Dedicates High-end multi capability Aerospace and Defence manufacturing facility in Goa

Today at Aero India 2017, Aequs, India’s largest ecosystem in aerospace precision engineering and manufacturing company announced to extend its ecosystem in aerospace and defence sector. Aequs will open a high-end multi capability aerospace and defence manufacturing facility in Tuem, Goa. This is the first venture of its kind in the private sector in India, which will manufacture high-end components & systems for aerospace and defence sector and support the ‘Make in India’ initiative.

The new facility will be established with an initial investment of Rs 500 crores towards development of physical infrastructure, plant, machinery and equipment and is strategically located at the Industrial cluster (EMC) Tuem, Goa.

The new Aequs facility will be a multi-capability precision engineering with CNC machines and new age technology to design and produce precision components for the Indian Defense sector. It will also support the ‘Skill India’ initiative by upskilling employees in the fields of precision manufacturing and other new age technologies, thus bringing a key capability in aerospace manufacturing in the country.

During the deal signing, Aravind Melligeri, Chairman and CEO, Aequs said, “The new facility in Tuem, Goa is a sign of our commitment towards the Indian Defence sector. The sector relies heavily on imported equipment and technology. With the new facility, we aim to support the ‘Make in India’ initiative for one of the most critical sectors in the country. Our strategy will also see technology transfers from aerospace giants around the globe, adding further to our manufacturing capabilities besides generating employment to close to 2000 people.”

Ameya Abhyankar (I.A.S), Secretary and Director Information Technology said, “To support our robust growth and expansion in the aerospace and defence sector, we are happy to host Aequs’s manufacturing facility in Tuem, Goa. This development will further provide an impetus to the Indian Defence sector and drive the vision of ‘Make In India’ forward.”

Aequs, which entered into the defence manufacturing business in 2013, has been actively looking for opportunities to partner with India’s prestigious and largest A&D organization, Hindustan Aeronautics Ltd (HAL).  Since then, Aequs has been working with HAL on machined structural parts for various platforms, including Light Combat Aircraft, Sukhoi 30MKI, ALH, among others. With the new facility in Goa, Aequs aims to delve deeper into manufacturing of high-end aerospace and defence equipment hence reducing costs of import and add to in-country value for the Indian Defence sector.

Aequs Aerospace is headquartered within the Aequs Special Economic Zone, Belagavi. From raw materials to equipment and processes, Aequs maintains the highest standards that are globally recognized. The SEZ hosts separate facilities for Fabrication, Machining, Treatment, Assemblies, Warehousing, etc., that supports the entire manufacturing value chain.  Aequs operates several manufacturing facilities in India, US and France.

Airbus, the European aircraft maker, has signed a contract with component maker Aequs Aerospace (based at Belagavi, Karnataka) for manufacture of titanium components as it ramps up production of its A320neo aircraft for global consumption.

It is the first time an Indian company is getting a contract for the manufacture of critical components in an Airbus plane. Aequs will supply 100,000 machined parts, for use to mount engines on the wings of the A320neo aircraft over the next few years, to be made at its 100,000 sq ft factory at Belagavi (earlier Belgaum). The company is already a Tier-1 supplier for Airbus, one among 12 such suppliers in India (including government-owned Hindustan Aeronautics that manufactures doors for Airbus planes).

IndiGo, this country’s largest passenger airline by market share, recently took delivery of its first Airbus A320neo, part of an order of 24 aircraft to be delivered by March 2017.

“India is a strategic market for Airbus, not only for its market size but also because of access to the right skills and resources. We’re growing from strength to strength,” said Srinivasan Dwarakanath, president of Airbus for India.

Airbus procures close to 80 per cent of the components that go into its planes from vendors across the globe. It says the contribution from Asia, especially India, is rising. Sourcing volumes from India have grown by 16 times in the past decade. Procurement from India – information technology, customer support and components – was $500 million (Rs 3,335 crore) in 2015 and is expected to grow to $2 billion in 2020.

For Aequs, the partnership with Airbus poses a $75 mn revenue opportunity by 2020. The company plans to hit revenue of $100 mn this year and $300 mn by the end of the decade.The company claims 85 per cent domestication of manufacturing components.

“It’s about creating value and shrinking the supply chain. That’s why Airbus is interested in us to build this eco-system. Today, we are one location where you can bring in raw materials, forge, machine, surface treat, assemble and ship it to a customer,” said Aravind Melligeri, chairman and chief executive at Aequs.

Airbus has grown its supplier base in India from three entities a decade earlier to 45-odd today. The country’s growing demand for aircraft matches its growing prowess in aeronautic manufacturing capabilities. Airbus says it takes close to 25 years to develop a country as an aeronautic hub and while India has the potential, it has a long way to go before it can get there.

With an order backlog of 528 aircraft for this country, Airbus said it would begin delivering a plane every week to India for the next 10 years, starting in the second half of 2016. To tap into all aspects of this growing system, the company will subsequently expand its engineering, customer service, aerospace parts supply and research and technology innovation arms here.

It recently announced the setting up of a pilot training facility on the outskirts of Delhi, for which it has allocated $40 mn (Rs 270 crore).

News Courtesy: Business Standard

 The JV further strengthens Aequs manufacturing capabilities across all of the industry verticals where it has a strong presence

Precision machining manufacturer for aerospace companies Aequs said it has set up a joint venture with Precihole Machine Tools, a Mumbai-based provider of deep hole drilling solutions to the oil and gas industry, to manufacture components for the global market.

The facility, to be operational by August 2016, aims to leverage low cost manufacturing advantages while delivering to global companies which are keen to source precision machining components in emerging economies like India.

Apart from the oil and gas sector, deep hole drilling finds applications in defence, automotive, as well as aerospace. This strategic initiative further strengthens Aequs manufacturing capabilities across all of the industry verticals where Aequs has a strong presence. More specifically, the capabilities offered by this joint venture are directly applicable for aircraft landing gear in which the aerospace segment already provides precision-machined landing gear components, the company said in a statement..

Aravind Melligeri, Chairman & CEO, Aequs said, “It is part of our business strategy to strengthen our manufacturing offerings to our customers by partnering with industry experts such as Precihole and offer world class capabilities across the verticals. With this strategic partnership in Deep Hole Drilling, we are confident of positioning Aequs to be a significant player in the Oil & Gas sector when the market rebounds.”

Aequs serves customers like Baker Hughes and Halliburton among others in the oil and gas segment machining complex parts, used in drilling and oil exploration process.

V R Nayak, Co-founder, Precihole Machine Tools, said: “We are excited to partner with Aequs and exchange our knowledge and expertise and leverage the infrastructure available in Aequs SEZ to set up our new facility. This new relationship will lead to providing better services to our customers and we look forward to a robust growth with new business opportunities.”