Raymond Group has acquired 59.2% stake in Maini Precision Products (MPPL) for INR 682 crore through a combination of debt and internal accruals. The transaction will be subject to regulatory approvals and is expected to be completed during the current fiscal.
This acquisition is a strategic move to strengthen Raymond’s existing engineering business. The consolidated business will cater to the top global OEMs and tier 1 manufacturers across aerospace, defence, auto and industrial businesses.
The acquisition will be concluded through Ring Plus Aqua (RPAL), a subsidiary of JK Files and Engineering (JK Files). Post the acquisition, Raymond will consolidate JK Files, RPAL and MPPL business and will form a new subsidiary Raymond will hold 66.3% in the newco that will focus on precision engineering products. The proforma consolidated revenue of the newco as of FY23 are INR 1,600 crore with an EBITDA of INR 220 crore.
Gautam Maini, the founder of MPPL, will lead the consolidated engineering business.
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, defence, and EV. Raymond Group has always believed in the ‘Make in India’ initiative and this acquisition will also provide an impetus to the China Plus One strategy that has been benefiting us.”
