The deal will strengthen the portfolio of the Godrej Group FMCG arm GCPL and foray into sexual wellness categories.
An announcement of the deal is expected from both companies in the second half of Thursday.
E-mail queries send to both the companies remained unanswered by the time of filing of the story.
Both the brands — Park Avenue and KamaSutra — are under Raymond Consumer Care, which is a step-down unit of the Singhania-family owned Raymond, known for its shirting and lifestyle business.
Raymond was trying to sell this consumer care business for some years.
Earlier, it was in discussions with Good Glamm Group, a D2C beauty and personal care brand. However, it had not materialised, the industry sources said.
Raymond has two fundamental businesses — lifestyle and real estate. Its revenue from FY22 was Rs 4,260.66 crore.
Shares of Raymond were trading 4.94 per cent up at Rs 1,691.40 apiece on the BSE.
GCPL is expanding its play in the consumer. Earlier, it had acquired Bblunt.
Shares of GCPL were trading at 2.77 per cent down at Rs 949.10 per piece on the BSE.