The 'Raymond brand' will remain with a new lifestyle firm

New Delhi, December 2 () Textile player Raymond said Monday that the ownership of the Raymond brand will remain with the new lifestyle company.

The company had previously announced that it divided consumer and lifestyle businesses into a separate entity.

Raymond consulted with industry and financial experts to reach an optimal structure in relation to the ownership of brands related to lifestyle businesses. Under the proposed scheme, together with the lifestyle business, 'Raymond' and all other brands that are currently used with respect to textiles, ready-made garments, the retail business related to the Lifestyle business, clothing services and allied accessories will be assigned and owned by Raymond Lifestyle Business, the company said in an EEB file.

Consequently, once the proposed scheme is approved by the National Law Law Court (NCLT), Raymond lifestyle companies will not have to pay royalties to Raymond Ltd for the use of the brands.

The ownership of the Raymond brand for all other companies (except Raymond Lifestyle Businesses) will remain at Raymond Ltd.

I am pleased to announce the management's decision to transfer ownership of the brand with use categories in the respective companies ... There will be no trademark licensing rights or royalty agreements between companies, said Gautam Hari Singhania, president and chief administrative officer of Raymond Ltd.

The company had previously announced the proposed merger of its main lifestyle business into a separate entity that will be listed through the mirror participation structure.

The new company will appear on the list and existing Raymond residual shareholders will obtain the shares of the new company on a 1: 1 basis.

The measure will create a clear demarcation of lifestyle and other businesses that will lead to the simplification of the group structure. The proposed scheme is subject to several regulatory and statutory approvals. SID BAL