Rangsons Aerospace Raises INR 300 Crore to Fuel Growth
Bengaluru, March 13, 2025 – Rangsons Aerospace, a leading product technology firm for aerospace, defense and homeland security has announced today that it has secured an investment of ₹300 crore (USD 36.5 Million) towards expanding its operational capacity to address the increasing demand for its Products and Solutions for the commercial and military aviation markets globally, and drive growth into new business areas through strategic acquisitions. This funding round was led by ValueQuest Investment Advisors and had Anand Rathi Advisors as the financial advisor for the transaction.
This investment in Rangsons Aerospace marks the first addition to the portfolio construction for ValueQuest Tristar Fund, a Category II AIF (Alternate Investment Fund) focused on thematic sector investments. With deep niche expertise in these industries, ValueQuest believes the tailwinds in these sectors will drive long-term, decadal growth, making it an opportune time to launch this thematic fund.
Mr. Pavan Ranga, Managing Director, Rangsons Aerospace said, “We are excited about this fund raise from ValueQuest. It will help accelerate our expansion plans and enhance our ability to serve the growing demands of the aerospace and defense sectors”. He further added, “This investment fuels our vision of expanding into global markets and advancing aerospace innovation. One of our goals is to capture a significant share of the ₹20,000 crore fluid-conveyance system market while continuing to develop world-class solutions for India’s Ministry of Defence and international partners.”
Mr. Aniket Dharamshi, Fund Manager, VQ Tristar, added, “The team at Rangsons has built a promising business and we are confident in their ability to continue scaling. We are excited to partner with them on their growth journey and support their vision of becoming a leader in aerospace and defense solutions.” Additionally, Mr. Ravi Dharamshi, Founder & CIO, ValueQuest, stated “Tristar is specifically designed to capitalize on the long-term growth potential in sectors like defense, aerospace, and precision engineering. With our deep sector specific expertise, we are well-positioned to identify and partner with breakthrough entrepreneurs like Pavan and his team at Rangsons to create long-term value.”
Mr. Sachin Mehta, Director, Anand Rathi Investment Banking, added: “We are honoured to partner with Rangsons Aerospace, part of the prestigious NR Group, and grateful to Pavan for this opportunity. This marks our fourth transaction in the burgeoning Indian aerospace sector and our second with ValueQuest. We look forward to supporting the sector’s growth with our expertise and deep industry knowledge.”
Mr. Samir Bahl, CEO, Anand Rathi Investment Banking, commented:
“Rangsons Aerospace has built a strong reputation as a trusted partner for global aerospace and defence majors, backed by large orders, strong execution capabilities, and visionary leadership. This transaction highlights the increasing investor confidence in India’s aerospace sector, and we are proud to have facilitated this partnership between Rangsons Aerospace and ValueQuest.”
Can the Budget Revive India’s Growth from 6.4%
1.Macro Indicators: Growth and Fiscal Deficit
- The GDP growth for FY25, as projected by the RBI, stands at 6.76, while the first advance estimates by the government anticipates 6.4%, a four year low. This budget will need to align its policies to reverse the recent slowdown and push GDP growth closer to the earlier aspiration of 7%.
- Fiscal deficit control remains critical. With the FY25 target at 4.9% of GDP, the upcoming budget is expected to tighten this further to approximately 4.3%. However, the depreciating rupee (₹86/$) could be a challenge, on account of the rising global pressures.
2.Infrastructure Spending
- The 2024 budget allocated ₹11.11 lakh crore (3.4% of GDP) to infrastructure, including roads, water, and urban development. For 2025, an even higher allocation is expected to sustain growth momentum. Efficient execution, however, will be the key monitorable factor, addressing delays caused by state elections in the previous year and other administrative challenges.
- Railways are expected to witness continued focus in what can be termed as Railway Capex 2.0, with investments in wagons, new routes, and high-speed rail projects and corridors driving long-term connectivity and economic benefits.
3.Retail Investors and Market Protection
- Retail investor participation in markets has surged, with monthly SIP contributions growing by more than 200% from ₹8,000 crore in 2019 to ₹25,320 crore in 2024. As Nirmala Sitharaman aptly pointed out in 2019, the retail investors’ should not be underestimated with their increasing role in India’s financial ecosystem.
- As the Finance Minister emphasized in earlier budgets, the government remains committed to protecting retail investors. This budget could see measures to further encourage systematic investments while curbing speculative activity with a strong word of caution, as over 93% of retail investors have lost money in the F&O frenzy in three years.
4.Private Sector Push and Capex Revival
Private sector capital expenditure remains below pre-pandemic levels, with a sharp 22% YoY drop in new project announcements. To address this, the budget could introduce:
- Incentives for R&D, such as a National Research Fund and targeted VC funding.
- Capex-linked tax breaks and enhanced depreciation benefits to stimulate investments.
Simplification of tax structures (e.g., lower surcharges and increased minimum tax slab under the new regime) could also spur disposable income and private capex.
5.Green Energy and Mobility
Execution is the buzzword for the EV sector, with policies that should focus on:
- Expanding EV charging infrastructure.
- Enhancing public transport electrification, such as interstate and intrastate electric buses.
Renewable energy storage, such as pump hydro storage, could also see targeted policy support.
6.MSMEs: Bridging Credit Gaps
Addressing supply-side constraints and improving access to formal credit channels remain priorities. Liquidity measures and tax benefits for MSMEs could ease their challenges and ensure their sustained contribution to the economy.
7.Water Infrastructure and River Linkage
- Long-pending projects, could see enhanced clarity on inter-state agreements and execution frameworks, like the ₹40,000 crore Ken-Betwa river linkage. Investments in water infrastructure may accelerate under a broader sustainability agenda.
The Union Budget 2025 is expected to strike a balance between fiscal prudence and growth. With a focus on infrastructure, green energy, and private sector revival, it may signal a pragmatic approach to addressing immediate challenges while laying the foundation for long-term economic progress. The Finance Minister’s commentary will be key in setting the tone for the next fiscal, emphasizing execution as the defining element for 2025. Although the market might see a short term volatility it will remain largely range-bound over the next three months, driven by a mix of cautious optimism, global headwinds and what is expected to be a tepid earning season.
– Hemant Shah, Fund Manager, Seven Islands PMS