Raymond Group, a leading player in India's textile and apparel industry, is poised for significant growth following the anticipated India-UK Free Trade Agreement (FTA), according to the company's Chief Financial Officer, Amit Agarwal. The FTA is expected to have a transformative impact on India's textile sector, potentially doubling Raymond's UK export revenue within the next 18-24 months.

FTA to Level the Playing Field

Agarwal highlighted that the FTA would create a more equitable competitive landscape for Indian exporters. Currently, countries like Bangladesh, Vietnam, and Indonesia enjoy zero-duty benefits in the UK market, giving them a significant advantage over Indian textile manufacturers. The new agreement is set to eliminate this disparity, allowing Indian companies to compete on equal footing.

Overcoming Previous Limitations

The CFO pointed out that the textile industry has historically operated on thin margins, with high duties further constraining export potential. As a result, exports were largely limited to high-value products. The FTA is expected to alleviate these constraints, opening up opportunities for a wider range of textile exports from India to the UK.

Raymond's Strategic Advantage

Raymond Group is particularly well-positioned to capitalize on the FTA, thanks to its integrated supply chain. Agarwal emphasized that this vertical integration, coupled with the company's lead time advantages, will be key factors in driving growth in the UK market.

Projected Growth and Future Prospects

With the implementation of the FTA, Raymond Group is projecting a significant boost in its UK export revenue. Agarwal stated that the company expects to double its exports to the UK over the next 18-24 months, underscoring the substantial impact the agreement is likely to have on Raymond's international business.

Broader Implications for India's Textile Industry

Beyond the immediate benefits for Raymond Group, Agarwal views the India-UK FTA as a stepping stone for broader international trade opportunities. He suggested that this agreement could pave the way for future negotiations with the European Union, potentially leading to even greater export opportunities for India's textile sector.

The CFO's optimistic outlook reflects the potential for the FTA to not only boost Raymond Group's performance but also to strengthen the export capabilities of India's entire textile industry. As the agreement moves closer to implementation, it will be crucial for textile manufacturers to prepare for increased international competition and capitalize on the new opportunities in the UK market.

Raymond , the renowned textile and apparel company, is making waves in the stock market as it prepares to list its real estate subsidiary, Raymond Realty Ltd (RRL), on July 1. The announcement has sparked investor interest, driving Raymond's stock price up by 7% to Rs 756.10.

Demerger and Share Allocation

The listing of RRL follows a strategic demerger, where existing Raymond shareholders have been allocated shares in the new entity. For each share held in Raymond, investors will receive one share of Raymond Realty Ltd, aligning shareholder interests across both businesses.

Projected Listing Price

SBI Securities, a leading financial services firm, has provided insights into the potential listing price of RRL. According to their projections, RRL shares are expected to debut on the stock exchanges at a price ranging between Rs 897.00 and Rs 1,430.00. This wide range suggests significant market anticipation and potential volatility in the initial trading sessions.

Market Impact

The news of the impending listing has already had a notable impact on Raymond's stock performance. The 7% surge in Raymond's share price to Rs 756.10 reflects investor optimism about the value unlocking potential of this corporate action.

Looking Ahead

As July 1 approaches, market participants will be closely watching the listing of Raymond Realty Ltd. The real estate subsidiary's market debut will not only provide a new investment avenue for shareholders but also allow Raymond to potentially unlock value in its real estate portfolio.

Investors and analysts will be keen to see how the market values RRL independently and how this move affects the overall valuation of the Raymond Group. The listing also marks a significant step in Raymond's strategy to diversify its business interests and capitalize on its real estate assets.