Raymond, India’s oldest menswear manufacturer, has attempted a delicate transformation: evolving from comfortable monopolist to agile competitor without abandoning the family-oriented culture that built its reputation. Whether this balancing act will survive intensifying competition remains to be seen.
The company, founded in 1925, enjoyed decades of protected growth in India’s closed economy. KA Narayan, Raymond’s president-HR, describes the traditional setup: “It was a company where promoters cared deeply for people, and professionals were empowered to run the show.” This paternalistic approach fostered loyalty and trust across the organisation.
That comfortable arrangement ended when India liberalised its economy. E-commerce platforms disrupted traditional retail channels, international brands such as H&M and Uniqlo entered the market, and consumer preferences shifted from bespoke tailoring to ready-to-wear convenience.
“It was a company where promoters cared deeply for people, and professionals were empowered to run the show. This paternalistic approach fostered loyalty and trust across the organisation.”
KA Narayan, president-HR, Raymond
“The market shifted,” acknowledges Narayan. “Tailoring gave way to instant gratification, and price consciousness became the new normal.” Raymond recognised the need to evolve from fabric manufacturer to lifestyle brand, requiring fundamental changes in both strategy and mindset.
Diversification drives change
Raymond’s entry into real estate marked a significant departure from its textile roots. This venture forced the company to adopt what Narayan calls “a very startup mindset.” He explains: “We had to push ourselves to think differently, take calculated risks and become comfortable with ambiguity.”
This diversification strategy triggered broader cultural changes. Raymond began fostering entrepreneurial thinking across all levels. “Every role had to be treated like a business,” says Narayan. “Decision-making powers were pushed across levels. That’s a big mindset shift from where we began.”
The transition from hierarchical decision-making to distributed authority represents a significant shift for any traditional manufacturer, though Raymond provides little concrete evidence of measurable outcomes from these changes.
Building tomorrow’s leaders
Raymond has built what it considers a comprehensive leadership development system. Every candidate is assessed against the company’s “Leadership Competency Framework,” which guides hiring, performance reviews, and succession planning.
Once hired, employees undergo psychometric assessments to identify skill gaps. The company uses nine-box grids to map potential and designs interventions accordingly. For identified high-potential employees, Raymond operates two programmes spanning 18 months each, combining classroom training, university partnerships, feedback sessions, and project-based learning.
“We call it our Raymond University,” says Narayan. The programmes focus on functional leadership across manufacturing, engineering, supply chain, and finance. These efforts reportedly produce leaders who “think like entrepreneurs” and “drive change rather than wait for direction,” though independent verification of these outcomes remains limited.
Managing generational differences
Raymond has adapted its approach for a multigenerational workforce without abandoning core values. Flexibility, autonomy, and trust now form the foundation of employee relations, though Narayan notes: “There wasn’t huge demand for policy changes, but flexibility was something younger employees appreciated.”
Rather than implementing formal flexible working policies, Raymond relies on managerial discretion. “If a people manager wants to allow work-from-home or flexible hours, they can decide,” explains Narayan. “That autonomy is built into our way of working.”
This trust-based approach proved valuable during the COVID-19 pandemic when retail operations were disrupted. “We adapted,” recalls Narayan, though he provides no specific details about how the company navigated the crisis compared to competitors.
Technology with human oversight
The company is cautiously adopting artificial intelligence and automation. Raymond uses AI tools for résumé screening and skill matching, though Narayan emphasises the focus remains on “augmenting rather than replacing human judgement.”
“We’ve implemented HR automation and are now deploying AI for résumé screening and skill matching,” he states. “But more importantly, we’re building a digital mindset among our employees.” The effectiveness of these technological implementations remains unmeasured publicly.
Evolving leadership demands
Raymond’s leadership requirements have evolved significantly. The company now emphasises what Narayan terms “transformation competencies”—growth mindset, innovation, and collaboration. Purpose-driven leadership has become important, with leaders encouraged to connect personal goals with corporate transformation.
“Our leaders today are not just growth champions,” declares Narayan. “They are also cost warriors.” This dual focus reflects increased competitive pressure and the need for operational efficiency—a common challenge across Indian manufacturing.
Narayan wants leaders who can “navigate uncertainty, not resist it,” requiring “emotional resilience and the ability to connect dots in ambiguity.” These are ambitious requirements for any organisation, particularly one with Raymond’s traditional manufacturing heritage.
The resilience factor
Raymond attributes its survival to organisational resilience, a concept that permeates the company’s narrative. When retail stores shuttered during the pandemic, the company adapted rather than struggled. “That’s the organisational resilience that defines us,” says Narayan. “Now we’re translating that into employee resilience through leadership training, self-awareness and purpose.”
This resilience manifests in daily operations—decision-making processes, employee trust levels, and cultural evolution. “There’s a tide that shapes businesses,” muses Narayan. “We have to ride it, sometimes steer it. And for that, we need self-aware, adaptable, entrepreneurial people who care.”
The verdict
Raymond’s transformation narrative reflects broader challenges facing traditional Indian manufacturers. The company has modernised whilst attempting to preserve cultural continuity, though independent verification of these achievements remains limited.
The emphasis on cultural preservation alongside modernisation may appeal to employees seeking stability, but it could also constrain the radical changes needed to compete effectively in rapidly evolving markets. Raymond’s approach offers one model for legacy companies navigating transformation, though its ultimate success will depend on execution rather than aspiration.
Whether this century-old suit-maker can indeed stitch together tradition and innovation remains an open question. The market will ultimately judge whether Raymond’s careful threading of old values with new capabilities creates a sustainable competitive advantage or merely postpones more fundamental reckonings.