Aequs Expands with New MRO Facility and 1,000+ Jobs in Belagavi

Aequs to Set Up MRO Facility and Hire 1,000+ Employees

Aequs, a leading contract manufacturer in the aerospace and consumer goods industries, has announced ambitious plans to expand its operations by setting up a Maintenance, Repair, and Overhaul (MRO) facility in Belagavi, Karnataka. This move is part of the company’s strategy to strengthen its aerospace manufacturing capabilities and tap into the growing demand for MRO services in India. By 2026, Aequs aims to hire over 1,000 employees to support this expansion, signaling a significant boost to the local economy and the aerospace sector.

The company’s decision to venture into the MRO segment comes at a time when India’s aerospace industry is experiencing rapid growth. With the country’s aircraft fleet expected to double in the coming years, the demand for MRO services is projected to surge. Aequs’s new facility, developed in partnership with Canada’s Magellan Aerospace Corporation, will initially focus on turboprop engine refurbishment and overhaul, addressing a critical gap in the Indian market.

Aequs’s expansion is not limited to aerospace. The company is also eyeing growth in the consumer electronics sector, particularly in precision manufacturing for smart rings and other consumer durables. With a strong foundation in precision engineering and a vertically integrated manufacturing ecosystem, Aequs is well-positioned to capitalize on these opportunities and achieve its goal of becoming a $1 billion revenue company within the next five years.

Expanding Aerospace Capabilities

Aequs has long been a key player in India’s aerospace manufacturing sector, with a strong presence in the Belagavi Aerospace Cluster (BAC). This cluster, India’s first precision manufacturing Special Economic Zone (SEZ), offers an end-to-end manufacturing value stream, including forging, machining, surface treatment, and aero assemblies. The company’s existing capabilities have earned it partnerships with global aerospace giants like Airbus, Boeing, Collins, and Safran.

The new MRO facility is a natural extension of Aequs’s aerospace expertise. According to Aravind Melligeri, Chairman and CEO of Aequs, the facility will leverage the company’s existing strengths and synergies with Magellan Aerospace to deliver high-quality engine MRO services. “The Indian market has a significant gap in engine MRO capabilities, and we aim to bridge that gap,” Melligeri stated in a recent interview. The facility is expected to play a crucial role in supporting the growing demand for MRO services in India, which is projected to reach $4 billion by 2031.

In addition to the MRO facility, Aequs plans to expand its aerospace workforce by adding 300 to 400 employees in the current fiscal year. This expansion is part of the company’s broader strategy to increase its overall workforce by 1,000 employees by 2026. With a current workforce of 4,000, Aequs is committed to creating job opportunities and contributing to the local economy.

“The Indian market has a significant gap in engine MRO capabilities, and we aim to bridge that gap.” – Aravind Melligeri, Chairman and CEO of Aequs

Venturing into Consumer Electronics

While aerospace remains Aequs’s core focus, the company is also making strides in the consumer electronics sector. Precision manufacturing is one of Aequs’s key strengths, and the company is leveraging this expertise to explore opportunities in the growing market for smart rings and other consumer durables. “We are talking to some smart ring makers and see significant potential in this space,” Melligeri revealed.

Aequs’s foray into consumer electronics is part of its strategy to diversify its revenue streams and reduce its reliance on the aerospace sector. The company initially focused on the domestic market but is now shifting its attention to exports. With 60-70% of the value addition to its products happening within the SEZ, Aequs is well-equipped to meet the demands of international markets.

The company’s consumer electronics vertical is still in its early stages, but it holds immense potential for growth. As the global demand for precision-engineered consumer products continues to rise, Aequs is poised to emerge as a key player in this space.

Future Outlook and Strategic Goals

Aequs has laid out a comprehensive five-year roadmap to achieve its ambitious goals. The company aims to become a $1 billion revenue company by 2030, with the aerospace vertical contributing $500 million. This represents a significant increase from the current aerospace revenue of $100 million, which accounts for the majority of Aequs’s total revenue of $120 million.

To achieve these targets, Aequs is focusing on increasing both its revenue and value addition. The company’s aerospace business is already profitable, and the group as a whole is on a strong financial footing. While Aequs currently has sufficient funds to support its expansion plans, it is open to raising additional capital through rights issues if necessary.

Aequs’s strategic partnerships with Magellan Aerospace and France’s Aubert & Duval further strengthen its position in the global aerospace market. These collaborations enable the company to offer a wide range of services, from chemical processing and surface treatments to forgings and aerostructure assemblies. With its integrated ecosystem and commitment to innovation, Aequs is well-positioned to achieve its long-term goals and drive the growth of India’s aerospace and manufacturing sectors.

Conclusion

Aequs’s plans to set up an MRO facility and hire over 1,000 employees mark a significant milestone in the company’s journey. By expanding its aerospace capabilities and venturing into consumer electronics, Aequs is diversifying its revenue streams and positioning itself for long-term growth. The company’s focus on precision manufacturing and strategic partnerships underscores its commitment to delivering high-quality solutions to its customers.

As India’s aerospace industry continues to grow, Aequs’s contributions will play a crucial role in meeting the demand for MRO services and supporting the country’s expanding aircraft fleet. With a clear vision and a robust roadmap, Aequs is well on its way to becoming a $1 billion revenue company and a global leader in contract manufacturing.

FAQ

Question: What is Aequs’s core focus?
Answer: Aequs specializes in vertically integrated product solutions for the aerospace and consumer goods industries, with a strong emphasis on precision manufacturing.

Question: What are Aequs’s expansion plans?
Answer: Aequs plans to set up an MRO facility, expand its aerospace workforce, and venture into the consumer electronics sector, aiming to become a $1 billion revenue company by 2030.

Question: Who are Aequs’s key partners?
Answer: Aequs has strategic partnerships with Magellan Aerospace and France’s Aubert & Duval, enabling it to offer a wide range of aerospace manufacturing services.

Sources: Rediff Money Desk