Raymond Group To Acquire 59.25% Stake In Maini Precision Products

Raymond Group on Friday announced the acquisition of 59.25 percent stake in Maini Precision Products Limited (MPPL) for Rs 682 crores funded by a mix of debt and internal accruals, the company announced through an exchange filing.

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.

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 percent in the Newco that will focus on precision engineering products. The proforma consolidated revenue of Newco as of FY23 are approximately Rs 1600 crore with an EBIDTA approximately Rs 220 crore.

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."

About MPPL

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  Rs 750 crore in total revenue in FY23 with 13% EBITDA margin.

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.”