100 Not Out: Demergers Setting Raymond Group Up For The Future, Says Gautam Singhania

The iconic textile and lifestyle company, often dubbed "The Complete Man," has managed to stay relevant through changing times. Under the leadership of managing director Gautam Singhania, the Raymond Group embarked on a strategy to split its operations into three distinct entities: lifestyle, real estate, and engineering. The goal? To unlock value, attract better investors, and create a sustainable structure for the future.

"We always wanted to spin the three companies off into three different listed entities," Singhania told NDTV Profit. "By doing so, we attract quality investors, avoid the conglomerate discount, and create a governance structure with the best rewards system where people are rewarded for their division's individual performance."

The iconic textile and lifestyle company, often dubbed "The Complete Man," has managed to stay relevant through changing times. Under the leadership of managing director Gautam Singhania, the Raymond Group embarked on a strategy to split its operations into three distinct entities: lifestyle, real estate, and engineering. The goal? To unlock value, attract better investors, and create a sustainable structure for the future.

"We always wanted to spin the three companies off into three different listed entities," Singhania told NDTV Profit. "By doing so, we attract quality investors, avoid the conglomerate discount, and create a governance structure with the best rewards system where people are rewarded for their division's individual performance."

This move comes on the heels of a commitment fulfilled ahead of schedule. Raymond had become debt-free two years ahead of its 2025 target. "When we sold the FMCG business, I reinvested 100% of my proceeds into the business, and that helped us turn entirely debt-free," said Singhania.

The demerger strategy has already won favor with the markets, which increasingly prefer specialised, pure-play companies. With the lifestyle business already demerged earlier this year, and the real estate division expected to follow by mid to third quarter 2024, Raymond is setting itself up for a new era.

But for Singhania, the transformation isn't just about financial prudence—it's also about the company's legacy. "My elder daughter is 19, and I don't know if she's coming into the business or not. Even if she doesn't, the system we're building will ensure the company thrives for all shareholders."