NEW DELHI: Textile major Raymond on Monday said its board has approved plans to consolidate the tools and hardware and auto components businesses into engineering business for improving synergies and exploring monetisation options for deleveraging the company.
“The overall objective being value creation for shareholders, The engineering business has achieved scale and improved market share in both domestic and global markets. These businesses have demonstrated growth in EBITDA margins, generated free cash flows and are debt free,” the company said in a regulatory filing.
Additionally, the company would consolidate its B2C business by transfer of Apparel Business into the flagship company Raymond. The company has now withdrawn the demerger scheme of Lifestyle business announced in November 2019. “We continue to focus on our B2C business by bringing in operational efficiencies and synergies to strengthen our Lifestyle business,” said Gautam Hari Singhania, Chairman & Managing Director of Raymond Ltd.
Raymond board has also in principle approved the conversion of the real estate division into a wholly-owned subsidiary as the company looks for growth in this space. Launched in 2019, Raymond claims its real estate business will deliver around 3 million sq. ft. of residential projects and they have already achieved sales of over 70% of launched inventory of 2 million sq. ft. “Real Estate business now plans to capitalise on its strengths by extending beyond Thane.
To achieve the high growth momentum in real estate business, the board has also given an in principle approval for subsidiarisation of real estate business division through a wholly owned subsidiary,” said the company. Hit hard by the pandemic, Raymond had reported a consolidated net loss of `157.10 crore for the quarter ended June 2021 as against net loss of `247.60 crore during the June quarter of the previous fiscal.