A CASE ANALYSIS ON GIVING A NEW SPIN TO KHADI

With reference to
RAYMOND

In partial fulfilment of the requirement of the award of the degree of

Bachelor of Business Administration (BBA)

Submitted by

CHERUVU HIRANMAI

Regd No: 118132607007

Under the Guidance of

Mrs. D. S. Shilpa.
Assistant Professor

SRINIVASA INSTITUTE OF MANAGEMENT STUDIES (SIMS)

PM Palem, Visakhapatnam.
2018-2021
 DECLARATION

I hereby declare that the case analysis entitled “GIVING A NEW SPIN
TO KHADI” is prepared by me under the guidance of Mrs. D. S. Shilpa
Assistant Professor.

I also declare that this case analysis is towards the partial fulfilment of the
requirement for the degree of Bachelor of Business Administration of Andhra
University has been the result of my own efforts and this project has not been formed a
basis for the award of any other degree or any other university.

Place: Visakhapatnam

Date: Signature and name of the candidate

 CERTIFICATE OF GUIDE

This is to certify that the case analysis report entitled “GIVING A NEW SPIN TO
KHADI” has been prepared by CHERUVU HIRANMAI in partial fulfilment of the
requirement for the award of Bachelor of Business Administration from Andhra
University, Visakhapatnam and has been carried out under my supervision and guidance
and that no part of report has been submitted for the award of any other degree / diploma.

Place: Visakhapatnam

Date: Signature of the Guide

Signature of the Director Signature of the External Examiner

 ACKNOWLEDGEMENT

I am very much grateful to my guide Mrs. D. S. Shilpa Assistant Professor for

guiding me in a right manner to complete this case study.

I would also like to express my deep gratitude and sincere thanks to our Director Dr.

Vijaya Rudraraju for her encouragement and guidance throughout the period of this study.

Place: Visakhapatnam

Date: Signature and name of the candidate

 INDEX

CHAPTER-1 INDUSTRY PROFILE & COMPANY PROFILE 1-11

CHAPTER-2 CASE STUDY 12-19

CHAPTER-3 7 STEP MODEL 20-25

 CHAPTER – I
INDUSTRY PROFILE
Introduction:

India’s textiles sector is one of the oldest industries in the Indian economy, dating back to
several centuries. The industry is extremely varied, with hand-spun and hand-woven textiles
sectors at one end of the spectrum, while the capital-intensive sophisticated mills sector on the
other end. The decentralised power looms/ hosiery and knitting sector forms the largest
component in the textiles sector. The close linkage of textiles industry to agriculture (for raw
materials such as cotton) and the ancient culture and traditions of the country in terms of textiles
makes it unique in comparison to other industries in the country. India’s textiles industry has a
capacity to produce wide variety of products suitable for different market segments, both within
India and across the world.

Market Size
India’s textiles industry contributed 7% to the industry output (by value) in 2018-19. The
Indian textiles and apparel industry contributed 2% to the GDP, 12% to export earnings and held
5% of the global trade in textiles and apparel in 2018-19.

The share of the India’s textiles and apparel exports in mercantile shipments was 11% in
2019-20. Textiles industry has around 4.5 crore employed workers including 35.22 lakh
handloom workers across the country. Cotton production is expected to reach 36.0 million bales
and consumption is expected to reach 114 million bales in FY21—13% growth over the previous
year. The domestic textiles and apparel market stood at an estimated US$ 100 billion in FY19.
The production of raw cotton in India is estimated to have reached 35.4 million bales in FY20^.
During FY19, production of fibre in India stood at 1.44 million tonnes (MT) and reached 1.60
MT in FY20 (till January 2020), while that for yarn, the production stood at 4,762 million kgs
during same period. Exports of textiles (RMG of all textiles, cotton yarn made-ups/handloom
products, man-made yarn/fabs/made-ups, handicrafts excl. handmade carpets, carpets and jute
mfg. including floor coverings) stood at US$ 29.45 billion, as of March 2021.
Investment
The textiles sector has witnessed a spurt in investment during the last five years. The
industry (including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$ 3.68
billion from April 2000 to December 2020.

