'My personal life is mine, does not concern anyone', says Gautam Singhania

Gautam Singhania, chairman and managing director of Raymond, said that his personal life does not concern anyone in the business space as he is in the middle of a settlement dispute with his estranged

Gautam Singhania, the chairman and managing director of fabric and apparel giant Raymond, has said that his personal life has nothing to do with his businesses. Amidst ongoing settlement disputes with his estranged wife, Nawaz Modi Singhania, the 58-year-old business tycoon also underscored Raymond's substantial transformation and growth since the Covid-19 pandemic era.

In a recent interview with The Economic Times (ET), Singhania declined to delve into the details of his personal matters, emphasising his unwavering dedication to steering Raymond's success. "I am not going to comment on what has happened between us. I am fully focused on my businesses and look at the results. All the businesses are growing. My personal life is my personal life; I will deal with it. I have two beautiful daughters, and I refused to comment in their interest. My personal life does not concern anyone in the business space."

Singhania's remarks come amidst reports of a rift with his estranged wife, Nawaz Modi Singhania, which led to her removal from the boards of select group companies. Explaining her departure, Singhania cited a "loss of confidence" in her performance.

Raymond's organisational restructure

Three privately held Raymond Group companies - JK Investors (Bombay), Raymond Consumer Care, and Smart Advisory and Finserve - ousted Singhania's estranged wife, Nawaz Modi Singhania,  from their boards early in April. They reappointed Gautam Singhania as managing director effective July 1, 2024.

Nawaz Modi Singhania has yet to respond to queries regarding the ongoing developments. 

Addressing concerns regarding Nawaz Modi Singhania's directorship at Raymond, which is listed, Singhania reiterated that such decisions rest with the company's board, which boasts "a  good set of independent directors."

Raymond Group on the ascendancy

Singhania exuded confidence in Raymond Group's trajectory, highlighting the dominance of its lifestyle division and the promising outlook of its burgeoning real estate arm. "Our group businesses are growing fast," Singhania told ET.

Furthermore, Singhania also spoke about the group's organisational revamp, emphasising the infusion of fresh talent and the establishment of robust governing boards. "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]," he said.

He added that 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," he added.

Raymond also completed the acquisition of Maini Precision Products in the March quarter to enter the aerospace, defence and electric vehicle components segment. After consolidation, Raymond aims to set up two units, one focusing on aerospace and defence while the other catering to auto components and engineering consumables.

 

Gautam Singhania 'sitting on cash' 

"My job is problem-solving and simplifying matters for group professionals," he said, adding, "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 this."

Raymond posted a consolidated profit of Rs 229 crore in the March quarter, up from Rs 194 crore a year ago.

"The group has got enough cash to invest. Now that the balance sheet is totally clean, we have enough money to invest. I am sitting on cash. My net worth is over Rs 5,000 crore. It's very different from when I couldn't have Rs 5 crore three years ago," he said.