Quest Global sets up first aerospace SEZ
The co has pumped in Rs 150 cr for the facility & inked MoUs for making parts
Aerospace & engineering major — Quest Global, on Saturday, launched the country’s first aerospace Special Economic Zone (SEZ) here for development and manufacture of aerospace precision engineering products.
The SEZ has come up on a 300 acre site at an investment of Rs 150 crore.
Chief Minister B S Yeddyurappa said the SEZ would act as a catalyst to foster economic growth in this region. “We are in the process of acquiring 5,000 acres of land to develop industrial clusters across the state”, he added.
The Centre has approved establishment of 50 SEZs in the State of this 17 had already come up, he said adding these had brought in Rs 9,000 crore investment and provided 59,000 jobs. QuEST Global Co-founder & Chairman Arvind Melligeri said the SEZ would provide the best possible eco system for aerospace precision engineering and manufacturing to build design-to-build solutions.
The Bangalore-headquartered company was looking to invest US$500 million in the next ten years, he said. Currently, the SEZ houses an engineering services facility, a precision machining facility and sheet metal unit within the Aerospace Processing India (API) unit.
QuEST Global on the occasion signed MoUs with Belgian aerospace company SABCA to manufacture metallic parts, assembly work for Airbus A-350XWB flap tract structures.
With North American Magellan Aerospace to set up a new dedicated facility to manufacture components and sub-assemblies for aero engines.
PE funding
Further, Quest Global said it is in talks with global private equity firms to raise US$50 million to fund its engineering services.
The fund raising is expected to be completed over the next six months. “(Presently there are ) no plans for an IPO...but you know, it will be there as we go forward,” Nelligeri said.
The company is likely to shed a ‘small stake’ to raise money for expanding engineering facilities, Chief Marketing Officer of Bejoy George told PTI. He did not disclose the extent of dilution of stake by the promoters.
