Godrej Consumer Products Ltd. will acquire the FMCG business of Raymond Consumer Care Ltd. (RCCL) for ₹ 2,825 crore.
The FMCG business which includes brands such as Park Avenue Deo, KS Deo, Kamasutra and Premium have been sold through slump sale.
RCCL would, however, retain its condom manufacturing facility and continue contract manufacturing in Aurangabad, Maharashtra for both domestic and international markets.
Raymond Ltd. meanwhile has demerged the lifestyle business and merged it with RCCL.
“The move to demerge the lifestyle business from Raymond Ltd. will enable the business to be net debt free and become an independently listed entity,” the company said in a statement.
“Post demerger of the lifestyle business, Raymond Ltd. would primarily be a listed real estate company with investments in engineering and denim business,” the company said in a statement.
The lifestyle business comprises suiting business with manufacturing plants, B2C shirting and MTM businesses, branded apparel with a portfolio of brands and subsidiaries, including garment business with manufacturing facilities and B2B shirting business with manufacturing plants. These units would be merged into RCCL.
Gautam Hari Singhania, CMD, Raymond Ltd. said, “In line with our commitment for creating shareholder value, we have taken an affirmative action by demerging our lifestyle business that will be a separate listed entity with zero net debt. The realty business will also be the listed entity through Raymond Ltd.”
“At promoter level, we continue to remain committed, and the efforts have been demonstrated by infusing funds generated from monetization of assets,“ he added
Going forward, the lifestyle business that now moves under RCCL would be listed and each shareholder of Raymond Ltd. will get 4 shares of RCCL for every 5 shares held based on the swap ratio suggested by independent valuers KPMG and BDO, the company said.
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