Raymond to demerge lifestyle business
Textile and apparel major 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 will hold on to its real estate projects, the Thane land bank, its B2B shirting business, the engineering businesses of auto components, tools and hardware, denim and FMCG.
Commenting on the development, Gautam Hari Singhania chairman & managing director at Raymond Limited in a statement said, "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 structure. We remain resolute to take the right steps to enhance value creation for our shareholders."
Sanjay Bahl group chief financial officer added, "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."
Raymond is planning to scale up its lifestyle business which has textile, apparel and garment segments both in domestic and global markets.
Currently, the lifestyle business has a network of over 1500 stores across more than 600 cities in India.
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