Winning Bizness Desk
Mumbai. Talking about the Rs 2,825 crore deal with Godrej Consumer Products on Thursday, Gautam Singhania, president and MD of Raymond Limited, said that he has killed three birds with one stone. Notably, through this deal, he has transferred brands like KS, Kamasutra and Park Avenue Deodorants to Godrej Consumer Products. Gautam Singhania said that he has been able to fulfill three objectives simultaneously with this deal. Firstly, we have been able to sell it. Now the income from this lifestyle business will become debt free. Then we will strengthen the group's business with demerger and subsequent listing. Men's wellness and grooming brands like Kamasutra and Park Avenue were doing well for the company, yet when asked about the reason for selling them, Singhania replied, "Why can't we sell?" He said, “We are in the business of making money. We had been wanting to sell this business for some time and this was a good opportunity for Godrej and us. Singhania said that the shareholders of the company will benefit from this deal and this is their priority.
Shirting vertical been demerged
With this sale, Park Avenue as a brand will have two separate offerings in the men's grooming segment and as a suiting, shirting brand. However, both the brands will no longer be in separate groups. Further, the shirting vertical within Raymond has been demerged and will be listed as a separate entity on the exchanges as RCCL. Singhania said that the Park Avenue brand will help both the parties and nothing will change for the customers. So, it's a win for all. On the question of selling his brands Godrej Consumer Products, Gautam Singhania said that “It is a great way to show that we are not emotionally attached to the business while we have feelings for our business. Everything is for sale if the price is right."
Raymond to focus in real estate
Raymond Limited's focus will now be completely in real estate. With the positive response to its initial phase of construction near Thane, Mumbai, which is also Raymond's second home, the company has high hopes from this business. He said real estate would become a very serious business for us. The initial steps have been successful and are now moving forward together. However, the company still retains its largest condom manufacturing unit in Aurangabad, Maharashtra. Kamasutra will now supply condoms to GCPL and some international customers.
