How Raymond Group's CFO Unlocked Massive Value Through Restructuring

Raymond Group’s CFO Amit Agarwal in a candid conversation with The Financial Express (CFO) described how he steered the company through restructuring – reducing Rs 2700 crore in debt, unlocking market capitalisation from Rs 1600 crore to Rs 30,000 crore, and cutting fixed costs of Rs 400 crore on a sustainable basis while creating three focused listed entities. 

The company reported a net profit of Rs 7,635 crore in FY 24-25 from Rs 1,643 crore a year ago. As the conglomerate gears up for FY26, Agarwal’s outlook is that the real estate arm, Raymond Realty is heading for a planned listing in Q2 FY26 and has the potential to double in size over the next 3 to 4 years. 

On the engineering business (in aerospace, defense, and EV components), he said, “We're working on critical components for India, and based on what we’ve achieved in FY24-25, we see this business also doubling over the next 3–4 years. The auto engineering and consumables segment is entering a high-growth phase as well.”

In the lifestyle business focus is on expansion in India to serve the domestic market in the next 2 to 3 years.  Demerger of its lifestyle business to a separate company called Raymond Lifestyle is effective from June 30. 

While the suiting and shirting vertical remains mature, it may not double in 3 to 4 years, but he shared, “We expect steady growth of around 10% to 13% annually from FY24–25 onward.” Edited Excerpts.

Your journey from being a CFO to becoming Deputy CEO at Jet Airways and later CEO at JSW Steel Coated Products before joining Raymond as CFO in 2020 is rare. Typically, the path moves from CFO to CEO, so what motivated that decision?

At JSW, the CEO role was quite operational, with limited scope, since it was a subsidiary and key functions like raw material sourcing were handled by the parent company. In contrast, the CFO role at Raymond has been deeply transformational. 

When I joined, Raymond’s market cap was around Rs 1,600 crore, and it touched Rs 30,000 crore at its peak. We became debt-free, created three listed entities, grew EBITDA from Rs 600 to 700 crore to Rs 1,700 to Rs 1,800 crore; acquired aerospace and defence business which is in sunrise sector and exited FMCG businesses strategically, and also turned the real estate arm which was primarily on our land bank into a Joint Development Agreement (JDA)-led business, laying the foundation of long term shareholder value creation. 

For me, it’s less about the title and more about where I can drive real value. That’s what drew me back to a CFO role. For me, it’s simple—do what you love most, and that’s what I’ve chosen to do.

Experience as a CEO gave a more holistic view, balancing immediate execution with strategic foresight. As a finance function, you're typically in a support role, but having led cross-functional teams helped me bring a more integrated, business-first mindset to finance, so the CEO role sharpened it further.

As CFO, how did you sustain stakeholder confidence across investors, employees, and partners during such a complex transition? 

Once the business logic is clear, financial structuring, execution, and stakeholder communication follow naturally—and that’s how we navigated this transformation.

Firstly, financial decisions must be driven by sound business and strategic rationale. Whether it's a demerger, acquisition, or sale, the primary question is: Will this make the business stronger, more sustainable, and future-ready?

When I joined Raymond, the group was in a tough spot with Rs 2,700 crore in debt, internal challenges, and then COVID hit. The first 12 to 15 months were tactical: cost-cutting, stabilizing operations. During this period, we created a 7-year roadmap with a clear focus: to be in three core businesses where we could be among the top players or have a clear plan to get there in the next few years 

FMCG is a scale-driven business, we couldn't build that scale organically, so when we got the opportunity to sell it at 80x EBITDA, it made strategic and financial sense. It also aligned with our promise to become debt-free by 2025—a goal we achieved ahead of time.

From an investor’s point of view, we had to simplify. Most institutional investors follow specific themes like consumer, real estate, or industrials. But when all three are bundled into one small-cap company, many funds won’t even look at it. So we knew demerging was essential to unlock value.

