Textile and apparel firm, Raymond has proclaimed to demerge its lifestyle segment into a separate entity that will be listed on stock exchanges.
The move will create a clear demarcation of lifestyle and other businesses, leading to the simplification of the group structure, VC Circle reported citing Raymond's statements in a stock-market disclosure.
"Demerging the core lifestyle business is an affirmative step towards enhancing performance and delivery across verticals," Gautam Hari Singhania, Chairman and Managing Director at Raymond, said in an interview with VC Circle.
The new company will house the branded textile, branded apparel and garmenting businesses. The existing company will retain a real estate project, the Thane land bank, the business-to-business shirting business, and the denim and FMCG business. It will also retain the engineering businesses of auto components and tools and hardware, the media report cited Raymond's statements.
Under the new proposition, stakeholders of Raymond will be issued precisely equal count of stakes in the new firm.
Raymond manages other prominent brands such as ColorPlus, Parx and Park avenue. The clothing brand asserts to have one of the biggest exclusive retail nexus in the nation with more than 1,500 stores in over 600 towns and cities