Raymond Group to invest Rs 1,000 cr in aerospace & automotive sectors in Andhra

Hyderabad: The Andhra Pradesh government on Wednesday approved two major investment proposals from the Raymond Group worth Rs 1,000 crore under the Industrial Development Policy 4.0 (2024–29).

The projects, focused on aerospace and automotive components manufacturing, are expected to generate more than 5,400 direct jobs in Sri Satya Sai District.

Raymond Group’s subsidiary, JK Maini Global Aerospace Limited, will establish an advanced aerospace manufacturing facility in Sri Satya Sai District with an investment of Rs 510 crore. The plant will produce precision components for global Original Equipment Manufacturers (OEMs) and Tier-1 suppliers, integrating Andhra Pradesh into the global aerospace supply chain. Commercial production is expected to begin by May 2027.

Another subsidiary, JK Maini Precision Technology Ltd, will set up a world-class automotive component manufacturing unit at Gudipalli, investing Rs 430 crore. This facility, also scheduled to start operations by May 2027, will cater to leading Indian and global automobile manufacturers, driving regional employment, industrial growth, and skill development across Andhra Pradesh.

For the aerospace unit, the government will allocate 32.28 acres in Gudipalli at a rate of Rs 45.95 lakh per acre, and an additional 15 acres at Rs 37.72 lakh per acre. The unit will also receive a capital subsidy amounting to 57% of the Fixed Capital Investment (FCI), capped at Rs292.41 crore, to be disbursed over 10 years.

Additionally, an employment subsidy of 9% of the FCI, limited to Rs 46.17 crore, has been sanctioned. These benefits are conditional on the company commencing commercial production by May 2027.

This marks Andhra Pradesh’s first aerospace investment under the new Aerospace Policy, signaling the state’s strategic move into high-technology manufacturing and precision engineering.

“The approvals were cleared after detailed deliberations at the State Investment Promotion Board meeting chaired by Chief Minister Chandrababu Naidu, following recommendations from the State Investment Promotion Committee,” said a senior official of the Industries Department.

“Under the ‘Speed of Doing Business’ initiative, the Industries Department will provide dedicated facilitation support through a Project Management Unit and the Single Desk Portal 2.0, ensuring timely and seamless project execution. These projects will catalyse ancillary industrial growth, enhance workforce skills, and position Andhra Pradesh as a hub for advanced manufacturing in India,” the official added.

For the automotive components unit, the government will allocate 30 acres of land to JK Maini Precision Technology Ltd (JKMPTL) in Gudipalli at Rs 45.95 lakh per acre.

The project will receive a capital subsidy of 57% of FCI, limited to Rs 245.1 crore, payable over 10 years, along with an employment subsidy of 10% of FCI, capped at Rs 43 crore.