Tuesday, May 2, 2023

Raymond is splitting up and selling Kamasutra and Park Avenue

Gautam Singhania, a textile tycoon, is splitting Raymond into two entities, one for real estate and one for the legacy fabric & apparel business. He is likewise selling the antiperspirants and sexual wellbeing portfolio alongside the Park Avenue and Kamasutra brand names, which is under Raymond Customer Care (RCC), to GCPL for Rs 2,825 crore.

In 1925, the legacy company established a modest woolen mill in Thane, a suburb of Mumbai. Singhania is separating it from Raymond while maintaining the flagship's four-year-old real estate venture. Even though he is leaving the fast-moving consumer goods sector, he is reorganizing his empire to concentrate on the core lifestyle, real estate, and engineering businesses.

He will move the texture &apparel business to the firmly held RCC, which will be recorded, with Raymond investors getting four portions of RCC for each five offers held in the leader. In fiscal 2022, the fabric and apparel company had revenue of Rs 3,679 crore and an operating profit of Rs 416 crore.

Raymond will still have real estate and investments in the denim and engineering industries following the transfer (JK Files and Engineering had filed draft IPO documents with the Securities and Exchange Commission but had put its plans for listing on hold). In fiscal 2022, the real estate division made an operating profit of Rs 143 crore.

The restructuring will also result in Raymond eliminating all of its net debt. This is because RCC will acquire not only the fabric and apparel unit's assets but also its Rs 932 crore liabilities. Singhania intends to invest RCC, 49 of which he owns, with the proceeds from the sale of the FMCG business. 6%. The remaining 52 Raymond owns 4 percent (47. 6 percent) and others 6%). RCC will be debt-free on a net basis thanks to the new funding.

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