Godrej Consumer buys Raymond Consumer Products for Rs 2,825 crore

28 Apr 2023 , 10:12 AM

Guatam Singhania led Raymond Group on Thursday announced that the company has exited from the consumer care business for Rs 2825 crore. In the deal, the company sold its men’s personal care brand Park Avenue, as well as wellness brands KS, KamaSutra and Premium to Godrej Consumer Products Limited  (GCPL). This will help the later to reach more shoppers beyond its soaps and insecticides portfolio.

However, Raymond will continue to manufacture these brands, sell them to B2B consumers and export. This means that Raymond will contract-manufacture and sells these brands to Godrej Consumer Care. It also means that the company only exits from consumer facing side and not manufacturing.

The company manufactures condom in its Aurangabad plant in Maharashtra. 

Raymond also announced the demerger of its consumer facing/lifestyle businesses into Raymond Consumer Care (RCCL), which will get listed post merger. Raymond shareholders will get four shares of the RCCL for every five shares they hold.

A portion of the money will be used to completely repay the net debt of the group, which as of December 2022 stood at Rs 920 crore, and gross debt of Rs 2,000 crore.