The Gautam Singhania-led Raymond Group has announced the demerger of its lifestyle business to RCCL to create a listed entity with pure play B2C focused lifestyle business.

The Lifestyle business consists of suiting business with manufacturing plants, B2C shirting and MTM businesses, branded apparel with its portfolio of brands and subsidiaries including garmenting business with manufacturing facilities and B2B shirting business with manufacturing plants will be demerged into RCCL.

Raymond has decided to sell its FMCG business, which is under RCCL, along with trademarks - Park Avenue Deo, KS Deo, Kamasutra & Premium - to GCPL through a 'slump sale'.

RCCL will retain its condom manufacturing facility and will continue to do contract manufacturing in Aurangabad, Maharashtra for both domestic and international markets.

The Lifestyle Business that now moves under RCCL will be listed and each shareholder of Raymond will get 4 shares of RCCL for every 5 shares held based on the swap ratio approved by the board of the company.

Raymond stated that the move to demerge the lifestyle business from the company will enable the business to be net debt free and to become an independently listed entity.

Post demerger of the lifestyle business, Raymond would primarily be a listed real estate company with investments in engineering and denim business.

Gautam Hari Singhania, chairman and managing director, Raymond, 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.

At Raymond Group, the Realty business will also be the listed entity through Raymond Limited. At promoter level, we continue to remain committed, and the efforts have been demonstrated by infusing funds generated from monetization of assets."

Raymond is India's largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabrics and garmenting. The group has presence in engineering space engaged in precision engineered products with an expansive presence in national as well as international markets. Raymond forayed into realty sector through the launch of its maiden project TenX - an 'aspirational district' spread across 14 acres housing approximately 3,100 residential units and has recently launched a premium residential project – The Address by GS.

Raymond's consolidated net profit fell 5% to Rs 94.84 crore in Q3 FY23 as against Rs 100.28 crore in Q3 FY22. Net revenue from operations increased 17.62% YoY to Rs 2168.16 crore in the quarter ended 31 December 2022.