Raymond to consolidate tools & hardware, auto parts business into engineering biz
In an official statement, Raymond Limited said the objective behind the move is to create value for shareholders
- Sep 27, 2021,
- Updated Sep 27, 2021 10:22 PM IST
Raymond Limited announced on Monday that its board has approved to consolidate the company's tools & hardware and auto components businesses into the engineering business for improving synergies and exploring monetisation options for deleveraging the firm.
In an official statement, the firm said the objective behind the move is to create value for shareholders. "The engineering business has achieved scale and improved market share in both domestic and global markets. These businesses have demonstrated growth in EBITDA margins, generated free cash flows and are debt-free," noted the firm.
Gautam Hari Singhania, Chairman & Managing Director, said, "Raymond believes in nurturing and growing each of its businesses. I am happy to share that our Engineering business comprising of Tools & Hardware and Auto Components has demonstrated good performance and it is poised for future growth. We are consolidating the business to explore all options available to us for monetisation, which will enable deleveraging leading to value creation."
Raymond's real estate business, which it launched in 2019, is poised for growth with a focus on delivering value-based offerings, said the firm. "The real estate division is a sustainable and profitable business led by experienced professional team with a clear long term strategy in place. Real estate business now plans to capitalise on its strengths by extending beyond Thane," it said.
In order to achieve high growth momentum in the real estate business, the board has also given an in-person approval for subsidisation of the firm's real estate business division through a wholly-owned subsidiary of the company.
With a focus to fast-track the recovery post-pandemic, the company will consolidate its B2C business by transfer of the apparel business into Raymond Limited. "This move will strengthen efficiencies, streamline & simplify processes and bring in synergy benefits in terms of design & innovation, sourcing and retail network," said the statement.
The firm said in order to execute these decisions, it withdrew the de-merger scheme of lifestyle business announced in November 2019.
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Raymond Limited announced on Monday that its board has approved to consolidate the company's tools & hardware and auto components businesses into the engineering business for improving synergies and exploring monetisation options for deleveraging the firm.
In an official statement, the firm said the objective behind the move is to create value for shareholders. "The engineering business has achieved scale and improved market share in both domestic and global markets. These businesses have demonstrated growth in EBITDA margins, generated free cash flows and are debt-free," noted the firm.
Gautam Hari Singhania, Chairman & Managing Director, said, "Raymond believes in nurturing and growing each of its businesses. I am happy to share that our Engineering business comprising of Tools & Hardware and Auto Components has demonstrated good performance and it is poised for future growth. We are consolidating the business to explore all options available to us for monetisation, which will enable deleveraging leading to value creation."
Raymond's real estate business, which it launched in 2019, is poised for growth with a focus on delivering value-based offerings, said the firm. "The real estate division is a sustainable and profitable business led by experienced professional team with a clear long term strategy in place. Real estate business now plans to capitalise on its strengths by extending beyond Thane," it said.
In order to achieve high growth momentum in the real estate business, the board has also given an in-person approval for subsidisation of the firm's real estate business division through a wholly-owned subsidiary of the company.
With a focus to fast-track the recovery post-pandemic, the company will consolidate its B2C business by transfer of the apparel business into Raymond Limited. "This move will strengthen efficiencies, streamline & simplify processes and bring in synergy benefits in terms of design & innovation, sourcing and retail network," said the statement.
The firm said in order to execute these decisions, it withdrew the de-merger scheme of lifestyle business announced in November 2019.
Also Read: RBI slaps Rs 2 cr penalty on RBL Bank for deficiencies in regulatory compliance
Also Read: BPCL plans to invest Rs 1 lakh cr over 5 years to become future-ready