This article is based on an official press release from JJG Aero.

JJG Aero Secures $30 Million in Series B Funding to Expand Manufacturing Capabilities

Bengaluru-based aerospace manufacturing firm JJG Aero has successfully raised $30 million (approximately ₹250 Crore) in a Series B funding round led by Norwest Venture Partners. This investment marks a significant milestone for the company, bringing its total capital raised to $42 million following a $12 million Series A round led by CX Partners in April 2024.

According to the company’s press release, the fresh capital will be utilized to expand manufacturing capacity, specifically through the establishment of a new facility in North Bengaluru. The funding round also represents Norwest Venture Partners’ first foray into the Indian aerospace manufacturing sector, signaling growing investor confidence in India’s potential as a global hub for high-precision aerospace components.

Strategic Expansion and Vertical Integration

JJG Aero plans to deploy the newly raised funds primarily toward a ₹500 Crore capacity expansion plan. A central component of this strategy is the construction of a new 200,000-square-foot manufacturing plant located on a 10-acre site near the Bengaluru airport. The company expects this facility to be fully operational by mid-to-late 2027.

In addition to increasing physical space, the company intends to deepen its vertical integration. By bringing more “special processes”, such as electroplating, anodizing, painting, and Non-Destructive Testing (NDT), in-house, JJG Aero aims to reduce reliance on external vendors. This shift is designed to improve quality control and accelerate delivery timelines for its global client base, which includes major OEMs and Tier-1 suppliers like Boeing, Collins Aerospace, Safran, and GE Aerospace.

Anuj Jhunjhunwala, CEO of JJG Aero, highlighted the market dynamics driving this expansion in a statement included in the release:

“The aerospace supply chain is facing an all-time high demand from aircraft manufacturers, which legacy vendors in the Western world are struggling to meet. With our strengths… we see ourselves as a key player for precision-machined components in the aerospace ecosystem.”

Financial Performance and Future Targets

Founded in 2008, JJG Aero has established itself as a manufacturer of high-precision machined components for commercial aircraft engines and systems. The company reports a Compound Annual Growth Rate (CAGR) of 35% over the last three years. For the current fiscal year, JJG Aero projects revenue of approximately ₹240 Crore, with the aerospace segment contributing roughly ₹160 Crore.

Looking ahead, the company has set ambitious financial targets. Management aims to reach ₹500 Crore in revenue by the 2028-29 fiscal year and ₹1,000 Crore by FY32-33. The company is reportedly profitable, a status that likely contributed to its ability to secure significant venture capital in a competitive market.

Shiv Chaudhary, Managing Director at Norwest Venture Partners, explained the firm’s investment thesis:

“With strong industry tailwinds, we believe that aero-parts and component manufacturing is emerging as an important segment in India’s manufacturing outsourcing story. This investment will enable JJG Aero not only to continue its growth trajectory through capacity addition but also to upgrade the quality of earnings by focusing on higher value-added components.”

AirPro News Analysis: The “China+1” Opportunity

The investment in JJG Aero underscores a broader shift in the global aerospace supply chain known as the “China+1” strategy. As Western OEMs seek to de-risk their operations and reduce dependence on Chinese manufacturing, India is increasingly viewed as a viable alternative for high-quality, cost-effective production. The sector is currently growing at approximately 10% annually in India.

Furthermore, recent policy changes may provide additional tailwinds for manufacturers like JJG Aero. The Union Budget 2026-27 proposed the removal of basic customs duties on components required for aircraft manufacturing. This policy adjustment is expected to lower input costs for Indian manufacturers, enhancing their competitiveness on the global stage against established players and emerging domestic competitors such as Jeh Aerospace and Aequs.

By securing this capital now, JJG Aero positions itself to capitalize on the supply constraints currently hampering Western legacy vendors, potentially capturing a larger share of the outsourcing market as global aircraft production rates ramp up.

Sources

• PR Newswire