To scale up its manufacturing capacity as well as research and development (R&D) in commercial aviation space, component manufacturer Raymond Engineering plans significant capital expenditure of about ₹118 crore in FY26.
Raymond Engineering Business’ Chief Executive and Managing Director Gautam Maini said the company is scaling up its aviation business with a 25 per cent revenue growth visibility for FY26.
At present, Raymond Engineering business, via JKMGAL (JK Maini Global Aerospace Limited), manufactures over 1,200 aerospace parts, 78 per cent of which are for aero engines and has about 150 parts in the new product development pipeline.
“India’s aerospace and defence manufacturing market is projected at $15–20 billion by 2035, with civil aerospace growing through OEM partnerships and defence expanding through indigenisation and exports. We see this as a once-in-a-generation opportunity where Indian industry can play a defining role in the global supply chain,” Maini said.
“Our focus is on high-complexity, critical parts where quality, reliability, and certifications become true differentiators.”
Accordingly, Maini cited the strategy to expand market share is through increasing participation in engine and structure component packages, which command higher margins and entry barriers are capital intensive.
“We are scaling and building in-house special process capabilities that are critical for long-term work packages. Besides, we are targeting multi-year LTAs (Long-Term Agreements ) with global Tier-1s who are diversifying sourcing from China and Europe to India,” he said.
According to Maini, there have been significant macro tailwinds in the aerospace market.
“Enquiry momentum and pipeline have accelerated since 2022, led by three structural drivers—civil aerospace recovery (with global aircraft deliveries expected to double in the next decade), OEMs’ supply chain diversification into India under ‘China+1’ (5–10 per cent sourcing shift), and indigenous defence programmes,” he said.
“While these opportunities take time to mature, our commitment to ‘Make in India’ remains firm and long-term. We have customer contracts averaging 5 years, providing clear visibility and stability to our operations.”
Furthermore, he pointed out that India and JKMGAL are expected to benefit as a cost-competitive, high quality component sourcing base for commercial aviation.
“Global aerospace sourcing is undergoing a major realignment. Post-COVID, OEMs are consciously de-risking their supply chains by reducing geographic concentration, and India is emerging as a serious beneficiary,”
“By 2030, the country is expected to capture $5–7 billion of new annual sourcing, driven by its labour cost advantage and strengthening base of globally certified suppliers.”
