The leading textile and clothing company, Raymond, said that in the unfolding of the crisis in Bangladesh, it might grab onto new opportunities and shift its operations to India.
What Does The Company Say?
The Chairman and MD of Raymond, Mr. Singhania, has said that they have received positive signs from India and they might hence be able to take advantage of the present situation.
What Benefits Would India Have For Raymond?
India is equipped with better end-to-end supply capabilities and hence will save time for the company’s fabric as well as garment business. It will also make delivery for international brands much faster and hence benefit the company. Unlike Bangladesh, India has a great fiber supply with a strong fabric base, this is expected to benefit Raymond.
But Are There Any Disadvantages?
There is indeed a disadvantage because the cost of labor in India is higher than the cost of labor in Bangladesh. So, the company will have to increase its expenditures.
But Has This Discouraged Raymond?
However, Raymond is still firm in utilizing this opportunity. Despite higher labor costs, India is still preferred greatly over Bangladesh, as India has a fabric base and end-to-end supply facilities. This will help the company expand operations as well as save its time. Other than that India is politically stable and it has a large population of potential customers for the garments of the third largest suit-making company. India has a huge number of middle-class people who have great consumption and also skills for manufacturing. Raymond has also invested in a company, ‘Raymond Lifestyle’ which is again a clothes based company and that company is expected to get listed on the markets this week.
How Does China Fare Out In This Situation?
Raymond has been focusing on its China+1 strategy, where it is attempting to diversify and not put all of its eggs in one basket. India fares out well here and will help the company develop stronger relations and grab chances. Also, the company has said that the Indian quality of work is superior to the Chinese one. China is a more suitable destination for quantity but for quality, India wins the race.
According to the company’s yearly report, it has the capacity to manufacture almost 7.5 million pieces of jackets, trousers and shirts in India. This would make it a very lucrative choice.