Government Initiatives
Indian government has come up with several export promotion policies for the textiles
sector. It has also allowed 100% FDI in the sector under the automatic route.
Initiatives taken by Government of India are:

i. In April 2021, Union Minister Smriti Irani has assured strong support from the Textile
Ministry to reduce industry’s dependence on imported machine tools by partnering with
 engineering organisations for machinery production. She also stated that the PLI scheme
for the textile industry is almost ready. The scheme aims to develop Man Made Fiber
(MMF) apparel and technical textiles industry by providing incentive from 3-15% on
stipulated incremental turnover for five years.
ii. To support the handloom weavers /weaver entrepreneurs, the Weaver MUDRA Scheme
was launched to provide margin money assistance at 20% of the loan amount subject to a
maximum of Rs. 10,000 (US$ 134.22) per weaver. The loan is provided at an interest rate
of 6% with credit guarantee of three years.
iii. Gorakhpur is on track to become a major garment manufacturing centre, boosting the
economy in eastern Uttar Pradesh. The Gorakhpur Industrial Development Authority
(GIDA) will provide four acres of land for construction of a flattened factory and will
enable accessible to entrepreneurs.
iv. In March 2021, The Ministry of Textiles favoured limited deal for the India-UK free
trade agreement that could boost the garments sector.
v. In 2020-21, the UK is India's fourteenth largest trading partner, accounting for US$ 8.7
billion in exports and US$ 6.7 billion in imports.
vi. Under the proposed trade agreement, the Textile Ministry expects more market access for
the Indian textiles and clothing sector to achieve its full potential.
vii. In March 2021, under the ongoing sub-mission on agroforestry (SMAF) scheme, the
Ministry of Agriculture and Farmers Welfare signed a memorandum of understanding
(MoU) with the Central Silk Board, under the Ministry of Textiles, on a convergence
model to implement agroforestry in the silk sector.
viii. In March 2021, toys were identified as one of the 24 primary sectors listed under the self-
reliant India initiative. The Department for Promotion of Industry and Internal Trade
(DPIIT) has developed a ‘National Action Plan’ for toys that calls on several central
ministries, including textiles, MSME, I&B, Education, DPIIT (under the Ministry of
Commerce) and other departments, to nurture and promote the industry.
ix. Effective 01 January 2021, to boost exports, government have extended the benefit of the
Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) to all
exported goods
 x. To support the handloom and handicrafts sector, the government has taken steps to
onboard weavers/artisans on Government e-Marketplace (GeM), provide a wider market
and enable them to sell their products directly to various government departments and
organisations. As of December 31, 2020, 171,167 weavers/artisans/handloom entities
have been registered on the GeM portal.
xi. Defence Research and Development Organisation (DRDO) is helping the Indian textile
industry to produce yarns and eliminate dependence on import of Chinese and other
foreign clothing for military uniforms. Indian defence sector has expressed support
towards the Indian technical textile sector.
xii. In March 2021, while addressing the 9th edition of TECHNOTEX 2021 organized by
FICCI, General Bipin Rawat, Chief of Defence Staff appreciated the innovations in
Indian technical textile and stated that the armed forces will rather reduce imports and
instead procure technical textiles from Indian industries as a part of the Atmanirbhar
Bharat initiative.
xiii. In October 2020, the Cabinet Committee on Economic Affairs chaired by Mr. Narendra
Modi approved mandatory packaging of 100% food grains and 20% sugar in jute bags.
Under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act,
1987, the government is required to consider and provide for the compulsory use of jute
packaging materials for supply.
xiv. Government launched production linked incentive scheme to provide incentives for
manufacture and export of specific textile products made of man-made fibre.
xv. On September 2, 2020, the Union Cabinet approved signing an MOU between textile
committee, India and M/s Nissenken Quality Evaluation Centre, Japan, for improving
quality and testing Indian textiles and clothing for the Japanese market. This India-Japan
pact on cooperation in textiles will facilitate Indian exporters to meet the requirements of
Japanese importers as per the latter’s technical regulations.
xvi. Under Union Budget 2020-21, a National Technical Textiles Mission is proposed for a
period from 2020-21 to 2023-24 at an estimated outlay of Rs. 1,480 crore (US$ 211.76
million).
xvii. In 2020, New Textiles Policy 2020 is expected to be released by the Ministry of Textiles.
xviii. The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under
the Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles
Industry - readymade garments and made-ups - from 2% to 4%.
xix. The Government of India has taken several measures including Amended Technology
Up-gradation Fund Scheme (A-TUFS), estimated to create employment for 35 lakh
people and enable investment worth Rs. 95,000 crore (US$ 14.17 billion) by 2022.
xx. Integrated Wool Development Programme (IWDP) was approved by Government of
India to provide support to the wool sector, starting from wool rearer to end consumer,
with an aim to enhance quality and increase production during 2017-18 and 2019-20.

