Raymond Limited is expanding its engineering operations with new manufacturing capacity in Andhra Pradesh, supporting aerospace, defence and automotive customers.
The Raymond aerospace expansion is gathering pace as the company advances an approximately ₹1,000 crore investment programme covering aerospace and automotive manufacturing in Andhra Pradesh.
Known widely for its association with clothing and fabrics, the Raymond Group also has an established engineering business. That business is now the focus of Raymond Limited following the separation of its lifestyle and real estate operations into independently listed companies.
The Andhra Pradesh programme combines a large new manufacturing facility with an interim expansion intended to meet customer requirements sooner. Management has described the investment as a commitment spread over approximately five years.
For readers following Raymond’s transformation, the development shows how the company is building on its existing manufacturing capabilities to pursue more complex engineering work.
What the Raymond Aerospace Expansion Includes
Raymond’s latest financial disclosures identify two major investment components in Andhra Pradesh.
| Business area | Planned investment | Operating company |
|---|---|---|
| Aerospace and defence | Approximately ₹510 crore | JK Maini Global Aerospace Limited |
| Precision technology and automotive components | Approximately ₹430 crore | JK Maini Precision Technology Limited |
| Combined disclosed project allocations | Approximately ₹940 crore | Raymond Limited’s engineering subsidiaries |
These allocations total approximately ₹940 crore. Separately, management has described the broader aerospace and automotive investment commitment as approximately ₹1,000 crore over five years.
The distinction helps explain the headline figure. It represents a planned manufacturing investment programme covering multiple engineering activities, with expenditure taking place in stages.
The company’s aerospace operations manufacture precision components for demanding applications, while its precision technology business serves automotive and other industrial customers.
How Raymond Built Its Engineering Business
Raymond’s move into aerospace developed through its engineering operations and the acquisition of Maini Precision Products.
The acquisition brought capabilities in precision manufacturing, aerospace components and automotive engineering. These activities now sit within the company’s two principal engineering businesses.
Following the group’s restructuring, the three listed companies have distinct areas of focus:
- Raymond Limited: Engineering, aerospace, defence and automotive activities.
- Raymond Lifestyle Limited: Branded apparel, fabrics and garment manufacturing.
- Raymond Realty Limited: Real estate development.
This structure matters when assessing the Andhra Pradesh investment. The expansion belongs to Raymond Limited’s engineering businesses, which already have manufacturing operations and customers.
Why Raymond Is Adding an Interim Facility
On 12 October 2026, Raymond announced that its subsidiaries were accelerating capacity expansion in Andhra Pradesh.
The company is developing an additional brownfield facility near the planned larger manufacturing site. A brownfield expansion uses existing premises or infrastructure, allowing capacity to be added before a completely new factory is ready.
Raymond said the interim facility would help meet additional customer requirements during the current financial year.
The larger greenfield project remains the foundation of its longer-term expansion. Developing both facilities allows the company to address immediate demand while preparing for future production volumes.
Its October investor presentation reported that more than 30 machines had been commissioned at the interim facility, with trial runs underway and a targeted production start during the October–December 2026 quarter.
When Will the New Andhra Pradesh Factory Start Production?
Raymond Aerospace October 2026 investor presentation placed the start of commercial production at the larger greenfield facility in late 2027.
During the company’s 28 October 2026 earnings call, management specified December 2027 as the target.
The interim operation has a different purpose. Management explained that its initial production focus would primarily be automotive and precision technology, alongside training for workers across both engineering segments.
Existing Bengaluru operations would continue supporting aerospace production while the permanent Andhra Pradesh facility is developed and qualified.
That distinction is important because aerospace customers require approval of manufacturing facilities and processes. Installing machinery is one stage; establishing a production operation that meets customer requirements involves further work.
Raymond’s Growing Role in Defence Manufacturing
Raymond Aerospace is also developing capabilities in aircraft structures.
In a disclosure dated 23 September 2026, the company said subsidiary JK Maini Global Aerospace had succeeded in a tender process conducted by a leading Indian aerospace and defence manufacturer.
The work concerns the assembly of wing structures and centre fuselage structures for an indigenous fighter aircraft programme.
Raymond did not identify the customer or disclose a contract value in that announcement. It said the programme was expected to use the customer’s existing infrastructure.
This initiative expands the company’s role from precision parts into more complex aircraft assemblies. It is a separate development from the construction of the Andhra Pradesh manufacturing facility.
Existing Aerospace Revenue Shows the Business Is Already Operating
Raymond’s financial results provide a useful measure of the business behind the investment plans.
For the quarter ended 30 September 2026, its aerospace and defence segment reported revenue of ₹139 crore, compared with ₹81 crore a year earlier—an increase of 72%.
The precision technology and automotive components segment generated ₹471 crore, representing 15% annual growth.
These figures relate to existing business operations. The planned Andhra Pradesh facilities are intended to support additional capacity as customer programmes develop.
The practical test will be whether investment in equipment, facilities and people translates into dependable production and sustained customer demand.
A Proposed Name Change Reflects the Engineering Focus
Raymond’s corporate identity may also change to reflect its business structure.
On 24 October 2026, the board approved a proposal to rename Raymond Limited as Raymond Aerospace, Defence & Engineering Limited.
The proposal remains subject to shareholder approval and the required regulatory and statutory clearances.
The proposed name brings the company’s engineering activities to the forefront and makes its operating focus more explicit.
What to Watch as the Expansion Progresses
The next milestones include production at the interim facility, construction progress at the greenfield site, customer approvals and the gradual increase in manufacturing output.
For the Raymond aerospace expansion, completing the factory is one part of the task. The company must also demonstrate consistent quality, meet delivery schedules and develop the workforce needed for complex manufacturing.
Its latest disclosures set out a phased investment programme, with the larger Andhra Pradesh facility targeting commercial production in late 2027.
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