Raymond Group sells its FMCG business to Godrej Group for Rs 2,825 crore
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This means that it will produce on contract for Godrej Consumer Products (GCPL). Raymond Group also announced the demerger of its lifestyle businesses from Raymond Consumer Care (RCCL), following which the company will be listed.
Gautam Singhania-led Raymond Group on Thursday sold three of its iconic brands Park Avenue, Kamasutra and DS to Godrej Group for Rs 2,825 crore while exiting the FMCG business. However, Raymond Group will continue to manufacture, sell directly to companies and export all these three brands. This means that it will produce on contract for Godrej Consumer Products (GCPL). Raymond Group also announced the demerger of its lifestyle businesses from Raymond Consumer Care (RCCL), following which the company will be listed.
The group estimates that the process will be completed in the next 15 months. Singhania said that the entire proceeds from this sale would go to RCCL. Singhania holds 49 per cent stake in Raymond Consumer Care while the rest is held by Raymond Limited. In a separate statement, Godrej Consumer Products (GCPL) said with this acquisition it will enter the deodorant and sexual health segment. Godrej Group expressed hope that the sale could be completed by May 10, 2023. Amit Agarwal, chief financial officer, Raymond, said the deal was done on an outright sale basis and not on a unit-by-unit basis.
The company will continue to manufacture these brands on contract basis and sell them to Godrej Consumer Care from its Aurangabad plant, he added. Sudhir Sitapati, CEO and MD, GCPL, said the acquisition would help in furthering the business portfolio and growth strategy. He said that this deal will open two big categories for them.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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