Mumbai: Raymond Chairman Gautam Singhania has said the China+1 strategy has evolved from being a business trend into an “operational imperative” for multinational corporations as they seek to build more resilient and diversified global supply chains. Speaking at the company’s annual general meeting (AGM) earlier this week, Singhania said global manufacturers are increasingly looking for reliable partners capable of delivering speed, quality and scale, positioning India as a preferred manufacturing destination.
His remarks come amid continued efforts by multinational companies to reduce their dependence on China for manufacturing, driven by geopolitical tensions, supply chain disruptions and the need for greater operational resilience. India has emerged as one of the biggest beneficiaries of this shift, supported by government initiatives, improving infrastructure and rising domestic demand.
China+1 strategy reshaping global manufacturing
Addressing shareholders at the AGM, Singhania said the China+1 strategy is no longer merely an emerging trend but has become a critical business requirement for multinational companies.
“The accelerating China-Plus-One strategy is no longer just a trend — it is an operational imperative for multinational corporations seeking supply chain resilience,” he said.
The China+1 strategy refers to companies diversifying manufacturing operations beyond China by establishing production facilities in additional countries. The approach gained momentum following the COVID-19 pandemic, global supply chain disruptions and rising geopolitical uncertainties, prompting businesses to reduce concentration risks.
According to Singhania, multinational corporations are increasingly prioritising manufacturing partners that can provide dependable production capabilities while maintaining high standards of efficiency and quality.
Global OEMs seeking trusted manufacturing partners
Singhania said global original equipment manufacturers (OEMs) are actively searching for partners capable of delivering precision engineering, consistent quality and rapid execution.
“Global OEMs are looking for trusted, high-precision manufacturing partners who can deliver speed, quality and scale,” he said.
He noted that Raymond’s engineering business has strategically positioned itself to capitalise on this growing opportunity by expanding its capabilities across automotive and aerospace manufacturing.
As international companies diversify their supplier base, Indian manufacturers with advanced engineering expertise are expected to benefit from increased export opportunities and long-term contracts.
Raymond expands manufacturing footprint in Andhra Pradesh
To strengthen its presence in advanced manufacturing, Raymond is making significant investments in Andhra Pradesh through two major projects.
The company is investing Rs 430 crore to establish an automotive components manufacturing facility in Gudipalli. The plant is expected to generate more than 4,000 direct jobs and will manufacture components for both domestic and international automobile manufacturers.
The investment reflects Raymond’s broader strategy of expanding beyond its traditional textile and apparel businesses into high-value engineering and manufacturing sectors.
The new facility is expected to support increasing demand from global automotive companies seeking diversified sourcing destinations.
Aerospace business gathers momentum
Alongside its automotive expansion, Raymond is investing Rs 510 crore in a dedicated aerospace manufacturing facility in Andhra Pradesh.
The proposed unit is expected to create approximately 1,400 direct engineering jobs and will manufacture precision-engineered components for global aerospace customers.
The aerospace sector has emerged as a significant growth opportunity for Indian manufacturers, driven by increasing global demand, supply chain diversification and India’s improving industrial capabilities.
Raymond aims to leverage its engineering expertise to become an important supplier within international aerospace supply chains.
Strong aerospace order book
Singhania said Raymond entered FY27 with an aerospace order book worth approximately Rs 2,350 crore, covering business over the next five years.
He added that the company is gradually moving beyond traditional “build-to-print” manufacturing towards higher-value engineering services, including co-design, value engineering and build-to-spec systems.
This transition enables manufacturers to participate earlier in product development while offering customised engineering solutions, thereby improving profitability and strengthening long-term customer relationships.
The move up the value chain also reflects the increasing confidence global customers have in India’s engineering and manufacturing capabilities.
India strengthening its manufacturing position
Singhania expressed confidence that India’s role in global manufacturing will continue to expand in the coming years.
He attributed this growth to strong domestic consumption, sustained infrastructure development and government initiatives designed to promote local manufacturing under programmes such as ‘Make in India’ and production-linked incentive (PLI) schemes.
He also observed that an increasing number of international companies are evaluating investment opportunities in India as they diversify their global operations.
Industry experts believe India’s large workforce, competitive manufacturing costs, expanding industrial ecosystem and improving logistics network have strengthened its attractiveness as an alternative manufacturing hub.
As multinational corporations continue implementing China+1 strategies, companies with advanced engineering capabilities are expected to benefit from rising global demand for diversified supply chains.
For Raymond, the company’s investments in automotive and aerospace manufacturing, combined with its expanding engineering capabilities, position it to capitalise on the long-term shift in global production networks while contributing to India’s ambition of becoming a leading global manufacturing destination.