Raymond To Buy Majority Stake In Maini Precision For $82 Mln

Raymond Group will acquire a 59.25% stake in Maini Precision Products Ltd. for 682 crore rupees ($82 million) in cash to foray into the aerospace, defense and electric vehicle components business.

“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,” Raymond Chairman and Managing Director Gautam Hari Singhania said in a statement.

The diversified Indian company will conclude the acquisition through its step-down unit Ring Plus Aqua Ltd., a subsidiary of JK Files and Engineering Ltd. The acquisition will be funded via debt and internal accruals.

The transaction, which will be subject to requisite regulatory approvals, is likely to be completed by March 2024.

Post the acquisition, Raymond will consolidate its unit JK Files, Ring Plus Aqua and Maini Precision business and form a new subsidiary. Raymond will hold a 66.3% stake in the new subsidiary that will focus on precision engineering products.

Maini Precision has a diversified business with 11 manufacturing facilities in India across two verticals - aerospace and automotive & industrial.

The aerospace business comprises precision products manufactured for aerospace and defense, while automotive & industrial segment comprises precision products for clean internal combustion engines, fuel injections and transmissions, EV components, hydraulics and industrial as well as agriculture.

Maini Precision’s total revenue stood at around 750 crore rupees in FY23 with 13% EBITDA margin.

Raymond is a diversified group with a significant presence in the textile & apparel sector and diverse segments such as consumer care, realty, and engineering in national and international markets, according to its website.

(Note: $1 = 83.2542 Indian rupees)

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