58 THE WEEK • JULY 14, 2019
BUSINESS
RAYMONDgoing to be traction for that,” he said.
The company is planning to continue
monetising its sizeable landholdings.
Analysts have been bullish on
Raymond’s growth prospects.
“Raymond exceeded guidance
expectations for the last
two fiscals. With minimal
capex and no large
expenditure required for
the commencement of
the real estate project, the
management expects the
company to be free cash
flow positive in fiscal 2020,”
said Thomas Abraham of
Karvy Stock Broking. Investors,
however, would continue to be
watchful of the land monetisation
plans and the reduction in
Raymond’s debt.
The Singhanias have been in the
spotlight recently for the troubled
relations between Gautam and his
father, Vijaypat, and an ongoing
legal battle. At the heart of it is the
company’s family-owned property,
JK House, in the upscale Breach
Candy area in Mumbai. Vijaypat
gifted his 37 per cent stake in
Raymond to Gautam four years
ago. Under an earlier agreement to
settle a family dispute, Vijaypat was
supposed to get an apartment in JK
House. However, Gautam advised
Raymond’s board against selling the
asset below market price. Things
further deteriorated last year, when
Vijaypat was removed as chairman
emeritus of Raymond.
The junior Singhania said that his
father was not removed as chairman
emeritus, but he ceased to be so for
not attending board meetings. “He
defaulted as per SEBI guidelines and
he did not attend four consecutive
board meetings,” said Singhania.
“The law of the land says if you don’t
attend four consecutive board meet-
ings or for a period of 12 months
you are absent from the board of a
company, by default you cease to be
a director of the company. That isMAYE
MNAASDBRAthe law of the land and that is exactly
what happened.”
Raymond has gone to court
seeking to stop the publication
of Vijaypat’s biography, The
Incomplete Man; the company
has alleged that the book is
defamatory. The matter is
sub judice. Singhania said
he was “open for a reso-
lution” of any issues with
his father. But he insisted
that family and company
were separate. “As a son to
a father I will do whatever I
have to do, and as managing
director of the organisation, I
will do what needs to be done for
the organisation. The two do not
need to cross paths,” he said.
Singhania wants to keep the
attention to what Raymond has
achieved under him. He was
appointed managing director in- In 2000-01, Raymond’s revenue
was 0 1,302 crore. In 2018-19, it was
0 6,708 crore.
The promoters hold 44.28 per
cent of Raymond. Singhania has
been stepping back from day-to-day
operations in key Raymond group
companies, leaving professional
managers in charge. Recently, he
stepped down as chairman of Ray-
mond Apparel. “Generally, you have
to realise what your role is and our
job is to get the best people in the
company, deliver the best results and
that is what we are doing,” he said.
When Singhania is not steering
Raymond, he is mostly seen in the
driver’s seat of one of his super
cars. Last year, he was elected to the
Federation Internationale de l’Au-
tomobile, and is keen on promoting
motor sport in India. “I have now got
involved in the governance of motor
sport globally and am trying to push
it aggressively in India,” he said. “I
think we are seeing a lot of traction,
getting a lot more events, and I hope
in the next year or two we will have a
little bit more momentum.”
As a son to
a father I will
do whatever I
have to do, and
as managing
director of the
organisation, I will
do what needs to
be done for the
organisation. The
two do not need
to cross paths.
Gautam Singhania, on the
tussle with his father, Vijaypat