Fabric and fashion retailer Raymond Group is soon going to enter aerospace, defense and EV component business. The company is acquiring 59.25% stake in auto and aerospace company Maini Precision Products Limited (MPPL) for Rs 682 crore.
The company said this acquisition will further strengthen Raymond’s existing engineering business. The company currently has a presence in the emerging aerospace, electric vehicles (EV) and defense sectors.
Raymond will create a new subsidiary by merging three companies
|Textiles, Engineering, Real estate, Aerospace and defense
|Mumbai, Maharashtra, India
Raymond has been re-structuring its business in recent years and entering new businesses. At the beginning of the year, the company sold its consumer care business to Godrej. Earlier, Raymond had separated his lifestyle business. The company has also entered the real estate business.
Raymond Limited will hold 66.3% stake in the new company, which will focus on precision engineering products. Newco’s pro-forma consolidated revenue by FY 2023 is Rs 1600 crore and EBIDTA is Rs 220 crore. MPPL founder Gautam Maini will lead the consolidated engineering business.
Raymond is entering in new business
MPPL has a large business in India with 11 manufacturing facilities across two sectors. The first being Aerospace, which includes manufactured precision products for Aerospace and Defence. The second is the Automotive & Industrial vertical, which includes clean internal combustion engines, fuel injection & transmissions, EV components, hydraulics and precision products for industrial as well as agriculture.
How many manufacturing facilities does MPPL have?
The acquisition will be completed through Ring Plus Aqua Limited (RPAL), a subsidiary of JK Files & Engineering. Post the acquisition, Raymond-JK Files, RPAL and MPPL businesses will be merged into a new subsidiary.