### **Company Overview** Raymond Limited, established in 1925, is undergoing a comprehensive strategic transformation from its legacy as a leader in fabric manufacturing into a diversified conglomerate focused on **Engineering**, **Real Estate**, and **Lifestyle**. Following a series of demergers and acquisitions, the company is repositioning itself as a high-growth engineering and real estate powerhouse, while creating independent, focused, and net debt-free listed entities to unlock long-term shareholder value. As of late 2025, Raymond Limited has completed the demerger of its **Lifestyle** and **Real Estate** businesses, allowing the core entity to focus on two high-potential **engineering verticals**: 1. **Precision Technology & Auto Components** 2. **Aerospace & Defence** This strategic refocusing aligns with India’s "Make in India" initiative and global "China+1" supply chain diversification trends. --- ### **Engineering Business: Core Growth Driver** Raymond’s engineering division has emerged as the cornerstone of its future growth, driven by the **acquisition of Maini Precision Products Limited (MPPL)** in FY2024-25. This strategic move enabled entry into high-growth, capital-intensive sectors: - **Aerospace & Defence**: The largest revenue-generating segment in engineering, accounting for **>75% of aerospace revenue from aero engine components**, including over **350 parts for the LEAP engine**. - **Automotive & EV Components**: A key supplier to the **top 15 global OEMs**, producing over **2,000 auto components** and serving more than **100 global customers**. - **Engineering Consumables**: Dominant in **steel files, ring gears, flex plates, and hand tools**. #### **Key Subsidiaries & Operations** - **JK Maini Global Aerospace Limited (JKMGAL)**: - Operates **17 manufacturing facilities** across 4 locations, supported by **12 third-party logistics (3PL) warehouses**. - Runs **1,500+ machines**, producing **4,000+ SKUs**, and shipping **500+ 20-ft containers annually**. - Serves **100+ customers across 25 countries**, with FY25 revenue exceeding **₹2,100 crore**. - **JK Maini Precision Technology Limited (JKMPTL)**: - A key export engine with **over 60% of revenue from international markets**. - Operates across **eight industry verticals** with over **seven decades of experience**. #### **Strategic Restructuring in Engineering** Raymond is splitting its engineering business into **two independent subsidiaries**: 1. **Aerospace & Defence**: Focused on long-cycle, high-margin contracts with global OEMs. 2. **Auto Components & Engineering Consumables**: Concentrated on automotive, EV, and industrial tooling markets. This structure enables focused leadership, investment strategies, and operational agility within each high-growth sector. --- ### **Aerospace & Defence: Strategic Moats and Capabilities** - **Global Leadership**: Supplies **mission-critical components** to the **top 3 global aircraft engine manufacturers** (collectively holding **88% market share**). - **Revenue Mix**: - **70%+ from engine components**, 16% from structural components. - **83% export share** in aerospace revenue. - **Long-Term Contracts**: Contracts span **5–10 years**, de-risking revenue and supporting OEM production ramp-ups through **2035**. - **Recent Win**: Secured a **long-term supply agreement with Pratt & Whitney**. - **Scale**: Develops **1,200+ precision aerospace parts**, with **75% in engine applications**. - **Technology & Innovation**: - Dedicated **20 machines and 57 engineers** for **New Product Development (NPD)**. - **24/6 operations** for rapid turnaround. - Uses **5-axis machining, EDM, vacuum brazing**, and **cleanroom manufacturing**. - **Capacity Expansion**: A new **aerospace manufacturing facility** is planned in **Andhra Pradesh** (execution timeline: 18–24 months). Management expects the **aerospace business to double in size over 3–4 years**, achieving **sustainable EBITDA margins of 25%**. --- ### **Automotive & EV Components** - **Market Dominance**: - No. 1 in **ring gears** in India (~55% PV, ~45% CV). - Sole domestic manufacturer of **flex plates** (~25% market share). - **Product Portfolio**: Ring gears, flexplates, water pump bearings, input shafts, oil sleeves for **ICE, hybrid, and EV platforms**. - **Expansion**: Engaged in **co-development programs** with OEMs for EV and hybrid systems, particularly in **Europe and the U.S.