KHADI

Khadi, derived from khaddar, is a hand spun and woven natural fibre cloth coined in
1918 by Mahatma Gandhi during freedom struggle of the Indian subcontinent, 'Khadi' term is
used throughout India, Pakistan and Bangladesh. The first piece of the hand-woven cloth was
manufactured in the Sabarmati Ashram during 1917-18. The coarseness of the cloth led Gandhi
to call it 'khadi'.[6] The cloth is usually hand spun and woven from cotton. However, it may also
include silk or wool, which are all spun into yarn on a spinning wheel called a charkha. It is a
versatile fabric, cool in summer and warm in winter. In order to improve its looks, khādī/khaddar
is sometimes starched to give it a stiffer feel. It is widely accepted in various fashion
circles.[7] Popular dresses are made using khadi cloth such as dhoti, kurta, and handloom
sarees such as Puttapaka Saree, Kotpad Handloom fabrics, Chamba Rumal, Tussar
silk etc. Gajam Anjaiah, an Indian master handloom designer and a recipient of the Padma Shri,
is known for his innovation and development of tie-dye handloom products along with the Telia
Rumal technique of weaving products based on the Ikat process.
 The movement for Khadi began in 1918. The movement was marked with its own
changing dynamics. While initially, a clear emphasis could be seen on using Khadi as a medicine
to the masses ridden with poverty due to economic stagnation, from 1934 onwards the fabric
became something that the village people could use for themselves. It was no longer seen only as
a commodity for sale to bring economic prosperity. The meaning became humbler. In 1942-43,
right after coming out of the prison, his ideology behind Khadi became that of making the fabric
useful for the villagers themselves. His ideas came out clearly by 1944, when he left no stone
unturned to bring this change into effect.
 COMPANY PROFILE

Company Perspectives:

Excellence is a way of life at Raymond that has been manifested in all our endeavours
over our entire history. These endeavours have been translated into designing and developing
products of international standards, delivering enhanced values through brand building,
distribution and customer relationship. Raymond today, is a culmination of untiring human
efforts based on the fabric of values.

History of Raymond:

Raymond Ltd. is one of India's, and the world's, leading producers of worsted fabrics,
claiming some 60 percent of the Indian worsted suiting market. The company's Textiles division,
which accounts for 50 percent of group turnover, produces more than 25 million meters of wool
and wool-blended fabrics each year, placing the company at number three worldwide.

Raymond is a major supplier to the global textile industry, providing fabrics and
completed garments to more than 50 countries, including the North American, European, Middle
East, and Japanese markets. The company is also a major fabric innovator, and is one of just two
or three manufacturers in the world capable of producing the Super 210s and Super 220s grades
of pure wool, made from 13.2 micron and 12.69-micron wool, respectively. In the mid-2000s,
Raymond also has been investing heavily in the production of denim; in 2005, the company
raised its installed capacity to more than 30 million meters of ring denim, and boosted capacity
by another ten million meters in early 2006. Denim sales accounted for 15 percent of group sales
in 2005.

