Raymond is a very famous name around the world as a well furnished and elegant suit. Raymond Group is an Indian branded fabric and fashion retailer, incorporated in 1925. Then Raymond started its journey and became known throughout the world by the former chairman of the company Mr. Vijaypat Singhania. Not only Raymond Group, but the “Singhania” family is also well featured.
Three years ago Vijaypat Singhania handed over Raymond Ltd. to his son Gautam Singhania. But destiny did not stay on his favor. After some days the relationship between father and son began to deteriorate. Misery comes down in the life of Vijaypat Singhania. The accusation of the former owner is his son got him out of the elite house in Mumbai. Even he has been deported from Raymond’s office. After being impulsive Vijaypat was hand over the ownership of the company. However, now he is repentant for his decision. He is unable to get the place at his owned organization. After leaving his palace, he has to stay at a rental house now.
According to a report released recently by Credit Suisse, India’s position in the world is third in the conglomerate family ownership ranking. China and the United States are ahead of India. Day-to-day conflicts of power are increasing in the Indian conglomerates. The successors are desperate to take control of the organization. Analysts say, India’s need to create and follow global corporate standards now to handle conglomerates. As a result, it may be possible to avoid conflicts such as the Ambani family.
Vijaypat Singhania’s crisis started in 2015 after 37 percent of Raymond’s ownership was handed over to his son Mr. Gautam Singhania. Vijaypat said, in 2007 there was a family agreement to resolve another family conflict. According to the agreement, he was about to get an apartment at Malabar Hill, Mumbai which is oriented by Singhania family. In the contract, the settled price of the flat is much lower than the market price. There is a need to sell some of Raymond’s asset to buy this flat. But Gautam led the board of directors not to sell Raymond’s wealth. A fierce controversy arises between father and son.
At one stage of the debate, the Board of Directors exemplifies Vijaypat as the ‘Emeritus Chairman.’ Vijaypat also said, he was driven out of the office, and everything he had was taken away. Even his Padmavyuham medal has been seized.
He did not talk to his son for two years. According to a law of India in 2007, If a child does not fulfill the responsibilities of parents, parents will be able to get their bestowed property back. Recently he is thinking of taking shelter in this law. Vijaypat Singhania expressed sorrow and said, parents should not make a mistake to give their children all the money stored in their lifetime.
On the other hand, Gautam Singhania said that he only performed his duties. Last year, he told the Economic Times of India that he did exactly what he should. His responsibility as Chairman of Raymond and his responsibility as a son is completely different. A member of the board of directors (Vijaypat Singhania) tried to sell the property of the company using his badge. Gautam said, ‘I myself suffered. What’s wrong with me?’
The good news is Raymond Group did not have any influence on the dispute of the father-son. The company stated that their profits increased 50 percent in the second quarter of 2018. Recently they started a new factory in Ethiopia.