Raymond has acquired automotive component maker Ring Plus Aqua Ltd through a wholly-owned subsidiary Scissors Engineering Products.
The Rs 2,000-crore (Rs 20 billion) Raymond had recently announced a joint venture with MOB France to manufacture files and rasps in India though Raymond's subsidiary, J K Files & Tools.
Gautam Hari Singhania, chairman and managing director, Raymond, said the acquisition of the automotive component maker was in line with the company's enhanced focus on the engineering segment.
"Earlier, the company had planned to divest the engineering business. Now, the decision has changed and we have realised the importance of the engineering space," he said.
Singhania said the size of the engineering business was expected to double from the existing Rs 200 crore (Rs 2 billion) in two years. The company is open to get into more sectors in the engineering space, he said. But he refused to divulge more details.
Harshal Jayavant, president - engineering business, said RPAL has a production capacity of 3 million bearings and 2 million gears. "Our immediate plan is to scale up the production by 20 per cent," he said.
J K Files & Tools is the main money spinner in the engineering business. The subsidiary is the largest file maker in the world with an installed annual capacity of 65 million units. It has an 80 per cent market share in India.
Jayavant said Raymond supplied files to automobile companies and, therefore, getting into automotive component business was a logical extension.
