Brand Raymond to remain with new demerged lifestyle firm
today Dec 2, 2019
Textile and apparel firm Raymond has stated that the ownership of its Raymond brand will remain with the demerged new lifestyle company.
In November, Raymond as part of its restructuring exercise has demerged its lifestyle business into a separate entity. The lifestyle entity will be listed through mirror shareholding while the shareholders of the company will be issued shares of the new company in the ratio of 1:1.
"Raymond consulted with industry and financial experts to arrive at an optimal structure in relation to the ownership of brands related to lifestyle businesses. Under the proposed scheme, along with the lifestyle business, 'Raymond' and all other brands currently being used in respect of textiles, readymade garments, retail business related to lifestyle business, tailoring services and allied accessories will be assigned to and owned by Raymond Lifestyle Business," the company said in a BSE filing.
Commenting on the announcement, Raymond Ltd’s chairman Gautam Hari Singhania in a statement said, “I am happy to announce the management's decision of moving brand ownership with usage categories in respective companies. There will be no intercompany brand licencing rights or royalty contracts.”
Raymond expects the demerger of its lifestyle business to bring in new investors to the company to fuel its expansion plans. Currently, the lifestyle business has a network of over 1500 stores across more than 600 cities in India.
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