Raymond Limited, a leading diversified conglomerate, has announced the approval for the consolidation of its engineering business under a single entity, marking a strategic move to enhance operational efficiency and pursue growth opportunities in emerging sectors. The decision was approved by the respective boards of Raymond’s various businesses and was disclosed in a filing to the stock exchange on Friday.
As part of the consolidation, Raymond will segregate its aerospace and defence business into a separate entity, aiming to enable strategic focus and capitalize on new opportunities in sunrise sectors. The move aligns with Raymond’s broader vision to diversify its portfolio and drive profitable growth in dynamic markets.
Explaining the rationale behind the composite agreement, Raymond stated that the consolidation will “build scale and drive profitable growth by venturing into sunrise sectors such as aerospace, defence, and electric vehicle component space, while also facilitating the segregation of aerospace and defence business.” The entities involved in the proposed composite scheme include JK Files & Engineering, Ring Plus Aqua, Maini Precision Products, JKFEL Tools And Technologies, and Ray Global Consumer Enterprise.
The composite scheme encompasses several key components, including the demerger of engineering business conducted by JKFEL and its subsidiaries RPAL, MPPL, and JK Talabot into JKTTL. It also involves the merger of RPAL & MPPL into JKTTL, and the subsequent demerger of aerospace and defence business of JKTTL into RGCEL.
Following the completion of the scheme, RPAL and MPPL will cease to exist, and the shareholding in JKTTL and RGCEL will change from 100% to 66.3% as subsidiaries of Raymond Limited. Notably, the shares issued by JKTTL and RGCEL will not be listed on any stock exchanges.
Importantly, there will be no cash consideration issued in the demerger process. The share exchange ratios under the proposed scheme are based on independent valuation reports obtained from registered valuers.
The consolidation of engineering business underscores Raymond’s commitment to strategic transformation and sustainable value creation. The company remains focused on leveraging its strengths, driving innovation, and delivering superior value to its stakeholders.