Raymond CEO for lifestyle business Sanjay Behl quits, stock down by 4.3%

Sanjay Behl, Chief Executive Officer for lifestyle business at fashion and textile retailer Raymond Ltd, has decided to step down from his current role after serving for seven years.

"This development is a natural transition as we are in the process of forming a new company that is focussed on lifestyle business as part of the demerger process at Raymond Group," the company said in a statement.

"While we are in the process to appoint a new CEO, Behl has agreed to help in the transition and a seamless handover."

Raymond Group announced the demerger recently and has already initiated the process of completing formalities for listing the new lifestyle entity Raymond Lifestyle Ltd.

The lifestyle business through a new listed company will have the existing business of branded textiles, branded apparel and garmenting.

"Raymond is managed by a strong team of professionals and we are confident of hiring the best-in-class CEO for the proposed listed entity as we embark on a new phase of transformation at Raymond Reimagined," said Chairman and Managing Director Gautam Hari Singhania.

Raymond is India's largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabrics and garmenting.

It has some of the leading brands within its portfolio -- Raymond Ready to Wear, Park Avenue, ColorPlus, Parx, Raymond Made to Measure among others.

Raymond has one of the largest exclusive retail networks in the country with over 1,500 stores across 601 towns.

At 10:30 am, the company's stock was trading 4.37 per cent lower at Rs 421 apiece.

Brand Raymond ownership will remain with new demerged lifestyle business

Textile player Raymond on Monday said ownership of Raymond brand will remain with the demerged new lifestyle company.

The company had earlier announced hiving off the consumer and lifestyle businesses into a separate entity.

Consequently, once the proposed scheme is approved by the National Company Law Tribunal (NCLT), Raymond lifestyle business will not be required to pay any royalty to Raymond Ltd for its use of the brands.

"Raymond' brand ownership for all the other businesses (except for Raymond Lifestyle Businesses) will remain with Raymond Ltd.

"I am happy to announce the management's decision of moving brand ownership with usage categories in respective companies...There will be no intercompany brand licencing rights or royalty contracts," Raymond Ltd Chairman & Managing Director Gautam Hari Singhania said.

The company had earlier announced the proposed demerger of its core lifestyle business into a separate entity that will be listed through mirror shareholding structure.

The new company will be listed and the existing shareholders of residual Raymond will get the shares of the new company on a 1:1 basis.

The move will create a clear demarcation of lifestyle and other businesses leading to the simplification of the group structure.

The proposed scheme is subject to various regulatory and statutory approvals.