Textile player Raymond on December 2 said ownership of the Raymond brand will remain with the demerged new lifestyle company.
"Raymond consulted with industry and financial experts to arrive at an optimal structure in relation to ownership of brands related to lifestyle businesses. Under the proposed scheme, along with the lifestyle business, 'Raymond' and all other brands currently being used in respect of textiles, readymade garments, retail business related to Lifestyle business, tailoring services and allied accessories will be assigned to and owned by Raymond Lifestyle Business," the company said in a filing to the BSE.
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.
(With inputs from PTI)
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