Raymond has long been an integrated textiles group, including production of its own
branded clothing--under the Raymond, Parx, and Manzoni names--as well as retail distribution
through an India-wide network of more than 320 stores, including nearly 20 Be designer clothing
stores. The company also acquired ColorPlus in 2004, giving it control of one of India's leading
casualwear brands. Garment sales contributed more than 20 percent of the company's sales in
2005. Other Raymond operations include a 50 percent stake in the J.K. Ansell joint venture,
which produces condoms under the Kama Sutra brand. Raymond also controls J.K. Files &
Tools, the world's leading producer of files and rasps. Raymond itself is the flagship of the
Singhania Group, a chemicals producer. The company is led by CEO Gautam Hari Singhania,
great-grandson of the company's founder. Raymond is listed on several stock exchanges in India,
including the Mumbai (Bombay) Stock Exchange.

Branching into Textiles in the 1920s

Raymond stemmed from the founding of the Wadia Woollen Mill along the Thane creek
in Maharashtra, near Bombay, in the early part of the 20th century. The mill was later acquired
by a wealthy industrialist family, the Sassoons, who were based in Bombay. The Sassoons
reincorporated the company as Raymond Woollen Mill in 1925. Raymond's production was at
the time limited to coarse woollen blankets and low-priced wool fabrics.

The Singhania family entered Raymond's picture in the 1940s. Led by Juggilal Singhania
and his son Kamlapat Singhania, the Singhanias had been building their own industrial empire,
the J.K. Group of companies, in the Kanpur region. Although involved in several activities,
chemicals, particularly the production of textile dyes, became something of a family focus. In the
1940s, the family, then led by Kailashpat Singhania, grandson of the company's founder, began
looking for further expansion possibilities, particularly in the Bombay area. The company's
interest turned to the textile sector, a natural extension of its other operations.

In 1944, the Singhania’s purchased the Raymond Woollen Mill, keeping its name, and
building it into one of the most well-known names in the Indian textile and clothing industry.
Kailashpat Singhania became determined to raise the mill's production beyond its cheap woollen
blankets and began investing in technology improvements through the 1950s. While the
company continued to produce blankets, it introduced new wool grades and colours. At the same
time, Raymond launched its own research and development to create new wool-based fabrics.
This effort resulted in the launch of the company's first new wool type, Teerol, a wool-blended
yarn, in 1958.

That year also marked Raymond's first venture into the retail market. In 1958, the
company opened its first showroom, in Mumbai in the J.K. Building. The first store was called
King's Corner. The company's publicity efforts in the 1950s and into the 1960s, based on the
"Chess King" motif, reflected the group's focus on a higher-end, upwardly mobile market. Later,
in the 1960s and into the 1970s, the company adapted its advertising for the times, shifting its
advertising focus to an "ordinary man" character.

The company later enjoyed advertising success with its "Guide to the well-dressed male"
in the 1980s, which was followed by the launch of a new campaign, for "The Complete Man" in
the 1990s and 2000s. The company later changed its retail store name to Raymond Shops. By the
2000s, there were more than 320 Raymond shops in operation in more than 150 cities.

In the late 1960s, Raymond's research and development effort paid off again, with the
launch of a new fabric type, Trovine, in 1968. The material represented a breakthrough in the
wool industry, providing a lightweight fabric for cooler garments and enabling wool to be worn
year-round, including during the hot Indian summers. In the meantime, Raymond, which
remained focused especially on the textile market, moved to boost its operations in the clothing
sector, founding subsidiary Raymond Apparel in 1969. From this beginning, the Raymond-
branded line became one of the biggest-selling clothing brands in India.

