The Raymond group, known for its worsted suitings, on Friday announced the acquisition of a 59.25 per cent stake in Maini Precision Products Ltd (MPPL) for Rs 682 crore. This purchase is expected to strengthen its existing engineering business.

Bangalore-based MPPL is largely engaged in manufacturing of precision components and sub-assemblies for the automotive and industrial and aerospace segments. It had posted revenues of Rs 746.63 crore in 2022-23.

The acquisition is being funded by a mix of debt and internal accruals and it is subject to requisite regulatory approvals. The Raymond group expects to complete the transaction in the current fiscal.

Raymond said in a regulatory filing that it plans to consolidate its engineering business and MPPL to build scale and profitable growth. The acquisition is also expected to venture into sunrise sectors such as aerospace, defence and electric vehicle components.

The deal will see Ring Plus Aqua Ltd (RPAL), a step-down subsidiary of Raymond, having a direct stake of 59.25 per cent in MPPL.

Post the acquisition, the company will consolidate JK Files (a subsidiary), RPAL and MPPL business and will form a new subsidiary-`Newco’.

Gautam Maini, the founder of MPPL, will lead the consolidated engineering business.