Raymond to Build ₹510 Crore Aerospace Hub in Andhra Pradesh, Expanding Global Aero-Engine Capabilities

• Raymond is building capabilities to participate in the next phase of global aerospace manufacturing.
• ₹510 crore aerospace facility under development in Andhra Pradesh

Raymond Limited, the flagship company of the Raymond Group is looking to deepen its participation in the Aerospace business, building on more than two decades of relationships with global OEMs and Tier-1 suppliers and a growing portfolio of high-precision aero-engine components and assemblies.

India is at an inflection point in aerospace manufacturing. As aircraft demand rises and global aerospace companies look to build more resilient and diversified sourcing networks, Indian manufacturers are finding a larger role within an industry traditionally dominated by established global supply bases.

The opportunity is visible in the increasing scale of global aerospace sourcing from India. Airbus currently sources more than US$1.5 billion annually from the country, while Boeing's annual sourcing from India has crossed US$1.25 billion. Yet India's share of the global aerospace supply chain remains relatively small, leaving considerable room for Indian engineering companies to take on more complex and higher-value work.

Mr. Gautam Maini, Managing Director – Engineering Business, Raymond Limited, said, “Aerospace rewards consistency over the long term. Customer relationships are built through qualification, performance and the ability to deliver the same level of quality every time. We are seeing customers increasingly look for partners who can handle not only individual components but also more integrated requirements. Our ambition is clear to build from India, meet global aerospace standards and become a more meaningful part of the supply chains that will shape the next generation of aviation.”

For Raymond engineering arm, this journey is already well underway. Through JK Maini Global Aerospace Limited (JKMGAL), the Company has developed more than 1,300 aero-engine parts, including over 350 components for the latest LEAP engine variants. The business has relationships spanning more than two decades with leading aerospace OEMs and Tier-1 suppliers and serves more than 25 global aerospace component manufacturing customers, several through relationships spanning more than two decades, and has expanded into new geographies including the UK, Belgium and Sweden. More than 75% of its operations are derived from complex aero-engine parts.

The business added more than 100 new SKUs during FY2025–26 and has an order book of over ₹2,350 crore for the next five years, providing visibility for continued expansion.

The Company's aerospace portfolio spans turbine vanes and stator blades, engine mounts and brackets, fuel-system components and complex machined engine parts. It is also expanding into assemblies and other higher-value applications, allowing Raymond to participate in a broader part of the manufacturing process rather than limiting its role to individual components.

With global aerospace manufacturers increasing their engagement with Indian suppliers, Raymond sees an opportunity to build on its existing customer relationships, expand its manufacturing footprint and take on a greater share of the work that goes into aircraft engines and systems around the world.

About Raymond Limited

With the inception in 1925, Raymond Group has been a pioneer and leader in fabric manufacturing and then forayed in other sectors such as engineering and Real Estate. After demerging its Lifestyle Business and Real Estate verticals into independent entities, Raymond Limited now has two core businesses within the Engineering vertical - Tools & Auto Components and Aerospace and Defence. Raymond’s engineering business commands a leadership position in manufacturing files and hand tools and has a significant presence in national and international markets. With the acquisition of Maini Precision Products Limited (MPP) Raymond’s engineering business has forayed into the sunrise sectors of Aerospace and Defence. EV components and caters to international as well as domestic markets.

To know more, visit us today at www.raymond.in

Raymond Group to Foray Into Sunrise Sector with Acquisition of MPPL Business

• Foray into sunrise sectors of Aerospace, Defense and EV components business
• Strategic acquisition of 59.25% stake in MPPL business for a consideration of ₹682 crores
• Acquisition being funded by mix of debt and internal accruals, Group to remain net cash positive post acquisition
• Raymond Group to consolidate its engineering business of JK Files, RPAL and MPPL under one entity building scale and size
• Gautam Maini, the founder of MPPL to lead the consolidated Engineering business
• Transaction will pave way for an eventual strategic value unlocking in Engineering business leading to significant shareholder value creation for Raymond shareholders

Raymond Group announces the acquisition of 59.25% stake in Maini Precision Products Limited (MPPL) for ₹682 crores funded by a mix of debt and internal accruals. The transaction will be subject to requisite regulatory approvals and is expected to be completed during the current fiscal. This acquisition is a strategic move to further strengthen Raymond’s existing engineering business with a complementing business that has presence in the sunrise sectors of Aerospace, Electric Vehicles (EV) and Defense. The consolidated business caters to the top Global OEMs and Tier 1 manufacturers across aerospace, defense, auto and industrial businesses.

