Press Release Summary: Raymond Limited Accelerates Andhra Pradesh Expansion

Expansion Strategy

Raymond Limited, through its subsidiary companies, is accelerating its capacity expansion in Andhra Pradesh to support strong business momentum and growing customer requirements. The company is implementing a two-stage capacity expansion strategy:

Near-Term Brownfield Expansion

  • The Company's subsidiary is setting up an additional brownfield facility in proximity to its existing Mega manufacturing facility in Andhra Pradesh.
  • This facility is being developed as an interim capacity augmentation initiative.
  • It is expected to support incremental customer requirements and volumes during the current financial year (FY2026).
  • This decision reflects the Company's focus on responding swiftly to customer demand while maintaining capital and execution discipline.

Long-Term Greenfield Project

  • Raymond's planned greenfield project in Andhra Pradesh is progressing as scheduled.
  • The greenfield facility is envisaged as a larger, long-term manufacturing platform.
  • It will significantly enhance the Company's infrastructure and capacity to support its medium- to long-term growth plans.

Management Commentary

Sanjeev Sharma, Joint Managing Director & CEO, JKMPTL- Raymond Group stated: "The accelerated expansion in Andhra Pradesh reflects the strong momentum we are seeing in the business. While our greenfield project remains the foundation for our longer-term growth, the additional brownfield capacity will allow us to respond faster to current customer requirements. This approach enables us to capture near-term opportunities while continuing to build a scalable platform for sustained growth."

Strategic Rationale

The combination of near-term brownfield expansion and the planned greenfield facility provides Raymond with:

  • Near-term capacity augmentation to address current customer requirements and incremental volumes
  • Long-term scalable infrastructure to support future growth and expanding customer opportunities

This expansion reinforces Raymond Limited's strategy of building a scalable, capital-efficient manufacturing platform, while progressively strengthening its capabilities to address opportunities across domestic and global markets.

Business Context

After demerging its Lifestyle Business and Real Estate verticals into independent entities, Raymond Limited now has two core businesses within the Engineering vertical:

1. Tools & Auto Components - commands a leadership position in manufacturing files and hand tools with significant presence in national and international markets

2. Aerospace and Defence - forayed into these sunrise sectors through the acquisition of Maini Precision Products Limited (MPPL), catering to international and domestic markets, including EV components

Corporate Structure

Raymond Group operates through three listed entities:

  • Raymond Limited - focused on Engineering, Aerospace Defence and Automotive businesses
  • Raymond Realty Limited - real estate developer with estimated gross development value of approximately ₹52,000 crores
  • Raymond Lifestyle Limited - integrated player in branded apparel, premium fabrics and garmenting with 1,600+ stores across 600+ cities