Business

Raymond allows lifestyle entity to own brand

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Firm’s move follows investors’ concerns

Raymond Ltd. has modified its proposed demerger scheme following investors’ concerns.

As per the changes, the demerged Lifestyle Business can own and use the Raymond brand for textile, apparel and retail categories without paying any royalty to Raymond Ltd. Tailoring services and allied accessories will also be assigned the Raymond brand name.

“Consequently, once the proposed scheme is approved by the NCLT, Raymond Lifestyle Business will not be required to pay any royalty to Raymond Ltd, for the use of the brand. Raymond brand ownership for all the other businesses (except for Raymond Lifestyle Businesses) will remain with Raymond Ltd.,” Raymond Ltd. said in a statement.

“As an organisation, we are proactive in addressing the concerns of all our stakeholders and as a routine process, we spoke to our key investors and took cognisance of all the inputs we received from them. I am happy to announce the management’s decision of moving brand ownership with usage categories in respective companies,” said Gautam Hari Singhania, CMD, Raymond Ltd.

“Consequently, the brand ownership of Raymond for all the lifestyle-related categories post demerger will be with the demerged, new lifestyle company. There will be no inter-company brand licencing right or royalty contracts,” he added.

Recently, Raymond Ltd. announced the demerger of its core Lifestyle Business into a separate company which will be listed through mirror shareholding structure. Every shareholder of Raymond Ltd. will be issued the shares of the new company in the ratio of 1:1.

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Printable version | Dec 15, 2019 9:31:08 PM | https://www.thehindu.com/business/raymond-allows-lifestyle-entity-to-own-brand/article30141924.ece

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