New Delhi: Raymond Group’s acquisition pf Maini Precision Products Limited will further strengthen Raymond’s existing engineering business with a complementing business that has presence in the sunrise sectors of Aerospace, Electric Vehicles (EV) and Defence. The company on November 3 said it is acquiring 59.25 percent stake in auto and aerospace player Maini Precision Products Limited (MPPL) for Rs 682 crore funded by a mix of debt and internal accruals.
Ring Plus Aqua Limited (RPAL), a subsidiary of JK Files and Engineering will conclude the acquisition. Post the acquisition, Raymond will consolidate JK Files, RPAL and MPPL business and will form a new subsidiary. Raymond Ltd. will hold 66.3 percent in the new company that will focus on precision engineering products.
According to the company, Gautam Maini, the founder of MPPL will lead the consolidated Engineering business. The consolidated business caters to the top Global OEMs and Tier 1 manufacturers across aerospace, defence, auto and industrial businesses.
Gautam Hari Singhania, Chairman & Managing Director, 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, EV…These are growing sectors with visible momentum presenting us with ample opportunities to leverage.”
With 11 manufacturing facilities in India across two verticals – MPPL has a diversified business. Under the aerospace vertical, precision products are manufactured for aerospace and defence. The precision products for clean internal combustion engines, fuel injections and transmissions, EV components, hydraulics and industrial as well as agriculture are manufactured under the automotive and industrial vertical.
“I am delighted to lead Raymond’s consolidated engineering business. 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,” Gautam Maini said.
MPPL has a 70 percent export contribution and generated around Rs 750 crore in total revenue in FY23. Raymond has been restructuring its business in recent years and foraying into new ones.
