At a meeting of the board of directors of Raymond Ltd held in Mumbai on Wednesday, the 62-year-old Vijyapat Singhania stepped down as the managing director of the company paving the way for his son. The board has formally appointed 32-year-old Gautam Sighania as the new managing director. However, Vijayapat Singhania will continue to remain executive chairman of the group.

"I have had a wondeful innings on the eve of the millenium. We need new thinking and ideas and young blood to enable the company to meet the challenges of the next century. I have full faith in Gautam's innate abilities and years of experience in all facets of businesses," said Vijayapat Singhania commenting on his son's elevation to the new post.

Gautam's new innings will be fraught with difficulties as the group ispassing through an elaborate restructuring process. The onus of selling the company's steel and cement businesses lies squarely on the shoulders of the young Singhania who has been actively involved in the affairs of Raymond for many years as a director and more recently as joint managing director.

Raymond could not clinch a deal with German steel giant Thyssen, which, at one point, was keen on taking over the steel division. However, last year saw the company divesting its entire stake in its Kenyan subsidiary in favour of the local partner.

Analysts say Raymond is likely to report losses in the first quarter of the current fiscal due to a shrinkage in volumes in its core woollen textiles business. The fact that the company could not sell its cement and steel divisons immediately will also be reflected in the results, they add. Gautam's reputation as a man of novel initiatives would lead to a complete turnaround, company insiders said. He was instrumental in the launch of highly successful Kamasutracondoms and the setting up of green-field denim project.

His other initiatives include the Parx range of casual wear and several new ideas in the marketing of the company's products and the adoption of information technology, said a press release.