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Raymond demerges core lifestyle biz

Nov 19, 2019
Raymond demerges core lifestyle biz

Raymond said it will demerge its core lifestyle business into a separate listed entity to simplify the group structure and create investor opportunities. The new entity, Raymond Lifestyle, will bring all its existing branded textile, apparel and garment businesses under one umbrella, said Gautam Hari Singhania, Raymond’s Chairman and Managing Director.

After the split, Raymond will retain its real estate project, land in Thane, and manufacturing of shirts for B2B customers, auto components, tools and hardware, along with the denim and consumer goods businesses. The Mumbai-based conglomerate also said that it has raised around Rs 350 crore through a preferential share allotment to JK Investo Trade (India), which is part of the promoter group firm, to pare debt of Rs 2,777 crore.

“One thing I have consistently said in the last three years is we want to create shareholder value. First thing we need to do is monetise some assets. The question I have been consistently asked is what we are doing with the land. We will do whatever we can to monetize the land,” Singhania said.

On 9 October, the company announced selling a 20-acre land parcel in Mumbai’s Thane area to Xander-backed Virtuous Retail South Asia (VRSA) for Rs 700 crore. It owns a total of 120 acres in the area. Raymond owns 125 acres of land in Thane and has been looking at ways to monetise the asset either through an outright sale or by developing it in a phased manner. In April last year, the company announced its entry into the real estate development business with plans to develop a 3000 unit-residential project on a 20 acre plot.