New Delhi
The Board of Raymond has approved plans to consolidate the company’s tools and hardware and auto components businesses into engineering business. The company planned this for improving synergies and exploring monetisation options for deleveraging the company. 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 The company has now withdrawn the demerger scheme of Lifestyle business announced in November 2019.
Gautam Hari Singhania, Chairman & Managing Director, Raymond Ltd, said that, they would continue to focus on their B2C business by bringing in operational efficiencies and synergies to strengthen the Lifestyle business.
Raymond board has also 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. Their 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. Hit hard by the pandemic, Raymond had reported a consolidated net loss of 157.10 billion for the quarter ended June 2021.
Source: The New Indian Express
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