Industrial Group in the 1980s

The arrival of a new generation of Singhania’s at the head of the family empire signalled
a new era for the company. Vijayapat Singhania, who formally took over the company in 1980,
became credited with developing the company into a modern, industrial group. The company's
new strategy involved building its capacity and its technology to become a world-class textile
producer. The company took a first step in this direction in 1979, when it began construction of a
new factory in Jalgaon. The company added a third mill, in Chindwara, in 1992. By the 2000s,
Singhania's production had topped 25 million meters of worsted fabric per year, placing it as one
of the world's top three producers.

While continuing to target growth in the textile sector, Vijayapat Singhania became
determined to develop Raymond into a diversified industrial conglomerate. The company entered
the cement production market, and later added a unit producing files and rasps, developing that
business, J.K. Files & Tools, into a world leader. In 1984, the company added the manufacture of
automobile components, later brought together into Ring Plus Aqua Limited, in a joint venture
with Osaka Pump Company of Japan, in 1998.
 Yet textiles remained at Raymond's heart. In 1985, the company extended its reach in the
clothing sector with the launch of the Park Avenue brand. That line initially consisted of
formalwear, including suits, jackets, trousers, shirts, woollen knitwear, and accessories. In 1986,
the company expanded the Park Avenue line to include a range of ready-to-wear business
clothing. The Park Avenue brand was later broadened with the addition of a casualwear range,
under the Parx label, introduced in 1999. The company also took its first step on the international
retail scene, opening its first foreign Raymond shop, in Oman, in 1990.

At the same time, Raymond maintained its technological edge, introducing several new
fabric types in the 1990s. These included the superfine pure wool collection, Lineage, in 1995,
which was followed by the Renaissance collection in 1996, featuring merino wool blended with
polyester and other specialty fibres. The company added extra-fine cashmere and merino wool
blends, called the Chairman's Collection, in 1999. In 2000, Raymond debuted its PV Lycra-based
suiting material as well. Then in 2003 and 2004, the company became one of only two or three
manufacturers in the world capable of producing the new Super 210s and Super 220s grades of
wool.

While textile production remained a centrepiece of Raymond's operations, the company's

focus fell especially on its determination to transform itself into a leading producer of brand
name clothing. As part of this effort, the company launched a new luxury brand, Manzoni. The
company supported this launch with the opening of an exclusive Manzoni retail showroom in
New Delhi in 2005. Raymond also opened its first Park Avenue shops that year.

In the meantime, the company had continued to develop its brand family, notably with
the acquisition of Colour Plus in 2003. That purchase gave the company control of one of India's
leading casualwear brands to supplement the Parx brand, which had been struggling to gain a
significant share of the Indian market. More successful for the group was its launch of the Be
retail designer clothing collection in 2002. By 2005, the company had opened 16 Be stores and
had attracted several India's prominent designers. Raymond had become one of the most
prominent names in the Indian and global textile industries.
Key Dates
a) 1925 Raymond Woolen Mill, a producer of woolen blankets, is incorporated to take over
a wool mill in Thane, Maharashtra, India.
b) 1944 J.K. Singhania Company and the Singhania family acquire Raymond and it begins
expanding production into higher-grade wools and textiles.
c) 1958 Raymond opens its first retail store, King's Corner (later Raymond Shops) in
Bombay; a new wool blend, Terool, is introduced.
d) 1968 The company introduces a new lightweight wool, Trovine.
e) 1969 A clothing subsidiary, Raymond Apparel, is established.
f) 1980 Vijayapat Singhania becomes head of the company and begins industrial
diversification.
g) 1985 The company launches the Park Avenue clothing brand.
h) 1990 The first foreign Raymond shop opens in Oman.
i) 1991 The company launches production of condoms through a subsidiary.
j) 1995 Steel production begins.
k) 1999 The company launches the Parx casualwear brand.
l) 2000 Gautam Hari Singhania becomes head of the company and leads a restructuring to
focus on textile and clothing sales.
m) 2002 Raymond sells its steel operations as part of the divestment of much of the
company's noncore businesses; the Be ready-to-wear designer retail format is launched.
n) 2003 The Color Plus casual brand is acquired.
o) 2005 The company opens its first Manzoni and Park Avenue retail stores; production of
denim is expanded to 30 million tons.
p) 2006 Denim production is expected to top 40 million tons.
 CHAPTER – II
CASE STUDY

