'Raymond model' to stay with new demerged life-style agency

NEW DELHI: Textile participant Raymond on Monday mentioned possession of Raymond model will stay with the demerged new life-style firm. The corporate had earlier introduced hiving off the buyer and life-style companies right into a separate entity.

“Raymond consulted with trade and monetary specialists to reach at an optimum construction in relation to possession of manufacturers associated to life-style companies. Below the proposed scheme, together with the lifestyle business, ‘Raymond’ and all different manufacturers at the moment being utilized in respect of textiles, readymade clothes, retail enterprise associated to Way of life enterprise, tailoring providers and allied equipment will likely be assigned to and owned by Raymond Way of life Enterprise,” the corporate mentioned in a BSE submitting.

Consequently, as soon as the proposed scheme is authorised by the National Company Law Tribunal (NCLT), Raymond life-style enterprise is not going to be required to pay any royalty to Raymond Ltd for its use of the manufacturers.

“Raymond’ model possession for all the opposite companies (apart from Raymond Way of life Companies) will stay with Raymond Ltd.

“I am happy to announce the management’s decision of moving brand ownership with usage categories in respective companies…There will be no intercompany brand licencing rights or royalty contracts,” Raymond Ltd Chairman & Managing Director Gautam Hari Singhania mentioned.

The corporate had earlier introduced the proposed demerger of its core life-style enterprise right into a separate entity that will likely be listed by way of mirror shareholding construction.

The brand new firm will likely be listed and the prevailing shareholders of residual Raymond will get the shares of the brand new firm on a 1:1 foundation.

The transfer will create a transparent demarcation of life-style and different companies resulting in the simplification of the group construction.

The proposed scheme is topic to numerous regulatory and statutory approvals.

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