We also ensured each demerged company had a high-quality board and management team. Good governance was key, especially as each entity needed to chart its growth path. Employees, too, saw the benefits. 

We've not only become debt-free, but also built cash reserves of Rs 1,500 crore and created growth opportunities across verticals—from ethnic wear and innerwear in lifestyle, to expanding store networks and JDA projects in the real estate business. 

Even franchisees and distributors have greater confidence as they see the momentum. In engineering, we followed the same principle: we needed scale. So we acquired Maini Precision Products Limited (MPPL) (a 59.2 percent stake), growing that vertical into a Rs 2,000 crore business with exposure to aerospace, defense, and EVs. It gives us a platform to build on and be a top-three player in that space, too.

Is this restructuring complete? Are there any other plans for this?

At a high level, the restructuring is largely complete. But my vision has always been to build pure-play businesses. Engineering is the last piece still in progress. 

The principle is simple: businesses should be listed or made independent only when they’re strong enough to withstand external pressures. Engineering is a solid, profitable business, but it still needs a bit more work. At the right time, we will find an appropriate path to unlock shareholder value there as well. 

What is happening in the engineering space so far?

Raymond Ltd. holds JK Files, which in turn owns Ring Plus Aqua (RPAL). Under RPAL, we acquired Maini Precision Products Ltd. (MPPL) (with 59.2 percent stake). To unlock synergies, we decided to merge these three entities. 

At the same time, we're demerging the aerospace and defense business, which is different from the engineering consumables and auto components segments. This restructuring is expected to be completed in July. Post-restructuring, Raymond will have two engineering subsidiaries. 

Importantly, since we lacked deep engineering expertise internally, Mr. Gautam Maini was brought in after the acquisition and has now taken on the role of Managing Director across all three engineering businesses. Instead of a full cash transaction, we structured the deal as a merger, and Gautam Maini's family retained a 29% stake. This aligns his interests with the company’s and incentivizes him to drive performance and value creation for all stakeholders.

What has been the financial cost of Raymond’s restructuring, and what was the value add? 

The significant financial cost of restructuring was stamp duty. Other charges, like consulting fees, were relatively minor in comparison. 

(In terms of value add) We reduced our fixed costs by over Rs 400 crore on a sustainable basis. In 2020, our fixed cost base was around Rs 2,400 crore. Through efficiency measures and restructuring, we brought that down to Rs 2,000 crore. And now, even as we deal with inflation and invest in growth—hiring more people, expanding operations—we’re building on a leaner base of Rs 2,000 crore, not the original Rs 2,400 crore. 

So the reduction is not just one-time; it’s a structural shift that supports long-term efficiency and scalability.

Raymond (engineering and real estate businesses) was valued at around Rs 10,000 crore, and today, just the engineering business within that is valued at Rs 4,000 to Rs 4,500 crore. 

When the real estate business gets listed, we believe its standalone valuation will be significantly higher than the residual value currently embedded in Raymond.  

What is the most critical role of a CFO in such transformations? And what advice would you give to other CFOs navigating similar journeys?

As a CFO, clearly articulate the business rationale to the board and the promoters. You have to be convinced that it’s the right decision strategically.

Once that's aligned, execution becomes key. Our demergers, for example, were completed in under 12 months, including listing timelines. That speed requires relentless focus and precision.

You also have to manage costs carefully. A single misstep—especially with tax or regulatory frameworks—can be very expensive. It’s essential to evaluate every angle thoroughly and ensure full compliance.

Third, ensure there’s no business disruption. All stakeholders—employees, partners, lenders—must be kept informed and aligned. You need to spend time explaining the rationale to employees: how this creates more capital, larger roles, and growth potential for them.

In our case, raising capital for real estate would have been difficult if bundled under one mixed entity. But, as a standalone company, real estate investors now see value and are willing to fund growth.

Lastly, as CFO, while not doing all the legwork themselves, they must lead from the front, guiding the team, stepping in when needed, and communicating effectively with banks, regulators, and investors.