Gautam Hari Singhania loves speed and often burns tyres on Formula 1 race tracks. He also loves good clothes. Given a choice he would dress up the whole world in shirts, trousers, jackets and garments sold by his company. But most of all he loves money.

Singhania, 37, can be emotional, but not when it comes to a business deal. He is quick, but can dig in his heels if that ensures a better deal. His friends say he is gutsy. And given his ability to strike some of the most stunning deals in recent history, his business rivals would much rather have him on the race tracks.

SHARP FOCUS: Singhania has sold other businesses to concentrate on garments

A complete man? For Raymond, the Rs 1,400 crore group he inherited three years ago, he definitely is. For till he stepped into his father Vijaypat's shoes, Raymond, like many family-run businesses in India, was struggling.

It was making worsted fabrics, garments, cement, steel, filament yarn, men's toiletries, brought out a newspaper, ran an air charter service and even manufactured one of the country's most popular condom. The group could have remained that way and like several of its family-owned peers, drifted into oblivion.

But Singhania Jr had different plans. Since the early 1990s he had been watching the action quietly. He was inducted into the family business in 1986 in The Indian Post, a newspaper the group brought out. He was subsequently responsible for the marketing success of the Kamasutra brand of condoms. By the late 1990s, Vijaypat had withdrawn from active management at Raymond. With his elder brother Madhupati too not showing any interest in the family business (he is settled abroad), the mantle fell on Singhania.

When he took charge of the group in 1999, Singhania was clear. The group had to grow or exit in each of its businesses. If it stayed where it was, it would only "decay". In September 2000 Raymond sold its steel business. "We realised that we were in the wrong business at the wrong time. The steel industry was in a recession and we couldn't turn around this business," says Singhania. So he sold it for Rs 412 crore to EBG, a foreign steel company.

In January 2001, he signed an agreement with French cement giant Lafarge to sell Raymond's cement business for Rs 775 crore. "In this case, it was the money on offer. We could earn more from the interest on this amount than we would from running the business," he says. "We were free to focus on our core areas. And, of course, we had cash."

Recalls Shanti Ekambaram, director, Kotak Mahindra Capital Company, who advised Lafarge on the deal: "We met twice and in the third meeting we were ready to shake hands. His speed of decision-making was amazing. Was he emotional about letting go of the cement division? "Yes, it was an emotional decision. But then in business you have to sit and think cool. Maybe I am more emotional about making money," says Singhania.

Singhania was not letting go any more. He was now on the prowl for businesses. A few months later, Ekambaram was part of the team that advised Singhania when he decided to buy out ColorPlus, one of India's best known brands of premium casual wear. "This time around he was willing to wait for a year to get the best deal," recalls Ekambaram. Singhania paid Rs 38 crore for the two-stage deal in September 2002. He also got a foothold-albeit small-in the European market when he bought out Regency, a suit and jacket brand in Portugal, for Rs 14 crore.

Since January 2001 Singhania has raised close to Rs 1,200 crore by selling businesses. After retiring high-cost debts, enhancing capacities and acquisitions, he still has about Rs 600 crore and is in no hurry to spend it. Right now, he is thinking global. "Why manufacture when we can outsource from where we get the best cost option. To customers it's the shirt that matters, not where it's made," he says.

Last year, Raymond outsourced from manufacturers in Bangladesh. Most of its popular shirt and trouser brands are outsourced. Raymond is already the third biggest maker of worsted fabric in the world. Singhania now also wants to make it big in the garments business.

"Given the size of Raymond's cash balance, it can buy international brands," says Munzal Shah, analyst at Advani Share Brokers. Singhania's latest move is a chain of stores under the Be: label. They will sell pret, or low-priced designer wear, made by India's top designers including Rohit Bal, Ritu Beri and Raghavendra Rathore at prices ranging from Rs 400 to Rs 6,000.

His Deals
Filament yarn division sold to Reliance for Rs. 17.5 crore in January 2000.	Sold steel division to EBG for Rs 412 crore in September 2000.	Sold cement division to Lafargefor Rs. 775 crore in January 2001.	Bought Regency Texteis Portuguesa for Rs 14 crore in October 2001.	Bought Color Plus garment brand for Rs 38 crore in September 2002.
His Brands His Rivals His Passion Raymond The flagship brand, best known for worsted suitings. Park Avenue India's largest men's formal wear brand. Also men's toiletries. Parx Value for money brand for casualwear; faces toughest competition. Manzoni Niche brand of premium formal wear. ColorPlus Fastest growing premium casualwear brand offering trousers, shirts, tees, belts, caps and bags. Be: India's first pret brand sold through an exclusive chain. Yet to make a mark Kamasutra Global condom brand sold in 30 countries. Birla's Indian Rayon, which has brands like Louis Philippe, Allen Solly and Van Heusen, is Singhania's biggest competitor. With the Arrow, Lee and Excalibur brands, Sanjay Lalbhai of Arvind could unsettle Singhania. Formula 1 car racing; fashion. His Loves Making money for himself and his shareholders. His Ambitions To be a global player in the garment business. Has already begun outsourcing and plans manufacturing bases abroad.

Be: marks the entry of Raymond, which has traditionally been a men's brand, into the Rs 6,000 crore women's wear market. "At the end of the day, even the complete man needs a woman," quips Nabankar Gupta, Raymond's group president.

As of now, none of the Raymond brands are doing badly. Park Avenue is the largest formal menswear brand in India and Parx has been able to find a toe hold in the competitive casualwear mass market. The recently acquired ColorPlus is the biggest brand in the premium casualwear segment. Be:, however, has had a mixed response. Singhania now wants to launch made-to-measure shirts, where the customer can give his measurements, choose the style and then order formal shirts over the Internet or even on the phone.

But before he realises his online dreams, Singhania has to contend with the competition from established players like the Birlas and the Lalbhais. The Kumar Mangalam Birla-controlled Indian Rayon bought Madura Garments in December 1999. With successful brands like Louis Philippe, Allen Solly, Van Heusen and Peter England, Indian Rayon is the big daddy of readymade menswear in terms of revenue. Admits Singhania: "They are about Rs 100 crore more than us in terms of revenues but they have seven brands while we have only three-and-a-half." Arvind Mills is the other big competitor with big brands like Arrow, Lee, Wrangler and Excalibur. Then, of course, there is a host of small Indian brands and big global names bursting into the apparel market.

Singhania is betting on his presence at all price points across the Rs 43,000 crore apparel market. With the branded apparel market growing at 15-20 per cent a year, there will be space for brands that keep up with the changing tastes. And given Singhania's penchant for speed, Raymond has a good chance of riding the readymade boom.