Raymond Limited, a famous Indian company, is making a big change by dividing itself into three smaller companies. This will help each part focus on what it does best and grow faster.
What’s Happening?
| Company | Focus Area | Current Status | Future Plans |
|---|---|---|---|
| Raymond Realty | Real Estate | Sales: ₹2,300+ crores Profit: ₹500 crores Low debt, fast sales model | 100 acres under development (₹9,000 crores) Future projects worth ₹60,000 crores in 8 years |
| Raymond Lifestyle | Clothing and Fashion | Slowed sales (last 18 months) Virus attack hurt operations 350+ stores opened | Close 10–15% weak stores More spending on ads and promotions to boost sales |
| Engineering Business | Auto, aerospace, and industrial parts | Strong domestic sales Exports dropped recently | Expected growth of 15–20% Aerospace segment recovering and growing |
Raymond Realty (Real Estate): This part of the company builds and sells homes and offices. It is doing very well, with sales of over ₹2,300 crores recently and profits of ₹500 crores before some costs. They have many projects worth about ₹40,000 crores planned for the next 5 to 8 years. Their way of working is to build and sell quickly and collect money fast, so they don’t need to borrow money. People who own Raymond shares will get shares in Raymond Realty too.
Raymond Lifestyle (Clothing and Fashion): This part makes and sells clothes. It has faced some problems recently because people have been buying less for about 18 months. Also, a computer virus attack slowed down their work for almost a month. But now, things are starting to get better with more people buying clothes again. They opened over 350 stores in the last three years, but some stores are not making enough money yet. They plan to close 10-15% of the weaker stores and spend more on ads and promotions to increase sales.
Engineering Business: This part stays with Raymond Limited and makes parts for cars, airplanes, and other machines. They sell a lot to other countries, but exports dropped recently, which affected sales. However, sales inside India are good, and the airplane parts business is getting stronger after some earlier problems. They expect this business to grow by 15-20% in the next few years.
Real Estate Plans:
Raymond Realty is growing fast and expects to increase its sales by more than 20% every year. They own 100 acres of land where they are building projects worth ₹9,000 crores now, and they have plans for more projects worth ₹60,000 crores over the next eight years. They work with landowners to redevelop buildings, but only start building after getting all the necessary government approvals. This careful approach helps avoid delays. Their project in Nirmal Nagar is going well, with many homes already sold.
What’s Next?
By splitting into three companies, investors can choose to invest in the part they like best. While the clothing business has some short-term problems, the real estate and engineering parts look strong and ready to grow. Raymond’s focus on not borrowing money and working efficiently gives them confidence for the future. In short, Raymond Limited’s plan to become three focused companies will help each business grow better and create more value for shareholders.
