Raymond to now make aerospace, defence and EV parts after a ₹682 cr acquisition

The acquisition will be concluded through Ring Plus Aqua Limited (RPAL), a subsidiary of JK Files and Engineering Ltd (JK Files). Following the acquisition, Raymond will consolidate its engineering business of JK Files, RPAL and MPPL under one entity building scale and size and will form a new subsidiary 'Newco'.

Gautam Maini, founder of MPPL, will lead the consolidated engineering business. "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," Maini said.

Raymond will hold a 66.3% in 'Newco' that will focus on precision engineering products. The proforma consolidated revenue of 'Newco' as of FY23 are ₹1600 crore with an EBIDTA of ₹220 crore.

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

"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, EV and Defense. The consolidated business caters to the top Global OEMs and Tier 1 manufacturers across aerospace, defense, auto and industrial businesses," it said.

Gautam Hari Singhania, Chairman and Managing Director of Raymond, 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 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."