Raymond open to acquisitions, bets on real estate for next growth phase

Mumbai: Diversified conglomerate Raymond Group—with interests in textiles and apparel, real estate, engineering, aerospace and defence—will continue to evaluate acquisition opportunities as it expands operations in India and abroad.

“We will look at investments from an acquisition point of view whenever the opportunities come. We are well-funded, we are a zero-debt company. So, we don't have a problem with that,” Gautam Singhania, managing director of Raymond Group, said in an interview with Mint on Wednesday.

Raymond Ltd, incorporated as Raymond Woolen Mill in 1925 near Thane Creek, celebrated its centenary on Wednesday in Mumbai. Started as a textile mill in the 1920s, the company has since diversified into real estate, aerospace and defence, and now operates through three listed entities in India.

Singhania was appointed chairman and managing director of Raymond Ltd in 2000. Shares of the company settled about 2% higher at ₹623.10 apiece on the BSE on Wednesday.

“There’s zero debt today; we are sitting on cash. We're generating cash so we're very comfortable. We're looking at deals all the time—in real estate we are looking for more projects, could be land owners…that will require capital etc,” Singhania told Mint on the sidelines of the event attended by celebrities and business executives. Vijaypat Singhania, who transferred control of Raymond to his second son Gautam, was notably absent from the event. Gautam Singhania's wife Nawaz and their two daughters were at the event.

Realty, defence drive plans

Under Singhania's leadership, the group has launched a series of strategic restructuring efforts to enhance its valuations and market position. The company has successfully spun off its branded apparel division into a separate listed entity Raymond Lifestyle Ltd and divested its fast-moving consumer brands, including Park Avenue, to Godrej Consumer Products Ltd. Additionally, Raymond is actively working to unlock value from its real estate assets in Thane by developing them under the Raymond Realty brand, laying the groundwork for a broader real estate strategy.

In April 2023, Raymond sold its FMCG business (Raymond Consumer Care) to Godrej Consumer Products via a slump sale valued at ₹2,825 crore.

Two of its three businesses have since debuted on the stock market.

Raymond Lifestyle, the branded apparel and menswear division, was demerged and separately listed in September 2024. Its stock closed nearly 2% higher at ₹1,308.65 on the BSE on Wednesday.

The denerger was aimed at creating a net-debt-free lifestyle entity and allowing Raymond Ltd to sharpen focus on real estate and engineering.

Following this, Raymond Realty—the group’s real estate vertical—was also spun off. The demerger was approved in May 2025, with July 1 as the listing date. Its stock settled 1.2% lower at ₹636.95 on the BSE on Wednesday.

In 2023, the group announced the acquisition of a majority stake stake in Maini Precision Products Ltd (MPPL) for ₹682 crore to foray into growing segments like aerospace, defence, and electric vehicles (EV). MPPL is engaged in manufacturing precision engineering products for aerospace, EV, and defence sectors. The group’s engineering vertical dates back to 1949, with JK Files and Engineering Ltd as a large manufacturer of steel files.

Raymond Realty, launched in 2019, reported around ₹2,300 crore in sales in FY25 and is targeting at least 20% growth this year. By FY26, it plans to launch six projects across the Mumbai Metropolitan Region, Mint reported earlier in June.

“Real estate is going to take capital… lifestyle doesn't need any capex because we're not investing into new (manufacturing)… engineering, auto if we have acquisition opportunities there could be something,” Singhania said.

In June this year, it had announced an investment of ₹1,200 crore in Andhra Pradesh with a focus on auto components and aerospace manufacturing.

Despite macroeconomic headwinds, the group is targeting annual growth of at least 15%. "You should see a growth of at least 15% for the group per year; I would like to grow Ebitda of at least 20%,” Singhania said.

“Each business has its own strategy and growth drivers. In real estate, it will be new projects which will drive growth. In lifestyle it could be new verticals, along with retail expansion. Defence is also a huge opportunity,” he said.

Meanwhile, recent tariffs imposed by the US on imports from India have burdened apparel exporters such as Raymond, which supplies ready-made garments to large American retailers.

“From our point of view—for a ₹14,000 to ₹15,00 crore group—our exports to the US are not even ₹500 crore. All of it is not going to get impacted, even if 10% gets impacted—it’s too small. Exports to the US as a percentage of the total group is coming down,” Singhania added.

In 2017, the company shifted part of its manufacturing base to Ethiopia, which attracts a lower 10% tariff in the US. Raymond is now stepping up efforts to secure larger orders from the UK, a strategy expected to gain traction once the India-UK free trade agreement takes effect, Mint reported earlier.