As a part of the rejig and debt reduction measure, Raymond Consumer Care has decided to sell its FMCG business - the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra and Premium, through a slump sale to Godrej Consumer Products Ltd for Rs 2,825 crore.
However, Raymond Consumer Care will retain its condom manufacturing facility and will continue to do contract manufacturing in Aurangabad, Maharashtra for both domestic and international markets.
Selling its fast moving consumer goods (FMCG) business, and demerging of Raymond Ltd's lifestyle business to Raymond Consumer Care Ltd while retaining real estate business and investments in engineering and denim are the rejig actions announced by Raymond Group to have two debt-free listed companies.
The lifestyle business of Raymond Ltd that will be passed on to Raymond Consumer Care consists of suiting business with manufacturing plants, B2C shirting and MTM businesses, branded apparel with its portfolio of brands and subsidiaries including garment business with manufacturing facilities and B2B shirting business with manufacturing plants.
In exchange, the shareholders of Raymond Ltd will get 4 shares of Raymond Consumer Care for every 5 shares held.
Post rejig, Raymond Ltd would primarily be a listed real estate company with investments in engineering and denim business.
With this transaction, the Raymond group promoters shall have invested around Rs 1,400 crore through asset monetisation reflecting commitment towards Raymond Group, Raymond Ltd said.
Raymond Ltd Chairman and Managing Director Gautam Hari Singhania said: "In line with our commitment for creating shareholder value, we have taken an affirmative action by demerging our lifestyle business that will be a separate listed entity with zero net debt. At Raymond Group, the realty business will also be the listed entity through Raymond Ltd. At promoter level, we continue to remain committed, and the efforts have been demonstrated by infusing funds generated from monetisation of assets."
(With inputs from IANS)
