Aequs, which owns special economic zone (SEZ) at Belagavi where it runs aerospace and automotive businesses, looks at consolidating its position in the aerospace business, in the next five years.
“We have enough order book with us and quite good acquisitions abroad. Our SEZ also houses leading technology companies in aerospace. Now we want to consolidate it till 2020,” said Aequs Group CFO and Managing Director Rajeev Kaul in an interaction with Deccan Herald. The company’s SEZ, spread over 252 acres, has 21 operating units in total and over 600,000 sq feet of manufacturing space and three more will be ready by the end of this year.
Aequs has recently won a contract to supply machined titanium parts for Airbus Group’s A320neo (new engine option) aircraft. The company has been producing machined parts for Airbus single-aisle, long-range and large aircraft since 2009.
Kaul said the company’s recent acquisition in Paris, Texas (one plant for aero structure capability), and in Paris (six plants) has given it more technological edge in the industry.
“Aerospace is a technology-intensive industry where the product development will take time. These acquisitions will help us reach our total revenues to $400 million (Rs 2,500 crore) by 2020, thereby making Aequs a significant market share player in the Indian commercial aerospace manufacturing sector.” he said.
He also appreciated the government for coming up with a sunset policy for SEZ ending 2020, but cautioned that the aerospace industry needs further support. “There is a long gestation for an aerospace plant to get operational. Also, getting licence and certification will also take time. So, we want government to come up with a new policy for defence and aerospace industry, on the lines of concession given to IT industries,” he said.
The Aequs Aerospace has entered into an agreement with All Metal Services (AMS), a subsidiary of Reliance Steel and Aluminium Company, to manufacture aerospace materials and applications.
On the expansion front, Kaul said the company has started evaluating the requirement. “We have enough land and manufacturing facilities to meet our requirement till 2020. But after that we might require additional 250 to 500 acres. We have already requested the government about it in the Global Investors Meet 2016. The high power committee led by chief minister has given sanction for the project,” he said.
Aequs has invested Rs 667 crore on its 250-acre aerospace machining facility at the SEZ in Belagavi.
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