Raymond board okays consolidation exercise

Fabrics and garments major Raymond Ltd on Monday said its board has approved a consolidation exercise, including the combination of its tools and hardware, and auto components businesses with its engineering business to improve synergies and explore monetisation options.

Besides, the board has also approved consolidation of its business-to-consumer (B2C) venture by transfer of apparel business into Raymond Ltd, the company said in a statement.

As part of the exercise, the real estate business division will be subsidiarised into a wholly-owned subsidiary, it added.

Commenting on the development, Raymond Ltd Chairman and Managing Director Gautam Hari Singhania said the company's engineering business comprising tools and hardware, and auto components has demonstrated good performance and it is poised for future growth.

"We are consolidating the business to explore all options available to us for monetisation, which will enable deleveraging leading to value creation," he added.

In a regulatory filing, the company said its board has approved the consolidation of the tools and hardware, and auto components businesses into JK Files (India) Ltd, a wholly-owned subsidiary.

"With a focus to fast track the recovery post pandemic Raymond will consolidate its B2C business by transfer of apparel business into Raymond Ltd." It will be carried out by demerging the B2C business, including apparels, of Raymond Apparel Ltd (RAL) to merge with the company itself.

"This move will strengthen efficiencies, streamline and simplify processes and bring in synergy benefits in terms of design and innovation, sourcing and retail network," Raymond Ltd said.