New Delhi: Raymond Textiles & Apparel Ltd said on Monday that its board of directors approved a consolidation exercise, which includes combining its automotive tools, instrumentation, and components business with its engineering businesses to enhance synergies and explore monetization options. In addition, the board of directors also approved the consolidation of its business-to-consumer (B2C) business by transferring the apparel business to Raymond Ltd, the company said in a statement.
He added that as part of the fiscal year, the real estate business division will be subsidiaries in a wholly-owned subsidiary.
Commenting on the development, Raymond Ltd President and CEO Gautam Hari Singhania said that the company’s engineering business, which includes automotive tools, hardware, and components, has performed well and is poised for future growth…
He added: “We are supporting companies to explore all the options available to us to generate income, which will allow less indebtedness and generate value.”
In a regulatory filing, the company said its board of directors approved the consolidation of the automotive tools, hardware, and components business of JK Files (India) Ltd, a wholly-owned subsidiary.
“With a focus on the fast track, Raymond’s post-pandemic recovery will consolidate its B2C business by moving the apparel business to Raymond Ltd.”
It will be carried out by separating the B2C businesses, including apparel, from Raymond Apparel Ltd (RAL), a wholly-owned subsidiary, on the basis of a going concern to merge with the same company.
“This move will drive efficiencies, streamline and streamline operations, and bring synergy benefits in terms of design and innovation, sourcing, and the retail network,” said Raymond Ltd.
In order to enable and implement the aforementioned decisions, the company said it has “withdrawn the lifestyle business spin-off plan announced in November 2019. These actions will allow both companies to generate revenue that will enhance growth and reduce leverage. “.
Singhania said: “We continue to focus on our B2C business by achieving operational efficiencies and synergies to enhance our lifestyle business.”