Raymond Units Makes Big Changes To Pave Way For Defence And Aerospace Entry
The boards of several of Raymond’s subsidiaries have approved the demerger of its engineering business, facilitating the company’s expansion into nascent sectors such as aerospace, defence and electric vehicle components.
What Happened: The rationale behind this move is to consolidate the engineering businesses of Raymond and recently acquired
The demerger will also facilitate the segregation of the aerospace and defense business.
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The companies involved in this composite agreement include JK Files & Engineering (JKFEL), JKFEL Tools And Technologies Limited (JKTTL), Ring Plus Aqua Limited (RPAL), MPPL, Ray Global Consumer Enterprise Limited (RGCEL) and other subsidiaries.
The composite scheme encompasses the demerger of the engineering business conducted by JKFEL and its subsidiaries RPAL, MPPL and JK Talabot into JKTTL. It also involves the merger of RPAL and MPPL into JKTTL and the subsequent demerger of the aerospace and defense business of JKTTL into RGCEL.
Acquisition Fuelled Sky-High Plans: Raymond’s acquisition of MPPL, completed in the previous financial quarter, paved the way for its entry into the aerospace, defense and electrical vehicle components business.
Following the consolidation, Raymond aims to establish two units: one focusing on aerospace and defense, and the other catering to auto components, including EV and engineering consumables. Raymond will hold a stake of around 66.3% in JKTTL and RGCEL.
Raymond also posted an 18% increase in net profit at ₹229.21 crore, up 18% from a year ago. The company’s revenue from operations for the quarter came in at ₹2,608.50 crore, up 21%.
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