ABSTRACT:
The case ‘Raymond: Giving a New Spin to Khadi’ talks about the efforts of Indian textile
major Raymond Ltd. (Raymond) in re-positioning India’s traditional fabric ‘Khadi’ as a new
fashionable fabric, as part of its growth strategy. The case starts with a brief look at Raymond’s
history and its textile innovations. It then gives a short history of Khadi and its importance in the
Indian milieu.
The case discusses in depth Raymond’s deal with the statutory government body Khadi
Village and Industries Commission (KVIC) that branded and promoted Khadi. The deal allowed
the company to offer ‘Khadi by Raymond’. The issues that Raymond faced in making Khadi
market ready are also described. Raymond’s efforts at changing certain pre-conceived notions
about Khadi through a new advertising campaign are discussed as well. The case ends with a
brief look at the future prospects of Raymond in the Khadi space.

Raymond is a significant textile business worldwide known for its fabric quality and
fitting suits. The brand now plans to customize its fabric to suit the Indian market. For this, the
market experts narrow down to the traditional Indian material- “Khadi”.

Khadi is a hand-woven, light, and comfortable fabric with some rich cultural and
historical significance. Raymond, in its latest marketing strategy, tried to integrate Khadi in
modern fashion. The marketing team adopted innovative advertising ideas to make their product
more appealing and relatable.

This case study titled “Raymond: Giving a new spin to Khadi” discusses the deal
between the company and the govt. Body. Khadi Village and Industries Commission (KVIC) is
an organization that overlooks the production and distribution of khadi in India.
WINDS OF CHANGE AT RAYMOND:

Despite Raymond’s innovations in textiles and its strong retail footprint, it was still not
financially sound. By the mid-2010s, Raymond had been facing a deep financial crisis for some
years. The key reason for the company’s decline was the rise in brands, both Indian and
international, which offered custom-tailored clothing and readymade clothing. Between 2009 and
2013, while the cost of capital and interest charges rose, the margins of the company fell by 5%

KHADI – INDIA’S TRADITIONAL FABRIC:

Khadi was considered a traditional fabric in India that was woven on handlooms using
yarn that was hand-spun from cotton, wool, or silk or any combination of two or all these yarns.
In India, the yarn was spun using the ‘Charkha’, a small wooden spinning wheel.

THE AGREEMENT BETWEEN RAYMOND AND KVIC:

In 2016, the time was ripe for both Raymond and KVIC to collectively make a new move
in the Khadi space. In December 2016, Raymond signed a Memorandum of Understanding
(MoU) with KVIC. The public-private partnership (PPP) was a first of its kind initiative in India
between two Indian brands (Raymond and Khadi), which were thought to be representative of
the cultural heritage of India.

RAYMOND’S EFFORTS TO MAKE KHADI MARKET-READY:

As part of the agreement, Raymond agreed to a guaranteed minimum procurement of
Khadi and Khadi products for a period of five years. The company made primary purchases of
muslin cotton, wool blends, and silk from KVIC.

THE LAUNCH OF KHADI BY RAYMOND:

In May 2017, Raymond launched the new ‘Khadi by Raymond’ product line at a fashion
show. The new product line included a variety of fabric blends and ready to wear apparel.
Industry observers opined that never before had Khadi been presented with so many customer
options.
THE PROMOTION OF KHADI BY RAYMOND:
In India, Raymond had a strong brand presence. The common belief was that the first suit
that an Indian man ever purchased would be a Raymond one. Keeping that in mind, the company
positioned itself in the premium segment. Raymond’s main communication message was
centered on the theme of ‘Raymond: The Complete Man’. Raymond mostly positioned itself as
an occasion-led brand with customers expected to make purchases at special events in their lives
such as, weddings and birthdays, among other occasions.

