Raymond Board of Directors Approves Company Consolidation


[ad_1]

The board of directors of Raymond Limitée has approved the consolidation of Tools and Equipment and Automotive Components activities in engineering activities to improve synergies and explore monetization options to deleverage Raymond Ltée. The overall objective is to create value for shareholders. The engineering business has achieved improved scale and market share in domestic and global markets. These activities have demonstrated growth in EBITDA margins, generated free cash flow and are debt free.

Our real estate business launched in 2019, which began land development in Thane, is now poised to grow with a focus on delivering a value-based offering. The real estate business will provide approximately 3 million square feet of residential projects and we have already achieved sales of over 70% of the launched inventory of approximately 2 million square feet. In no time we have seen good traction for the product we are offering. The Real Estate division is a profitable and sustainable business led by a team of experienced professionals with a clear long term strategy in place. The real estate activity now plans to capitalize on its strengths by expanding beyond Thane. To realize the high growth momentum of the real estate business, the board of directors also gave approval in principle for the spin-off of the real estate business division through a wholly owned subsidiary.

With a focus on accelerating the recovery from the pandemic, Raymond will consolidate its B2C activities by transferring the Clothing business to Raymond Ltd. This move will boost efficiency, streamline and simplify processes and bring synergies in terms of design and innovation, sourcing and retail. network.

In order to enable and execute the above decisions, the company has withdrawn the Lifestyle business split plan announced in November 2019. These actions will allow each of the businesses to monetize, which will fuel growth and deleveraging.

Commenting on this development, Gautam Hari Singhania, President and CEO, said: “Raymond believes in the development and growth of each of its activities. I am happy to share that our engineering business including tools and equipment and automotive components is poised for future growth. We are consolidating the business to explore all the options available to us for monetization, which will allow deleveraging leading to value creation. In addition, our Realty activity has demonstrated performance since its inception and in order to realize its full potential, it will now be a wholly owned subsidiary of Raymond Limitée. We continue to focus on our B2C business by providing operational efficiencies and synergies to strengthen our Lifestyle business.

Raymond Limited shares were last trading in BSE at Rs. 447.5 from the previous close of Rs. 440.2. The total number of shares traded during the day was 82,629 in more than 2,311 trades.

The share hit an intraday high of Rs. 456.2 and an intraday low of 442.3. The net turnover during the day was Rs. 37,137,469.

[ad_2]

About Joan Ferguson

Check Also

Purely Commentary: Free loan in Hebrew: Ready to help as recession looms

David Contorer Hebrew Free Loan Detroit (HFL) is here to help: HFL has been on …

Leave a Reply

Your email address will not be published.