Raymond Lifestyle appoints Sunil Kataria as Managing Director

Gautam Hari Singhania has been appointed as the executive chairman of Raymond Lifestyle, following shareholder approval through a Postal Ballot on December 4, 2024. 

According to the company’s filing with SEBI, 86.85% of votes supported the resolution, while 13.15% opposed it. This marks a significant milestone for Raymond Lifestyle as it gears up for its centenary year, focusing on driving growth and enhancing operational efficiency.

Sunil Kataria has been named the managing director of the company. He previously served as the chief executive officer of Raymond Lifestyle (India & International) since March 2022. Prior to this role, he was the CEO of India and South Asia at Godrej Consumer Products (GCPL) from 2015, where he played a key role in scaling up and transforming the business. Kataria has also held leadership positions in retail and telecom, overseeing large and complex operations.

He began his career at Marico, spending over a decade in sales and marketing. With extensive experience across the FMCG and consumer services sectors, Kataria brings expertise in marketing, sales, business planning, strategy, and team leadership.

Singhania’s appointment is a key part of Raymond Lifestyle’s strategy to capitalise on his vast industry experience and leadership to drive future growth. The resolution formalises his role for a five-year term, aimed at improving operational efficiency and positioning the company for continued success.

Despite shareholder approval, Singhania’s appointment has faced criticism from corporate governance watchdogs, with concerns raised about transparency and reputational risks. The proposal encountered significant opposition from governance advisory firms Empowerment Services (SES) and Institutional Investor Advisory Services India (IiAS), according to media reports. These firms had urged shareholders to reject the resolution, citing governance concerns and potential reputational risks surrounding the decision.

SES, a corporate governance advisory firm, raised several concerns about Singhania’s appointment, noting that his role was publicly announced before receiving formal board approval, which raised questions about the company's decision-making process. The firm also questioned Singhania’s ability to manage full-time executive roles at both Raymond and Raymond Lifestyle, arguing that no individual should hold multiple full-time positions unless the businesses are closely aligned.

IiAS, another prominent advisory firm, criticised Singhania’s proposed pay structure for its lack of transparency. The absence of a cap on his remuneration and performance-linked incentives, along with the lack of malus or clawback provisions for underperformance, led IiAS to describe the compensation package as "open-ended" and lacking essential safeguards, according to media reports.

Singhania has been leading Raymond as chairman and managing director since September 1990. A commerce graduate from the University of Mumbai, Singhania brings over three decades of expertise in industry, business, and corporate management. He has played a key role in policy planning, vision and strategy development, and overseeing the long-term growth of the Group alongside the Board of Directors.