Raymond Restructures its Business by Demerging its Core Lifestyle Business into a Separate Entity
CEO Insights team
Established in 1925, Raymond has enjoyed the patronage of a billion consumers. With over 1500 stores across 601 towns, it’s one of the largest exclusive retail networks in the country. This demerger is expected to unlock the potential of the core lifestyle business. The existing company will retain all other businesses like real estate projects, Thane land bank, B2B Shirting, engineering of auto components and tools & hardware, denim, and FMCG.
“For over three years now, we have been relentless in building the organization that is future ready and our efforts have been unwavering during this transformational journey despite multiple challenges. As we continue to build capacities for enhanced performance and delivery across verticals, demerging the core Lifestyle Business is an affirmative step towards that direction and this will also simplify the Group
With this demerger Lifestyle Business will be well positioned to capitalize on the emerging opportunities through newer capabilities across the entire value chain of ‘Fibre to Fashion’
structure. We remain resolute to take right steps to enhance value creation for our shareholders,” comments Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited on this development.
Speaking about the financial metrics that this development will lead to, Sanjay Bahl, Group Chief Financial Officer, Raymond Limited says, “In line with our stated strategy of asset monetization, the infusion of net proceeds of JKIT land sale in Raymond Limited will help us in debt reduction leading to better operational efficiencies. As our balance sheet will get leaner, it will lead to a better profitability at the group level. The demerger of the Lifestyle Business will enable the Demerged Company and the Resulting Companies to have focused strategy and specialization for sustained growth and the ability to attract investors for better access to capital.”
Elaborating the benefits of this development for the business, Sanjay Behl, CEO Lifestyle Business, Raymond Limited remarks, “As this iconic brand is nearing its 100th year of existence, the Lifestyle Business is at the cusp of scaling-up exponentially to leverage its true potential. With a large network of over 1500 stores across more than 600 towns and cities, Raymond Lifestyle Business offers an integrated play in the textile, apparel and garmenting segments both in domestic and global markets. With this demerger Lifestyle Business will be well positioned to capitalize on the emerging opportunities through newer capabilities across the entire value chain of ‘Fibre to Fashion’.”