JOIN US Aerospace components manufacturer Aequs said it is sitting with an order book of $150 million over five year period and investment commitment of five more units at its SEZ facility in Belagavi.
Aequs chairman and chief executive Aravind Melligeri told Deccan Herald the company’s SEZ has 10 units operating. “We have 250 acres of land, of which 25 acres are for the SEZ. We have already made investment of $30 million to the facility,” said Melligeri.
Aequs established an aerospace industrial hub in 2009 at Belagavi. “We have developed 130,000 square metres of facility from the 65,000 square metres in the last two years. This year we are planning to add 120,000 square metres of property,” he said. The company has already developed 40 per cent of the SEZ land and 50 per cent of the land outside.
Aequs, which began its operations in 1997 as an engineering services company called QuEST Global Manufacturing based out of the US, entered into manufacturing of aerospace and defence components in 2006.
“We import 100 per cent of raw materials and 100 per cent of cutting materials. Even though we have a tie-up with HAL, we export 99 per cent of our products,” he said.
He said the company is into the automotive and oil and gas business. “These verticals help us in balancing the business cycle. Aerospace requires long gestation period in getting business returns. Oil and gas are short cycle, and auto medium cycle,” he said.
“Aerospace sector is a $80 billion-$100 billion industry globally and India is only touching at a few hundred million dollars right now,” said Melligeri.
Even though the high cost of capital, weak infrastructure and power support continue to be a challenge in India, the industry is gaining momentum with the growing skill sets of the country.
He said Aequs is the largest player in machining. “We can touch five per cent of the market in this segment. We are competing in a global scale and there is a cost advantage in India,” said Melligeri.