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Homegrown textiles and apparels major Raymond expects to reap the benefits of likely low imports from China in view of the COVID-19 pandemic, the company said in a statement on Tuesday.

According to a PTI report: It is also looking at long-term funding and alternate working capital availability to manage liquidity as business restarts with gradual easing of lockdown.

Disclosing its current status of operations post lockdown, the company said commodity prices have softened due to the pandemic. This would lower the input costs and support the overall profitability this fiscal.

”Easing of commodity prices such as of cotton and wool are likely to benefit the company going forward along with softened oil prices,” it said.

Referring to expected low imports from China in the present scenario, Raymond said it “is expected to reap benefits of low imports from China as global supply chain will witness a shift. The company expects the exports to resume soon with opening up of global economies.”

Raymond also said it has undertaken cost rationalisation and control measures related to ”manpower, sales and marketing, rentals and others to minimise the impact on business”.

On resumption of business, Raymond said gradual reopening began from lockdown 3.0 onwards, wherein the government permitted sale of certain nonessential items in specified geographies.

Currently, 1,332 stores have reopened adhering to all COVID-19 related guidelines for employees and customers, it added. Commenting on its liquidity position, Raymond said it is taking all requisite measures to manage liquidity that includes cost reduction, fund management and focus on collections.

The company is looking at all available options that include long term funding and alternate working capital availability to manage liquidity in the current situation, it added. The company is in the process of taking steps to issue non convertible debentures (NCDs) that would support the rebalancing of its debt mix favouring long-term debt, it said adding that in June quarter of 2020-21, the company has raised Rs 145 crore through NCDs at market benchmarked rates.

“In line with the prevailing market conditions and unprecedented challenges, the company has undertaken the process of cost rationalisation & various cost control measures related to manpower, sales and marketing, rentals and others to minimise the impact on business,” the company said.

On operations of manufacturing plants, Raymond said its suiting and shirting fabric manufacturing units continue to remain shut due to subdued demand. ”Production planning and reopening of plants in a phased manner is under evaluation,” it said.

The company’s garmenting facilities and tools, hardware and auto components segments have partially resumed operations, it added. On Monday, Raymond declared its quarterly and annual results ended March 31, 2020.

Raymond reported a consolidated net loss of Rs 69.10 crore for January-March 2020 impacted by COVID-19 and the lockdown.

Revenue from operations was down 29.30 per cent to Rs 1,278.65 crore during the quarter under review as against Rs 1,808.71 crore in the corresponding period of the previous fiscal.

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What are the latest developments and new innovations at Liva?

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Especially for the denim segment these small towns hold immense potential. Traditionally, these places were dominated by the unorganised sector. As exposure grew over the years, consumers have exhibited a high inclination towards brands. “Thanks to Internet penetration – the fashion exposure of the lower tiers is growing exponentially. The limited access to brands makes them even more aspirational towards lifestyle products.

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Products from Only Play and Classic collections are created using soft enriched Egyptian cotton to ensure superior comfort, combined with innovative ultra fresh technology to keep the garment hygenic, and odour-free through the day.

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In footwear there are a lot of innovations too – there is a new line of walking shoes coming up in just a few months from now. Meanwhile, in the fashion segment consumers will see the trends from the 90s and the 80s coming back. More such innovative launches will be seen during Fall-Winter ‘19 and Spring- Summer ‘20.

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The market that grew first only on the basis of product offer with the promise of quality has moved to brand promise of certain image and now to offering full wardrobe solutions.

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