The Board of Raymond has approved consolidation of tools & hardware and auto components businesses into engineering business for improving synergies and exploring monetisation options for deleveraging Raymond.
The overall objective is 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’s real estate business launched in 2019 which started development of land in Thane is now poised for growth with a focus on delivering a value-based offering.
The real estate business will deliver around three million sq ft of residential projects and it has already achieved sales of over 70 percent of launched inventory of around two million sq ft.
The Real Estate business now plans to capitalise on its strengths by extending beyond Thane. To achieve the high growth momentum in the real estate business, the board has also given an in-principle approval for subsidiarisation of real estate business division through 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.
This move will strengthen efficiencies, streamline and simplify processes and bring in synergy benefits in terms of design & innovation, sourcing and retail network.
In order to enable and execute the above decisions, the company has withdrawn the de-merger scheme of lifestyle business announced in November 2019.
These actions will enable each of the businesses for monetisation which will fuel growth and deleveraging.