Pacts with Safran, P&W to enable Raymond to move up value chain of engine component manufacturing: Gautam Maini, ET Infra
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The engineering business of Raymond Ltd is aiming for a 15 per cent year-on-year growth in the topline for 2025-26, as the division focuses on going up the value chain and expands its precision engineering products business comprising auto and aerospace components , said Gautam Maini , Chief Executive Officer, Engineering Business, Raymond Ltd.In 2024-25, the engineering business of Raymond, generated a revenue of ₹1,824 crore, more than double from the previous year, while operating profit was at ₹237 crore, up 96 per cent year-on-year.In an interview to ET Infra, Maini outlined that in the aerospace and engine component segment, the engineering business has exposure to about 25 companies in the world, including six engine manufacturers such as Safran and Pratt & Whitney 'With Safran, we have had several agreements over the years in various products. We have over 350 part numbers that we already have on the LEAP engine . So, there are very few companies that can boast about having that many part numbers on a high volume narrowbody aircraft engine,' said Maini.At the recently held Paris Air Show, Safran and Maini Precision Products Ltd, a Raymond Ltd group company under the engineering division, signed a long-term agreement to supply assembled products for the CFM LEAP Engine.The company already manufactures turbine vanes, forged and machined metallic products for Safran. The company also entered into an agreement with Pratt & Whitney, for long-term supply of precision machined and assembled aerospace components.'It is (agreement with Safran and P&W) just an extension of all of those things where we are going up the value chain, taking on more complex parts, taking on more difficult parts," said Maini.Maini highlighted that almost the entire aircraft and engine component manufacturing business of the Raymond group is currently serving overseas customers with no significant exposure to the Indian market.'We will keep exporting and as the domestic market opens up, we will be ready for it. Currently, the exposure is less than 2 per cent and primarily for HAL (Hindustan Aeronautics Ltd),' said Maini.'At present, not a single material that we use today is made in India. Every part we make is from imported material coming from somewhere in the world and, therefore, there is a huge potential in this country to localise the materials,' he added.While the company has exposure to China in terms of sourcing of materials, Maini highlighted that they have not faced any roadblocks. In light of heightened trade tensions with the US, China has undertaken measures to restrict export of materials, especially rare earth metals.'So, right now there are some materials coming from there (China), but they are not in the rare earths category,' said Maini.Maini highlighted that the company is in a better position than most other competitors and in control of the supply chain with the ability to source materials from alternate sources, if any export restrictions arise in China.
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