Raymond Ltd plans to invest around ₹930 crore over the next five years across its core business — aerospace and precision engineering businesses to capitalise on rising global demand and expand manufacturing capabilities.
The investments will be routed through its subsidiaries — JK Maini Global Aerospace Ltd and JK Maini Precision Technology Ltd — with new manufacturing facilities coming up in Andhra Pradesh near Bengaluru International Airport.
Raymond will invest around ₹500 crore in the aerospace business and ₹430 crore in the precision technology and auto components vertical. Both facilities are expected to commence commercial operations by late 2027.
Aerospace expansion
Management said the aerospace project is being developed on a 45-acre greenfield site in Andhra Pradesh and is expected to contribute an additional 25% revenue growth.
The aerospace business currently has an order book of around ₹2,350 crore spread over five years.
Raymond Engineering Business Managing Director Gautam Maini said during the analysts call that the company has built capabilities across aero engines, landing gears, hydraulics, fuel systems, accumulators and auxiliary engines instead of restricting itself to a single aerospace segment.
He said the integration of advanced multi-axis machining systems is improving turnaround times and enabling execution of complex, high-value aerospace projects across engine, landing gear and structural segments.
Focus on hybrid mobility
The company said it continues to expand across international geographies and industrial sectors, supported by the China Plus One strategy, operational efficiencies and integration synergies.
Management indicated that global trade pressures arising from U.S. tariffs have created logistical challenges and temporary rescheduling across the industry.
The precision engineering business manufactures complex assemblies, transmission gearboxes and critical components used in hybrid transmission systems exported globally, particularly to Europe.
The demand for hybrid vehicles has remained significantly stronger than electric vehicles over the past two years, helping offset weakness in certain global markets, Maini said.
The hybrid vehicle segment is expected to remain strong, while growth in the EV segment continues at a slower pace as several European governments have postponed their EV transition timelines by four to five years, he added.
Debt-free balance sheet
Raymond remains debt-free company with a net cash surplus of ₹68 crore as of March 2026.
The company expects to fund the planned capital expenditure through internal accruals and existing cash reserves of over ₹1,000 crore.
Raymond Chairman & Managing Director Gautam Hari Singhania said the company remains focused on scaling high-margin businesses and pursuing long-term value creation as its subsidiaries continue to deliver strong operational performance.