** - **Merged Auto Business Goals**: - **Doubled revenue and margins** in 4 years. - Expected to grow at **low- to mid-single-digit rates**, depending on macroeconomic conditions. --- ### **Tools & Hardware (Engineering Consumables)** - **Flagship Brand: JK Super Drive / JKFEL** - **>60% market share in Indian steel files**. - **Global leader in installed capacity**, with **~25% global market share**. - **Products**: Steel files, drills, hand tools, power tools, and precision tools. - **Markets**: Supplies both **B2B and B2C** customers. - **Distribution**: - **Pan-India network** of **150,000+ points of sale** across **600+ towns**. - **Exports to >65 countries**, with **50% to Europe** and **35% to the U.S.** - **Innovation**: Developing proprietary technologies for **jewelry files, precision drills**, and **application-specific tools**. --- ### **Real Estate: Raymond Realty – A Fast-Rising Pure Play** - **Demerger Status**: **Effective April 30, 2025**. - **Listing**: Scheduled for **July 2025**, making it the **fastest real estate company in India to list within six years of inception**. - **Business Model**: Capital-light **Joint Development Agreement (JDA)** model, avoiding large land acquisitions. - **Portfolio**: - **₹25,000 crore** potential from **100-acre Thane land parcel**. - **₹14,000 crore** from JDA-led projects in **Bandra, Mahim, Wadala**, etc. - **Total GDV: ~₹40,000 crore**. - **Projects**: - **Ten X Habitat, Ten X Era, The Address by GS, Invictus by GS, Park Avenue Retail**. - Over **900 units delivered**, all **ahead of RERA timelines** (by 2 years). - **Market Position**: Among the **top 5 developers in MMR** with **33% market share in Thane**. - **Growth Strategy**: - Aggressively adding **new JDAs** (e.g., **₹6,800 crore additions in Mahim and Wadala**). - Targeting **20–25% YoY growth in bookings** via digital marketing, NRI outreach, and loyalty programs. - **Financial Strength**: **Net debt-free**, funded through **milestone-based collections**, allowing for **self-sustained execution**. --- ### **Strategic Rationale & Future Outlook** - **Portfolio Rationalization**: - **Lifestyle Business (Raymond Lifestyle/Raymond Consumer Care)**: Demerged to focus on **fabric, apparel, and FMCG**, now a separate listed entity. - **Denim Business**: Divested or restructured; now a JV. - **Engineering as the Engine of Growth**: - Transitioning from **component manufacturer to full-stack engineering partner**. - Advancing up the value chain with **assemblies, co-engineering, and modular manufacturing**. - Investing in **IIoT, AI, and digital twins** for predictive maintenance and quality control. - **Globalization**: - Expanding **local warehousing and machining partnerships** in **North America and Europe**. - Targeting **medical machining** as a new high-precision adjacents. - **Localization Strategy**: - Long-term push to **indigenize high-end raw materials** like **Inconel and titanium**, currently imported. --- ### **Financial and Operational Highlights (2024–25)** - **Engineering Combined Revenue**: **₹1,824 crore** (post MPPL integration), with **EBITDA margin of 13%**. - **Aerospace Division**: ₹295 crore revenue, **28% RoCE**, **25% EBITDA margin**. - **Real Estate**: - Revenue: **₹2,313 crore** (45% YoY growth). - Pre-sales: **₹2,314 crore**. - Projects selling at **70–97%** across segments. - **Exports**: Over **50% of engineering revenue**; over **60% of total engineering sales** globally. - **Retail Network (Legacy Lifestyle)**: Over **1,500 stores**, with aggressive expansion via **EBO and franchise models**. --- ### **Leadership and Experience** - **Three Senior Executives** with **>30 years of expertise each** in precision manufacturing. - **Gautam Maini** (founder of MPPL) leading the integrated engineering business, ensuring **technical continuity and strategic vision**. ---