Raymond Shares Jump Nearly 4% After Appointing Former BEL Chief to Lead Defence Business

Mumbai, July 6: Raymond Ltd share price gained nearly 4% in intraday trade on Monday after the company announced the appointment of former Bharat Electronics Ltd (BEL) Chairman and Managing Director (CMD) Bhanu Prakash Srivastava as the Chief Executive Officer of its defence business. Investors welcomed the move, viewing it as a significant step in Raymond’s efforts to strengthen its presence in India’s fast-growing defence manufacturing sector.

The stock rose nearly 4% during the session before trimming some gains, as the appointment boosted optimism over the company’s long-term plans in the defence and aerospace segment. As of writing the stock was up 1.9% at Rs 619.

Former BEL chief to head defence vertical

Raymond said Srivastava will lead its defence vertical, bringing with him more than three decades of experience in India’s defence electronics industry.

Before joining Raymond, Srivastava served as CMD of state-owned Bharat Electronics Ltd (BEL), where he played a key role in expanding the company’s capabilities across radar systems, communication equipment, electronic warfare systems and other advanced defence technologies.

Stock has climbed 22% over a month versus Nifty smallcap 500 rising 6%. Source: NSE

His appointment is expected to help Raymond strengthen its technological capabilities, expand strategic partnerships and accelerate execution in the defence business.

Focus on defence manufacturing

The appointment comes as Raymond looks to scale up its defence business amid the Indian government’s strong push for indigenous defence manufacturing under the ‘Atmanirbhar Bharat’ initiative.

India has significantly increased defence procurement from domestic manufacturers in recent years, creating opportunities for private-sector companies to participate in areas such as aerospace components, ammunition, precision engineering and defence equipment manufacturing.

With an experienced industry veteran at the helm, Raymond aims to position itself as a stronger player in the evolving defence ecosystem.

Why investors cheered the move

Market participants viewed the appointment positively, as leadership with deep industry expertise is seen as critical for winning large defence contracts and navigating the sector’s complex regulatory and procurement landscape.

Analysts believe Srivastava’s extensive experience in dealing with the armed forces, defence public sector undertakings and government agencies could provide Raymond with a competitive edge as it expands its defence operations.

The move also signals the company’s commitment to investing in businesses beyond its traditional textiles and apparel operations.

Raymond’s diversification strategy

Raymond has been steadily diversifying its portfolio over the past few years.

The company has increasingly focused on reducing its dependence on its legacy lifestyle operations. Its defence vertical forms part of this broader strategy to tap high-growth sectors supported by long-term government spending.

As India continues to increase capital expenditure on defence modernisation and domestic manufacturing, companies with specialised engineering capabilities are expected to benefit from rising procurement opportunities.

Outlook

Investors will now watch for further announcements from Raymond’s defence business, including potential order wins, partnerships and capacity expansion plans under its new leadership.

While the appointment itself does not immediately impact the company’s financial performance, the market views it as a strategic step that could strengthen Raymond’s long-term growth prospects in one of India’s fastest-growing industrial segments.

Source: https://www.nseindia.com/get-quote/equity/RAYMOND/Raymond-Limited