Raymond Ltd. has modified its proposed demerger scheme following traders’ considerations.
As per the modifications, the demerged Way of life Enterprise can personal and use the Raymond model for textile, attire and retail classes with out paying any royalty to Raymond Ltd. Tailoring providers and allied equipment may also be assigned the Raymond model title.
“Consequently, once the proposed scheme is approved by the NCLT, Raymond Lifestyle Business will not be required to pay any royalty to Raymond Ltd, for the use of the brand. Raymond brand ownership for all the other businesses (except for Raymond Lifestyle Businesses) will remain with Raymond Ltd.,” Raymond Ltd. stated in an announcement.
“As an organisation, we are proactive in addressing the concerns of all our stakeholders and as a routine process, we spoke to our key investors and took cognisance of all the inputs we received from them. I am happy to announce the management’s decision of moving brand ownership with usage categories in respective companies,” stated Gautam Hari Singhania, CMD, Raymond Ltd.
“Consequently, the brand ownership of Raymond for all the lifestyle-related categories post demerger will be with the demerged, new lifestyle company. There will be no inter-company brand licencing right or royalty contracts,” he added.
Not too long ago, Raymond Ltd. introduced the demerger of its core Way of life Enterprise right into a separate firm which might be listed by way of mirror shareholding construction. Each shareholder of Raymond Ltd. might be issued the shares of the brand new firm within the ratio of 1:1.