Godrej Consumer Products will acquire Raymond’s consumer care business in an all-cash deal for Rs 2,825 crore. The deal is expected to be completed by May 10.

Gautam Singhania-run Raymond Group will sell three FMCG brands — the Kamasutra condoms and the grooming brands of Park Avenue perfumes and the KS deodorants — to Godrej on a slump-sale basis.

Slump sale is the transfer of one or more undertakings for a lump-sum consideration without values being assigned to the individual assets and liabilities in such sales.

Raymond has two fundamental businesses — lifestyle and real estate.

Raymond said it will demerge its lifestyle business to Raymond Consumer Care Ltd (RCCL), which will be listed on the bourses.

Shareholders of Raymond will get 4 shares in RCCL for every five shares they hold in Raymond.

RCCL will be net debt free after the sale of the FMCG brands to Godrej, with the proceeds to be invested in the demerged entity. It will comprise the suiting and apparel businesses.

After the demerger, Raymond Ltd would primarily be a listed real estate company with investments in the engineering and denim business.

Gautam Hari Singhania, chairman and managing Director Raymond Limited said: “In line with our commitment for creating shareholder value, we have taken an affirmative action by demerging our lifestyle business that will be a separate listed entity with zero net debt.”

“At Raymond Group, the realty business will also be the listed entity through Raymond Limited. At promoter level, we continue to remain committed, and the efforts have been demonstrated by infusing funds generated from monetization of assets.”

Sudhir Sitapati, managing director and CEO, GCPL, said: “This acquisition allows us to complement our business portfolio and growth strategy with under-penetrated categories that offer a long runway of growth.”

“Raymond is a leading player in the deodorants and sexual wellness categories with brands such as Park Avenue and KamaSutra. These categories have the potential to deliver double-digit multi-decade growth given the low per capita consumption in India compared to similar emerging markets,” he said.

The plan

■ Raymond to demerge lifestyle business to Raymond Consumer Care Ltd

■ Sell the FMCG business of Raymond Consumer Care to Godrej

■ Raymond Consumer Care to be listed

■ Raymond itself to become realty company