High power costs is making a negative impact on Raymond's manufacturing unit based at Udwada in Valsad, which is one of the largest worsted suitings plants in India. The company has now said to have approached the Chief Minister of Gujarat Anandiben Patel, requesting the state government to resolve the issue.

The power rate is so high that the company is deliberating over whether to carry out the Rs 300 crores expansion plans, which was planned for its Gujarat unit. The company may now invest in its unit in Maharashtra. The company began facing issues after to source electricity at low rates after the restriction on open access in parts of the state, especially South Gujarat. Open access allowed consumers to procure power from independent power producers using government's transmission lines paying charges towards the same. The Gujarat government last year decided not to allow open access citing high load on transmission lines.

According to Raymond, the power cost increased by 50 per cent since 2006. The per unit cost increased from Rs 5.40 in 2006 to Rs 8.70 now, which also heavily increased the manufacturing cost. The power supplied by Gujarat distribution companies' costs around Rs 8.10 per unit, while the cost of power purchased from open market is around Rs 5 per unit.

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