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‘Our strength will be our economies of scale’
Arvind Gupta, director (sales), denim division, Raymond
 Economies
of scale is being adopted in order to reduce the cost of per unit of fabric.
For the last three years, we have continued our expansion programme and the
process will continue in future too. From 10 million metres three years back,
today our capacity has doubled at 20 million and by the end of the new fiscal,
we are planning to take our capacity to around 35 million metres. In addition,
we are going for forward integration into garments in a very big way. The garment
facility will have capacity to produce 10,000 pieces per day. We are planning
to invest Rs 35-40 crore near Bangalore for this facility. In order to rationalise
our power cost and improve its quality, we are exploring the possibilities to
expand our captive power generation capacity from the present 6 MW. Even as
we add to our existing workforce to meet the growing need of expansion, the
management structure will be kept unchanged. This will help us rationalise our
overall cost of manpower in the medium to long term.
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