Posted by Dr. Vishesh Rawat
Raymond is planning to sell stakes in its apparel and engineering subsidiaries to private equity (PE) funds to unlock value, according to Gautam Singhania, chairman and managing director of the 84-year-old textile company. “Talks with PE funds will be initiated at the appropriate time,” Singhania said. He declined to comment about expected valuations, stake to be offloaded and other details. Raymond Apparel, the company’s wholly-owned subsidiary that owns brands, such as Manzoni, Park Avenue, Parx and ColorPlus, has an annual revenue of Rs 350 crore. Engineering subsidiary JK Files & Tools, which was hived off into a separate company last month, has a turnover of Rs 225 crore. Proceeds from the proposed equity sale will be used to fund expansion plans of the two subsidiaries. Raymond Apparel plans to set up 88 small-format stores in the next one year, a company official said. It is also looking at repositioning the operations of its ColorPlus brand. Raymond, which is working on a restructuring plan to boost revenues and nudge back to profits, is also exploring the possibility of combining garmenting business with the flagship textile business. “This is too early. But it may be a possibility,” Singhania said.
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