many fast-moving consumer goods (FMCG) companies catering to mass consumption items reported poor sales volumes in the April-May-June quarter.
CNBC-TV18 is speaking to companies across industries to gauge what demand looks like. According to Amit Agarwal, Group CFO at Raymond, the shirting segment margins have not been impacted due to elevated cotton prices and it expects the current quarter to reflect this.
“If I look at my shirting fabric across my portfolio, we need cotton only for the shirting portfolio. There has not been any margin impact per se, maybe a lack of quarter or two, but not really impacted on the margins per se,” he said.
The company stays bullish on festive demand and expects the demand uptick to continue after that as well.
"Immediately after the festive season, after the Diwali and Dussehra, you get on to the wedding season,” he reasoned.
Raymond has a widespread network in 600 cities and towns and the management is banking on this reach for its last mile push.
The export segment is also looking healthy with the company claiming that its orderbook is full till the end of the current fiscal. The China Plus One strategy added to this.
“Some of the customers which were not coming to us earlier, maybe five-seven years back because of the Chinese buying, they have really come to us and started to give the prices which we wanted and maintaining our margins,” Agarwal said.
For the full interview, watch the accompanying video
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