With this acquisition, Raymond’s engineering business will emerge as a large-scale provider of Engineering, Automotive, EV, Aerospace & Defense components, distinctly positioned to target high-growth precision engineering products with a significant presence across international as well as domestic markets.

The acquisition will be concluded through Ring Plus Aqua Limited (RPAL), a subsidiary of JK Files and Engineering Ltd (JK Files). Post the acquisition, Raymond will consolidate JK Files, RPAL and MPPL business and will form a new subsidiary (“Newco”). Raymond Ltd. will hold 66.3% in the “Newco” that will focus on precision engineering products. The proforma consolidated revenue of “Newco” as of FY23 are ~ ₹1600 crore with an EBIDTA ~ ₹220 crore.

Commenting on the development, Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, “This acquisition will catapult the growth of our Engineering business and will open new vistas to us for our foray into rapidly growing segments like Aerospace, Defense, and Electric Vehicles (EV). Raymond Group has always believed in the ‘Make in India’ initiative and this acquisition will also provide an impetus to China Plus One strategy that has been benefitting us. These are growing sectors with visible momentum presenting us with ample opportunities to leverage. I am pleased to welcome Gautam Maini, founder of MPPL to the leadership team of our engineering business and we will significantly benefit from his domain expertise and his vast experience."

MPPL has a diversified business with 11 manufacturing facilities in India across two verticals i.e., aerospace, which comprises precision products manufactured for aerospace and defense, and automotive and industrial, that comprises precision products for clean internal combustion engines, fuel injections and transmissions, EV components, hydraulics and industrial as well as agriculture. MPPL has a 70% export contribution and generated around ₹750 crore in total revenue in FY23 with 13% EBITDA margin.

Commenting on the development, Gautam Maini said “I am delighted to lead Raymond's consolidated Engineering Business. This strategic merger represents the harmonious integration of our diverse strengths, thus creating a platform for synergistic collaboration. Leveraging our core competencies, this partnership will usher in myriad opportunities for rapid growth and expansion, affording us a competitive edge in both international and domestic markets.”

In its transformation journey, Raymond has been demonstrating affirmative actions in form of selling the FMCG business, demerging the Lifestyle Business and shaping the scalable Real Estate Business. With this acquisition aimed at growing the Engineering business significantly, Raymond Group has reiterated its intent that it will continue to have three distinct vectors of growth that will create shareholder value for each of the businesses. With strong free cash generation and no major capex requirement, Raymond group will remain net cash positive post the transaction.

About Raymond Limited

Raymond is India’s largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabric and garmenting. Over the years, Raymond has been synonymous with quality, innovation and market leadership. It has some of the leading brands within its portfolio – ‘Raymond Ready to Wear’, ‘Park Avenue’, ‘ColorPlus’, ‘Parx’, ‘Raymond Made to Measure’ and ‘Ethnix by Raymond’ amongst others. Raymond has one of the largest exclusive retail networks in the country with about 1,450 stores in more than 600 towns. The group has a presence in the engineering space engaged in precision engineered products with an expansive presence in national as well as international markets. Raymond forayed into realty sector through the launch of its maiden project Ten X Habitat spread across 14 acres housing ~3,100 residential units, followed by launch of a premium residential project – The Address by GS housing ~550 residential units, Ten X Era with ~ 900 residential units. Recently, Raymond launched a new project The Address by GS 2.0 with ~ 775 units and The Invictus by GS with ~ 102 residential units.

To know more, visit us today at www.raymond.in