Raymond Group is accelerating its aerospace, defence, and engineering manufacturing expansion in Andhra Pradesh, with an additional brownfield facility planned alongside its larger greenfield project to meet near-term customer demand and ensure a smooth transition of operations from Bengaluru.
Speaking to NDTV Profit, Rakesh Tiwari, CFO of Raymond Group, said the brownfield facility will help the company prepare production processes, qualify machinery, train its workforce, and verify manufacturing processes before operations are progressively shifted to the new facility in Andhra Pradesh.
The company announced the additional brownfield expansion on Oct. 12, saying it is expected to support incremental customer requirements and volumes during the current financial year. The greenfield project, meanwhile, remains the foundation of its longer-term manufacturing capacity expansion.
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Brownfield Expansion To Protect Business Continuity
Raymond currently operates multiple manufacturing facilities across Bengaluru, with additional operations in Nashik and other locations in Maharashtra and Karnataka. The company plans to consolidate its fragmented manufacturing operations at its 77-acre site in Andhra Pradesh to improve operational efficiency, strengthen backward integration, and cater to domestic and global opportunities.
Tiwari said the brownfield facility is intended to address immediate capacity requirements, while the greenfield project will provide the infrastructure needed for long-term growth.
“The cost is minuscule of the brownfield facilities as compared to whatever capex we are ultimately incurring for the greenfield,” Tiwari told NDTV Profit. However, he declined to disclose the investment involved or specific commissioning timelines, saying the company would provide the details at an appropriate time.
He added that the brownfield facility would help ensure business continuity during the transition, preventing delays in production and revenue generation as existing manufacturing operations move to Andhra Pradesh.
Bengaluru-To-Andhra Transition To Be Gradual
Raymond plans to operate its existing Bengaluru facilities alongside the new Andhra Pradesh operations during the transition. Manufacturing activities will be shifted progressively as capacity comes on stream, rather than moving all operations at once.
Tiwari said the brownfield facility would support machinery qualification, process verification, workforce training, production planning, and supply chain readiness. This would allow the company to meet customer requirements while preparing the larger facility for production.
The company has said its greenfield project is progressing as scheduled, although it has not disclosed a specific commissioning date for either facility in the interview.
The two-stage expansion is intended to combine near-term capacity additions with a scalable manufacturing platform for medium- and long-term growth, strengthening Raymond's capabilities across aerospace, defence, and engineering.
Raymond Share Price Today
Shares of Raymond have declined more than 3.5% intraday today, even though the company has been rigorously working towards expansion and growth.
The stock is trading at Rs 1,143.5 apiece on the NSE, down from its previous close at Rs 1,186.1.
Also Read: Raymond Realty Q2 Pre-Sales Jump 98% To Rs 902 Crore, On Track For FY27 Guidance
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