Singhania family feud fails to dampen Raymond's growth but looks headed for court

By

Isabelle Crossley

Published
Jan 3, 2019

The Raymond Group has seen a deep family feud threaten its leadership but the textile and apparel giant’s performance has remained strong throughout. However, Vijaypat Singh now aims to take the matter to court.

The Raymond Group feud began when the business’ head Vijaypat Singhania gifted control of the entire group to his son Gautam Singhania three years ago. Shortly after the transfer of ownership, Gautam Singhania fell out with his father who then accused him of cheating him out of an apartment and then of removing him from the business’ offices and stealing his possessions. Now Vijaypat has announced that he will take the matter to court and try to get back his controlling stake in the business. Vijaypat will test a new Indian court ruling that allows parents to take back gifts given to their children should their basic needs not be met.

It was Vijaypat Singhania that grew Raymond’s business from a small textile firm to one of India’s largest businesses in the industry and, according to the business itself, the world’s largest producer of worsted wool suits. The business has also grown to encompass a number of other sectors such as technology and dairy.

Since handing over his 37 percent controlling stake in the business to his son in 2015, Vijaypat Singhania has spoken of his regret concerning his decision. He recently called his decision “the height of stupidity,” as reported by APF news.

Throughout the feud, Raymond has maintained its growth and reported a 50 percent rise in profits for the second half of 2018. The business is also expanding its manufacturing facilities and recently opened a plant in Ethiopia. Raymond Group also now exports to over 55 countries.

The case will sure be drawn out but the result could set a precedent for how India’s family owned businesses operate in future.