Singhania, 58, is in the midst of a settlement dispute with estranged wife Nawaz Modi Singhania, 54, after announcing their separation in November. Her removal from the boards of some group companies recently was due to a “loss of confidence” in her, he told ET in an interview.
“I am not going to comment on what has happened between us. I am fully focused on my businesses, and look at the results,” he said. “All the businesses are growing. My personal life is my personal life, I will deal with it. I have two beautiful daughters, and in their interest, I refused to comment. My personal life does not concern anyone in the business space.”
The Raymond stock hit a low of ₹1,666 on the BSE on November 22 last year amid reports that Nawaz Modi Singhania had sought a 75% share of the assets. The scrip has recovered since then. On May 3, it was at ₹2,227.45, down 3.17% from the previous day.
Organisational Restructure | page 6
Three privately held Raymond Group companies – JK Investors (Bombay), Raymond Consumer Care, and Smart Advisory and Finserve – ousted Nawaz Modi Singhania from their boards early in April. They reappointed Gautam Singhania as managing director effective July 1, 2024.
Nawaz Modi Singhania didn’t respond to queries. She has accused her husband of physically assaulting her and one of their daughters in September last year. They were married in 1999.
As for her directorship at listed Raymond, Gautam Singhania said it’s up to the company’s board, “which has a good set of independent directors.”
The ₹10,000-crore Raymond Group is on an upswing, he said. Its lifestyle division, which includes apparel and fabric, accounts for the dominant share, while the new real estate business shows promise of emerging bigger, he said. “Our group businesses are growing fast,” said Singhania.
He also spoke about the group’s organisational structure. “We have rebuilt the organisation and have strong governing boards. In the last 36 months, we have had new inductees on the board. Each of our businesses have CEOs and once scalable, will be spun off into SBUs (strategic business units),” said the CMD.
Singhania said Mumbai offers redevelopment opportunities worth about $2 trillion. “In Breach Candy (south Mumbai) alone, I am bidding for projects worth Rs 5,000 crore – my bids have gone in. Lagi toh lagi, nahi lagi toh nahi lagi,” he said. “Mumbai was built 60-80 years ago. What was the best of the best then, is a slum now. The value of Sophia College Lane (where Singhania’s JK House is located) redevelopment could go up to $2 billion.”
Raymond completed the acquisition of Maini Precision Products in the March quarter to enter the aerospace, defence and electrical vehicle components segment. After consolidation, Raymond aims to set up two units, one of which will focus on aerospace and defence, while the other will cater to auto components and engineering consumables.
“My job is problem solving and simplifying matters for group professionals,” he said. “The success of our real estate business is that I bring speed to the table. We deliver on time, give more than expected value to consumers and have the backing of a well-funded balance sheet. We come from a manufacturing mindset. I have delivered a project two years ahead of the delivery time and the RERA chairman has also given us a certificate acknowledging the same.”
Raymond posted consolidated profit of ₹229 crore in the March quarter, up from ₹194 crore a year ago.
“The group has got enough cash to invest,” he said. “Now that the balance sheet is totally clean, we have enough money to invest. I am sitting on cash. My net worth is over ₹5,000 crore. (It’s) very different from when I couldn’t have ₹5 crore, three years ago.”
Apart from his marital issues, Singhania is also estranged from father Vijaypat Singhania, although he posted a photo of the two of them in March. The CMD said he does not let his personal life distract him at work. “I take each day as it comes. I feel if you do the right thing, you sleep well,” he said.
Gautam Singhania is not bullish about ecommerce. “Post-Covid, people are back in the stores – we have opened 200 (Raymond) stores,” he said. “This year, my target is to open 300 stores in India. It is seen as very happening to open a store in the UK, but it is expensive. My franchisees are ready to open 20 stores in the Middle East, but that’s not my priority.”
He also praised Prime Minister Narendra Modi for boosting the country’s growth. “We are the third-largest economy,” he said. “What Modiji has done is phenomenal.”
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