Raymond invests Rs 61.68 cr in RLCL

Suiting fabric maker Raymond has invested Rs 61.68 crores in Raymond Luxury Cottons (RLCL) by subscribing to equity shares. As speculated earlier, the company also confirmed appointment of Sanjay Bahl as Chief Financial Officer (CFO) after M Shivkumar resigned from the post.

“RLCL has allotted the equity shares and the investment of Raymond Limited in the equity share capital of RLCL now stands at Rs 127.68 crores constituting 75.69 percent of the equity capital,” Raymond said in a BSE filing. Bahl's appointment was effective from November 16, 2015. Bahl, a chartered accountant has over 25 years of experience in FMCG, fertilisers, construction products and retail.

Of late, Raymond is shifting its energies to refurbish its stores, while investing in marketing and advertising initiatives to drive margins and woo the young audience. The company’s focus on ‘Made to Measure’ personalised clothing stores are also expected to contribute positively to the company’s bottomline in future. Though costs on these new initiatives may pressure margins in this segment in the short term, according to the analysts, improved performance could boost sales and profitability in the long-term.