THE FUTURE OF KHADI BY RAYMOND:

In FY 2018, Raymond purchased as much as 0.72 million meters of grey khadi fabric.
Raymond, which had started out working with 20 Khadi clusters across India, had increased its
association to more than 75 clusters in 16 Indian states, by December 2018. To further complete
the company’s Khadi collection, Raymond added shoes and accessories such as tie pins and lapel
pins.
 CHAPTER – III
7 STEP MODEL

In the case study, we have used the seven-step procedure which is used by many B-
Schools all around the world. The Seven steps followed by me are as follows:
Step 1 - Identification of the problem
Step 2 – Facts of the case
Step 3 - Identifying the alternative solutions
Step 4 - Evaluating alternatives
Step 5 - Choosing the best solution
Step 6 - Rationale of the case study
Step 7 - Implementing of the solution
1. IDENTIFICATION OF THE PROBLEM:
The present case i.e. Giving a new spin to Khadi with reference to Raymond has the following
problems
i. One of the key reasons for company’s decline was rise in the brands both Indian &
International.
ii. Between 2009 and 2013 the cost of capital and interest charges rose, the margins of the
company fell by 5%.
2. FACTS OF THE CASE:
i. In December 2016, Raymond signed a Memorandum of understanding with Khadi Village
and Industries Commission (KVIC)
ii. The Public-Private Partnership (PPP) was a first of its kind initiative in India between
two Indian brands (Raymond and Khadi)
iii. In May 2017, Raymond launched the new ‘Khadi by Raymond’ product line at a fashion
show.
iv. In FY 2018, Raymond purchased as much as 0.72 million meters of grey khadi fabric.
Raymond.
3. IDENTIFYING THE ALTERNATIVE SOLUTIONS:
i. The Public-Private Partnership (PPP) was a first of its kind initiative in India
between two Indian brands (Raymond and Khadi), which were thought to be
representative of the cultural heritage of India.
ii. Introducing new product line that includes a variety of fabric blends and ready to
wear apparel.
iii. Khadi has been presented with so many customer options and in affordable range.
4. EVALUATING ALTERNATIVES:
I. Public Private Partnerships:
Advantages:
a) A public-private partnership (PPP) is a contract between a public body and
a private organization.
b) PPPs bring together the expertise and resources of the two sectors with the
intention of providing services or infrastructure at a better value for
money.
Disadvantages:
a) Every public-private partnership involves risks for the private participant,
who reasonably expects to be compensated for accepting those risks. This
can increase government costs.

II. New Product Line:

Advantages:
i. Customers have several options to choose from.
ii. Increase of sales
Disadvantages:
i. Cost of developing the textiles
ii. Bad publicity for one product may harm the company’s whole image.

III. Affordable price range:

Advantages:
i. Increased Sales Volume
ii. Reaching Wider Audiences
iii. Potential customer
Disadvantages:
i. Perception of Quality
ii. Credibility
5. CHOOSING THE BEST SOLUTION:
The new product line included a variety of fabric blends and ready to wear apparel is the
best alternative.
6. RATIONALE OF THE CASE STUDY:
In FY 2018, Raymond purchased as much as 0.72 million meters of grey khadi fabric.
Raymond, which had started out working with 20 Khadi clusters across India, had increased its
association to more than 75 clusters in 16 Indian states, by December 2018. To further complete
the company’s Khadi collection, Raymond added shoes and accessories such as tie pins and lapel
pins.
7. IMPLEMENTING OF THE SOLUTION:
a) Through varied yet simplified choice to customers the company has attained enhanced
levels of customer satisfaction.
b) Helps in becoming a preferred vendor and reduces churn rate of customers
c) To diversify so that if sales of the original product declines, increasing sales of new
products might replace it.