Mumbai: Gautam Singhania-run Raymond Group Thursday announced the sale of its three consumer care brands — the Kamasutra condoms and the grooming brands of Park Avenue perfumes and the KS deodorants — to the Godrej group for Rs 2,825 crore.
The company’s Chief Financial Officer Amit Agarwal said the deal is on a slump sale basis.
The company will continue to manufacture all these brands on a contract basis and sell them to Godrej Consumer Care from its Aurangabad plant. It will also continue to export these brands, especially the condoms, apart from continuing the B2B sale in the domestic market, he added.
The entire proceeds from the sale, which comes at almost 5x (5-fold) of its sales in FY22 (Rs 522 crore), will go to the company, Singhania said.
Gautam Singhania owns 49 per cent in Raymond Consumer Care and the rest is held by Raymond Ltd, which will be demerged from Raymond and listed after regulatory approvals, which he expects to be over in the next 12-15 months.
After the demerger, Raymond Ltd will hold the realty business, apparel manufacturing and JK Files while Raymond Consumer Care will handle all the lifestyle businesses.
Singhania said the proposed initial share sale of JK Files will not happen now following the demerger.
With the sale, the parent Raymond will become a debt-free company, he added.
As of December 2022, the company had gross debt of Rs 2,400 crore and a net debt of Rs 930 crore.
