Godrej Consumer Products Limited (GCPL) will acquire the FMCG business of Raymond Consumer Care Limited (RCCL) for ₹2,825 crore to get a foothold into the deodorants and sexual wellness categories in India.
The Raymond’s FMCG business is being sold to GCPL along with the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra and Premium, through a slump sale.
Sudhir Sitapati, Managing Director and CEO, GCPL, said: This acquisition allows us to complement our business portfolio and growth strategy with under-penetrated categories that offer a long runway of growth. Raymond is a leading player in the deodorants and sexual wellness categories with brands like Park Avenue and KamaSutra. These categories have the potential to deliver double-digit multi-decade growth given the low per capita consumption in India compared to similar emerging markets.”
Demerger of Lifestyle business
Meanwhile, Raymond today announced the demerger of its Lifestyle business to RCCL to create a listed entity. The Lifestyle business consists of Suiting business with manufacturing plants, B2C Shirting and MTM businesses, branded apparel including garmenting business with manufacturing facilities and B2B Shirting business with manufacturing plants. RCCL will also retain its condom manufacturing facility and will continue to do contract manufacturing in Aurangabad, Maharashtra for both domestic and international markets. Post demerger of the Lifestyle Business, Raymond Ltd would primarily be a listed real estate company with investments in engineering and denim business.
The move to demerge the Lifestyle Business from Raymond Limited will enable the business to be net debt free and will become an independently listed entity.