30 August 2024, Mumbai
With plans to expand presence by adding 900 stores, Raymond Lifestyle targets an annual sales growth of 12-15 per cent and an operating profit of 18-20 per cent in next three years, says to GautamSinghania, Chairman.
Internal challenges in China and Bangladesh, as well as new trade agreements with the UK, European Union, and Australia present the company with new growth opportunities, opines Singhania.
Last year, Raymond divested its FMCG business to Godrej Consumer for Rs 2,825 crore and subsequently announced the demerger of its lifestyle and real estate businesses. The engineering segment, following the acquisition of Maini Precision, remains within the existing listed entity.
The demerger unlocks shareholder value by establishing a focused lifestyle business entity, enabling investors to concentrate on this specific sector. The standalone entity, supported by a professional management team, helps sharpen focus on the lifestyle segment, explains Singhania.
The previously combined entity did not achieve the anticipated valuations, as sector-specific funds showed little interest in diversified businesses. Now, with three separately listed companies, each is poised to unlock shareholder value through focused professional management, strong net cash positions, and optimised costs and working capital, Singhania adds.
