Shares of Raymond Ltd. rose from the day’s lows on Monday, October 12, after announcing that its arm is setting up an additional brownfield manufacturing facility near its existing manufacturing facility in Andhra Pradesh to meet growing customer demand and support incremental volumes during the current financial year.
In an exchange filing, the company said that the expansion is being undertaken through a subsidiary as an interim capacity augmentation initiative, while its planned greenfield project in the state continues to progress as scheduled.
Raymond said the additional brownfield capacity would help it respond more quickly to current customer requirements, while the greenfield facility is envisaged as a larger, long-term manufacturing platform to support its medium- and long-term growth plans.
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The company is pursuing a two-stage expansion strategy, combining near-term capacity augmentation through the brownfield facility with the planned greenfield project to build manufacturing capacity for future growth.
“The accelerated expansion in Andhra Pradesh reflects the strong momentum we are seeing in the business. While our greenfield project remains the foundation for our longer-term growth, the additional brownfield capacity will allow us to respond faster to current customer requirements,” said Sanjeev Sharma, Joint Managing Director and Chief Executive Officer of JKMPTL, Raymond Group.
“This approach enables us to capture near-term opportunities while continuing to build a scalable platform for sustained growth,” he added.
Raymond said the strategy is aimed at strengthening its manufacturing capabilities and building a capital-efficient platform to address opportunities across domestic and global markets.
Shares of Raymond made an intraday low of ₹1,168.5 before staging a minor recovery. The stock is down 0.8% currently at ₹1,177.3. The stock has declined in four out of the last five trading sessions.