Raymond Limited , a prominent Indian textile and apparel company, has taken steps to strengthen its board with the recommendation of two new Independent Directors. The company's Nomination and Remuneration Committee (NRC) has put forward the names of Mr. Tikka Singh and Mr. Ajoy Mehta for five-year terms, subject to necessary regulatory approvals.

Key Developments

• The NRC approved the recommendations on August 18, through a resolution passed by circulation.
• Mr. Tikka Singh (DIN: 06521398) and Mr. Ajoy Mehta (DIN: 00155180) are the proposed candidates for Independent Director positions.
• Both appointments are for a first term of five years each.

Regulatory Approval Process

The appointment of these directors is not immediate and faces a unique regulatory hurdle due to Raymond's diverse business interests:

• Raymond Limited operates non-scheduled air transport services, which necessitates additional security measures.
• The company must obtain prior security clearance from the Ministry of Home Affairs (MHA) through the Ministry of Civil Aviation for the appointment of directors.
• The Board of Directors will only consider the appointments after receiving the necessary approval from the MHA.

Compliance with Stock Exchange Requirements

Raymond Limited has affirmed that the proposed appointments of Mr. Singh and Mr. Mehta comply with the requirements set forth by stock exchange circulars:

• NSE/CML/2018/24
• BSE/LIST/COMP/14/2018-19 (both dated June 20, 2018)

Next Steps

1. The company will await security clearance from the Ministry of Home Affairs.
2. Upon receiving clearance, the Board of Directors will consider the appointments.
3. If approved, Raymond Limited will submit a detailed intimation as required under SEBI Listing Regulations and the SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11.

Investor Relations

In related news, Raymond Limited has announced its participation in an upcoming investor conference:

• Event: "Powering Through - India on the Global Stage" Conference
• Date: August 22
• Mode: Virtual Group Meeting
• Hosted by: Centrum Orion IV

The company will present its Q1 Results at this conference, with the presentation already available on the company's website and submitted to the stock exchanges.

As Raymond Limited moves forward with these potential board additions and engages with investors, stakeholders will be watching closely for the outcomes of the regulatory approval process and any impacts on the company's governance structure.

Raymond , a prominent Indian textile and apparel company, is actively exploring strategic alternatives to mitigate the potential impact of US tariffs on its garment business. The company is considering shifting production to countries like Vietnam, Bangladesh, and Ethiopia to maintain its competitive edge in the US market.

US Market Exposure and Current Production

Group CFO Amit Agarwal revealed that 50-55% of Raymond's garment revenue is derived from the US market. The company's total garment business generates Rs 550.00 crore, with Rs 400.00 crore coming from India and Rs 150.00 crore from its Ethiopian plant. The Ethiopian facility currently benefits from a lower 10% duty rate, making it an attractive production hub for the company.

Strategic Production Shift

To address the potential tariff challenges, Raymond is evaluating several options:

1. Increasing Ethiopian Production: The company has the capacity to shift an additional Rs 50.00-75.00 crore worth of production from India to Ethiopia.
2. Exploring New Markets: Raymond is considering exporting fabrics to Bangladesh and Vietnam for garment manufacturing, potentially tapping into these countries' established garment industries and favorable trade agreements.

Timing Challenges and Market Outlook

Agarwal highlighted the timing challenges faced by US retailers, particularly with the upcoming Thanksgiving and Christmas sales seasons. With production cycles spanning 5-6 months, any immediate changes could impact the supply chain for these crucial retail periods.

The CFO expects the situation to stabilize by the end of the second quarter of FY26, indicating a cautious but optimistic outlook for the medium term.

Domestic Market Focus

Despite the challenges in the US market, Agarwal emphasized that 85% of Raymond's business remains in India. The company anticipates a stronger domestic performance, driven by the festive and wedding seasons, which traditionally boost demand for textiles and apparel.

Market Response

The news of Raymond's strategic considerations appears to have had a slight negative impact on investor sentiment. Raymond shares closed 1.59% lower at Rs 633.00 on the day of the announcement.

As Raymond navigates these international trade challenges, the company's ability to adapt its production strategy and leverage its strong domestic presence will be crucial in maintaining its market position and financial performance.