Possession of Raymond model to stay with life-style firm

By Specific Information Service

NEW DELHI: ADDRESSING shareholders’ issues, textile main Raymond stated on Monday that its demerged core life-style enterprise will personal the Raymond model for the textile, attire and retail classes. With this association, the Raymond Way of life enterprise is not going to be required to pay a royalty to the mum or dad Raymond Ltd.

Earlier, traders had expressed issues on cost of royalty after the group introduced demerger of the approach to life enterprise into a brand new unit. Raymond Ltd will proceed to personal the model in different companies, together with actual property.

“Raymond’s brand ownership for all the other businesses (except for Raymond Lifestyle Businesses) will remain 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 inter-company brand licensing rights or royalty contracts,” Raymond Ltd Chairman and Managing Director Gautam Hari Singhania stated.
Each shareholder of Raymond Ltd. shall be issued shares of the brand new firm within the ratio of 1:1. The transfer will create a transparent demarcation of life-style and different companies, resulting in the simplification of the group construction, the agency stated.

The brand new firm can have the companies of branded textiles, branded attire and garmenting, whereas the prevailing firm will retain actual property initiatives, Thane land financial institution, B2B shirting enterprise, engineering companies of auto elements and instruments and {hardware}, denim and FMCG companies.
The proposed scheme is topic to numerous regulatory and statutory approvals.

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