Raymond Lifestyle To List Next Week, To See 15% Revenue Growth: Gautam Singhania
The Mumbai-based firm aims to open 800–900 new apparel and textile stores over the next three years.
Raymond Lifestyle Ltd., following its demerger with parent company Raymond Ltd., is all set to list next week, according to Managing Director Gautam Hari Singhania. The company had also announced a vertical split to demerge its real-estate business and expects to have three distinct listed companies next year.
Singhania discussed the demerger, saying that each company would have its own structure, strategy and team. He highlighted that the demerger is beneficial for shareholder value and offers investors the chance to focus on companies of their interest.
While Raymond is traditionally known for its fabrics, it has diversified into home furnishings, ethnic wear and sleepwear. Singhania expects these new categories to grow rapidly, contributing to "exponential growth" for the newly demerged company.
Gautam Hari Singhania, Chairman and Managing Director of Raymond Ltd. (Source: Vishal Patel/ NDTV Profit)
While Raymond's revenue from the lifestyle business was down 8%, with textiles taking an 18% hit during the first quarter of the current financial year, the company anticipates a 15% year-on-year revenue growth. "The idea is to grow the top line at 15% and Ebitda at 20% year-on-year," Singhania told NDTV Profit's Sajeet Manghat.
The Mumbai-based firm aims to open 800–900 new apparel and textile stores over the next three years, with its ethnic clothing brand, Ethnix, set to launch nearly 100 new stores this year alone. "We are very bullish in this space, we have a lot of growth opportunities and that's what we are focusing on," Singhania added.
Raymond Demerger
Raymond demerged its lifestyle business into Raymond Lifestyle, formerly Raymond Consumer Care Ltd. The scheme of demerger was completed on June 30.
Raymond Lifestyle was demerged from the parent and shareholders were given four shares of the face value of Rs 2 for every five shares of Rs 5 face value of the parent. After the demerger, Raymond and Raymond Lifestyle will be the two listed entities of the group.
Raymond has also announced a vertical split to demerge its real-estate business.
The demerger plan aims to exploit the growth potential of the real estate business and attract a fresh set of investors and strategic partners to participate in it, Raymond said. The current promoter ownership of the Mumbai-based garment maker is 49.01%.
