Gautam Singhania led Raymond group is looking to list its consumer goods business as a separate entity, sources said. The company, which has been consolidating and operating its FMCG business under Raymond Consumer Care, is working to scale it up and take it to the next level of growth.
According to CNBC-TV18 sources, the aim is to hit about Rs 1,000 crore of revenues through FMCG by 2022. The FMCG business generates about Rs 650 crore of revenues at present.
Post the scale-up, Raymond may explore listing the FMCG business as a separate entity, sources added.
Earlier, Raymond group has announced the restructuring of its core lifestyle business and listing into a separate entity.
Raymond’s FMCG business houses brands like Park Avenue, KamaSutra, KS Deos and Premium.
In this direction, the company is looking to expand the Park Avenue brand into skincare as well as haircare sub segments. All these launches are likely to be in the male grooming category.
Sources said that Raymond is also exploring plans to enter the women’s colour cosmetics segment. It is also in final stages of entering into licensing and distribution agreements with 4-5 global perfume brands. Raymond recently brought global perfume brand Tonino Lamborghini to India.
Confirming plans to scale-up the FMCG business, a Raymond Consumer Care spokesperson said, "As we have stated earlier that we see a significant potential in FMCG Business, we have charted out a medium term strategy and growth plan. Post buying out Ansell stake, we are now integrating our FMCG business under Raymond Consumer Care. This will bring in operational efficiencies and synergies will be drawn through backend consolidation and channel strengthening. "
The company plans to make new launches in a phased manner and will also look at ramping up distribution across trade channels including – modern trade, general trade as well as company owned stores.
"With strong FMCG brands in our portfolio, we are exploring all opportunities to grow the business exponentially. However it would be premature to get into specifics at this point in time. Enhancing shareholder value is a continuous journey at Raymond and we are committed to unlock value through our business strategies," the spokesperson added.