by
Bloomberg
Published
September 2, 2024
Nearly 100-year-old Indian conglomerate Raymond Ltd is looking to list its apparel and real estate units by the end of 2025 as the founders look to boost shareholder value.
The group, which oversees a diverse mix of businesses ranging from engineering and aerospace to fashion and real estate, will list three entities by next year, after Raymond Lifestyle Ltd. starts trading in Mumbai on Thursday and the real estate unit prepares to list in 2025, Chairman Gautam Hari Singhania said in an interview.
The aim of the restructuring is to break up the conglomerate structure that has led to “weak valuations” for its businesses, he added. The parent company will retain its engineering and automotive components unit. Each investor will receive four Raymond Lifestyle shares for every five Raymond Ltd shares held.
The Mumbai-based business group, which started as a woolen mill in 1925 on the outskirts of the city, seeks to enhance value for shareholders as well as give them the option to invest only in selected Raymond companies but not others.
The parent company, whose shares have risen 89% this year, is recovering from a low in November when Singhania’s bitter separation from his wife sparked uncertainty among investors and slashed its market value.
Singhania said the corporate governance issues were “a thing of the past,” adding that the company was moving forward with its expansion plans. “Our company is targeting the 400 million-strong middle class in India,” he said.
Raymond Lifestyle, known for its luxury men’s suits and wedding wear, is looking to expand into the 750 billion rupee ($8.9 billion) menswear market and is banking on India’s huge wedding industry to drive its next phase of growth, according to Singhania. Its competitors include Vedant Fashions Ltd., which sells the popular wedding wear brand Manyavar, and Aditya Birla Fashion & Retail Ltd.
The apparel unit aims to double its earnings before interest, taxes, depreciation and amortization and open 900 new stores by 2028, he said. It currently has 1,518 stores in India and 48 stores abroad in seven countries, according to its latest annual report.