In the post-deal agreement, Raymond Limited has decided to demerge its lifestyle business to Raymond Consumer Care Ltd (RCCL).
As part of the agreement, Raymond Ltd will sell its well-known trademarks, including Park Avenue deodorant and Kamasutra condoms, to Godrej,
Godrej Consumer Products Ltd ( GCPL) announced on Thursday that it is buying Raymond Consumer Care Ltd consumer products division for Rs 2,825 crore, expanding its portfolio of brands in the nation’s quickly expanding retail industry. As part of the agreement, Raymond Ltd will sell its well-known trademarks, including Park Avenue deodorant and Kamasutra condoms, to Godrej, to clear its debt and reduce the number of business lines.
According to CNBC-TV18, this deal is expected to be completed by May 10. With this GCPL, will soon be fostering its entry into the men’s grooming and sexual wellness category. This will serve as one more plus point in Godrej’s consumer business portfolio.
This veteran company after being founded in1897, set its foot in the consumer goods industry in 2001. Today, it has a wide range of consumer products in several industries such as Home care, hair care and personal care. And through this recent acquisition, Godrej will be looking for sales profit in the upcoming year.
“ This acquisition allows us to complement our business portfolio and growth strategy with underpenetrated categories that offer a long runway of growth,” said Sudhir Sitapati, Managing Director and CEO of Godrej Consumer Product Ltd.
Whereas to form a listed firm with a pure B2C focused lifestyle business, Raymond Limited said in a separate statement that it has decided to demerge its lifestyle business to Raymond Consumer Care Ltd (RCCL). The decision to demerge the lifestyle business from Raymond Limited will allow the company to become net debt free and an independently listed organisation.
“We have taken an affirmative action by demerging our lifestyle business that will be a separate listed entity with zero net debts,” said Gautam Hari Singhania, Chairman and Managing Director of Raymond Limited.
After the lifestyle sector is separated, Raymond Ltd. will largely operate as a publicly traded real estate corporation with investments in the engineering and denim industries.
GCPL CEO said that the deal was done on the basis of the value of each share. Lifestyle business that moves under RCCL is to be listed and each shareholder of Raymond Limited will get 4 shares of RCCL for every 5 shares held based on the swap ratio.
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