Andhra Pradesh government announced on Wednesday that it formally approved two significant investments from the Raymond Group, collectively valued at ₹940 crore, focusing on the advanced manufacturing of aerospace and automotive components.
These approvals, sanctioned under the state’s Industrial Development Policy 4.0, are projected to create 5,500 direct jobs in the Sri Satyasai district.
“The government has cleared two landmark investments from the Raymond Group…under the Industrial Development Policy 4.0 (2024–29),” an official statement said.
The statement highlighted the strategic importance of the deal, noting that the aerospace investment represents the state’s inaugural project under its new aerospace policy.
Furthermore, a special package worth ₹700 crore has been sanctioned to expedite the project’s deployment.
Breakdown of Manufacturing Facilities
Aerospace Components: Raymond’s subsidiary, JK Maini Global Aerospace Limited, is set to establish an advanced aerospace manufacturing facility with an investment of ₹510 crore. This facility is anticipated to generate 1,400 direct jobs and will focus on producing high-precision components for global original equipment manufacturers (OEMs) and Tier-1 suppliers, thereby integrating Andhra Pradesh into the global aerospace supply chain.
Automotive Technology: Similarly, JK Maini Precision Technology Ltd, another Raymond subsidiary, will establish an automotive component manufacturing unit at Gudipalli. This project involves an investment of ₹430 crore and is expected to create the largest number of jobs, accounting for 4,096 new roles. The plant will supply leading automobile companies both domestically and internationally, significantly boosting regional employment and skill development.
Both manufacturing facilities are currently scheduled to commence commercial production by May 2027.
Raymond Realty to sign up project only if profit margin is 20%
In June, Raymond Realty announced it would not commit to any new development projects unless they offered a minimum profit margin of 20%. The company plans to launch new ventures with a gross development value (GDV) ranging from ₹6,000 crore to ₹10,000 crore.
Raymond Group Chairman and Managing Director Gautam Singhania stated that the realty arm is specifically targeting a topline growth of 15% and an operating profit margin of 20%.
Singhania stressed the paramount importance of financial discipline within the company. He acknowledged that pricing on recent property development deals had become excessively “heated up”, cautioning that some proposals were so inflated “that even a gambler will not place any bets on them.” He made the company’s approach explicit: “I will do a deal only if it delivers on financial returns.”
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