'The retail business was somewhat slow initially, but it has picked up over the past few days. Following Makar Sankranti, there is a renewed sense of positivity.'
Urban consumption has shown some green shoots since Makar Sankranti and is expected to improve for the rest of the year, says Gautam Singhania, chairman and managing director of Raymond.
In an in-person interview with Sharleen D'Souza and Dev Chatterjee/Business Standard, Singhania says the group is moving to an asset-light strategy.
How is consumption playing out in rural and urban areas at your retail outlets?
The retail business was somewhat slow initially, but it has picked up over the past seven to eight days.
Following Makar Sankranti, there is a renewed sense of positivity.
With the wedding season continuing until May, we don't expect any major challenges.
Overall, India is on the right path, and I'm optimistic about the strengthening India-US relationship, which presents promising opportunities for businesses.
While there may be occasional speed bumps, the road ahead looks promising.
Do you continue to be on track with your expansion plans for Raymond Lifestyle?
Growth may be slightly slower given the current economic environment. Our expansion targets might be delayed by about six months, but our vision remains clear.
We have set a goal of 900 stores and have already identified our expansion locations --it's just a matter of timing.
While the economy has slowed over the past few months, there is potential for a rebound.
In fact, under the right conditions, we could even accelerate our target. Expansion is always a dynamic process.
Do you have plans to expand into other businesses, considering Corporate India is not expanding as quickly due to weak demand?
Government spending has been sluggish, and that needs to improve. Sentiment is a bit weak, but that doesn't mean things will remain the same.
On the flip side, cement companies are doubling their capacity, showing confidence that this slowdown is transitory. Fundamentally, it's just a short-term lag.
We are not investing in capital expenditure as we transition to an asset-light model. However, if you look at companies like Adani, they are expanding aggressively.
Airlines are appreciably increasing their fleet sizes, and the real estate sector is creating a multiplier effect -- lifting jobs, cement consumption, and steel demand.
Growth may not be uniform across all sectors, but it is happening.
There are a lot of expectations that India would be a big beneficiary because of the political crisis in Bangladesh.
Have you noticed any rise in demand, with customers turning to Indian companies like yours?
We've certainly started benefiting from that. Some things happen faster, some happen slower.
But it's not so much in my industry -- we are in garments, while they are in knits, and we focus more on structural garments.
However, many of our customers are now spending more time in India to understand the market.
How do you see demand playing out in the real estate sector?
I believe there is a lot of heat in the real estate industry, and that's a concern.
Over the past two to three years, the sector performed exceptionally well, leading many to adopt an aggressive approach.
However, we are now seeing a slowdown -- especially in the sales of super luxury apartments, which will have an impact.
In Mumbai, rents are rising due to a surge in redevelopment projects, forcing many to seek rental homes.
However, in five years, those redeveloped apartments will return to the market.
The big question is whether demand will be strong enough to absorb that supply when the time comes -- I'm not sure.
Are you recalibrating your plans or strategy in real estate?
We have a clear strategy of staying in the affordable luxury space, and we will stick to it.
Feature Presentation: Aslam Hunani/Rediff.com
© 2025