Latest News | Taking Steps to Issue NCDs to Rebalance Debt Mix in Favour of Long-term Debt: Raymond

New Delhi, June 10 (PTI) Textiles and apparel major Raymond Ltd on Wednesday said it is taking steps to issue non-convertible debentures (NCDs) to support rebalancing its debt mix in favour of long-term debt after recently raising Rs 145 crore through similar instruments.

In a regulatory filing disclosing the impact of COVID-19 pandemic, the company said its suiting and shirting fabric manufacturing plants continue to remain shut due to subdued demand, although garmenting facilities have partially resumed operations.

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The company said it has undertaken cost rationalisation and various cost control measures related to sales and marketing, manpower, rentals and others to minimise the impact of the pandemic on business.

On its liquidity position, Raymond said it is "taking all requisite measures to manage liquidity that includes cost reduction, fund management and focus on collections".

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The company is looking at all available options that include long-term funding and alternate working capital availability to manage liquidity in the current situation.

"The company is in the process of taking steps to issue NCDs that would support rebalancing its debt mix favouring long-term debt. Recently, the company has raised Rs 145 crore through NCDs at market benchmarked rates," the filing said.

During lockdown 1.0 and 2.0, all retail stores in the company's branded textile and apparel network remained shut and gradual reopening began from lockdown 3.0 onwards, wherein government permitted sale of certain non-essential items, including fabric and apparel, in specified geographies.

"Currently, around 65 per cent of Raymond stores have reopened and the company is adhering to all COVID-19 related guidelines for employees and customers," it said.

At present, suiting and shirting fabric manufacturing plants continue to remain shut due to subdued demand, it said, adding that "the management is evaluating production planning to reopen the plants in a phased manner".

With regards to garmenting business, the company said its facilities have partially resumed operations under stringent health protocols and safe distancing measures as per government directives.

The company said it fulfilled export orders till the third week of March 2020 before the lockdown.

The manufacturing operations were halted in India and Ethiopia after the global spread of the pandemic because of which certain export dispatch schedules were deferred due to retail shutdown, especially in the US and Europe markets.

For real estate business, Raymond said it has initiated pre-monsoon preparedness activity at sites and construction work will pick up with availability of the migrant labour.

As for FMCG business, the company said it has launched a range of sanitising products, including hand cleansers, hand wash and high alcohol content cologne meeting the highest safety standards, affordability and ease of usage for consumers.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)