New Delhi (India), 28th April 2023: Godrej Consumer Products Ltd. is ready to pay Rs. 2,825 crore for Raymond Consumer Care Ltd.’s FMCG (Fast Moving Consumer Goods) division.
During a Slump sale the FMCG business was sold, which included brands such as Park Avenue Deo, KS Deo, Kamasutra, and Premium.
“This acquisition allows us to complement our business portfolio and growth strategy with underpenetrated categories that offer a long runway of growth,” said Sudhir Sitapati, Managing Director and CEO of Godrej Consumer Product Ltd.
RCCL, on the other hand, would keep its condom manufacturing facilities and continue contract manufacturing in Aurangabad, Maharashtra, for both domestic and international markets.
The CEO of GCPL stated that the transaction was completed based on the value of each share. The lifestyle business will be listed, and each shareholder of Raymond Limited will receive 4 shares of RCCL for every 5 shares held, based on the swap ratio.
Meanwhile, Raymond Ltd. has demerged the lifestyle sector and combined it with RCCL.
Raymond said in a statement, “The move to demerge the lifestyle business from Raymond Ltd. will enable the business to be net debt free and become an independently listed entity.”
The company further said that going forward Raymond Ltd. would primarily be a listed real estate firm with stakes in engineering and denim industry following the demerger of the leisure sector.
