Raymond Apparel to hold 74% in ColorPlus

Raymond has decided to divest its 74.1 per cent stake in ColorPlus Fashions to its wholly-owned subsidiary Raymond Apparel, as a part of its initiative to consolidate its apparel business.

The decision to hive off the majority shareholding was taken at the company's board meeting held today, it informed the Bombay Stock Exchange (BSE).

The Rs 1,400 crore Raymond group was among leaders in textiles, apparel and engineering files and tools in the country. In addition, it is into prophylactics and toiletries.

Raymond had acquired the 74.1 per cent stake in ColorPlus Fashions in 2003, making it its subsidiary. The acquisition gave Raymond a presence in casual and premium casual wear range.

Industry sources said the decision to transfer its stake in ColorPlus was contrary to the perception that Raymond would acquire the balance stake in the company.

Since inception in 1994 ColorPlus, a leading premium men's wear branded apparels company, has managed to grow in the face of stiff competion.

Rayond Apparel has three men's wear brands in its portfolio namely Park Avenue, Parx and Manzoni, while ColorPlus is one of the leading domestic brands for premium casual wear in the country. Established in 1994, it had a turnover was Rs 66.08 crore in 2003-04.

Earlier, Raymond has signed joint venture agreement with French company MOB Outilage SA and Italian company Lanificio Fedora S.p.a. The agreement with MOB is to manufacture files and rasps in India at a project cost of Rs 21 crore, where French major would hold 10 per cent stake in the venture.

The agreement with Lanificio Fedora envisages setting up a 50:50 venture for manufacturing and sale of blankets, shawls and carded woollen fabrics at a cost of Rs 39.91 crore at Jalgaon, Maharashtra.

In addition to ColorPlus, other subsidiaries of Raymond are J K Ansell and J K Helene Curtis.