Aequs, a leading contract manufacturer specializing in aerospace and precision consumer goods, is poised for significant growth with plans to establish a Maintenance, Repair, and Overhaul (MRO) facility this year. According to Chairman and CEO Aravind Melligeri, the company is also preparing to expand its workforce by 1,000 people by March 2026 to support its ambitious growth strategy.
Strengthening Aerospace and Consumer Manufacturing
Aequs, which currently generates $120 million in annual revenue, aims to bolster its capabilities in both the aerospace and precision consumer electronics sectors. The new MRO facility, to be developed in collaboration with Canada’s Magellan Aerospace Corporation, will initially focus on servicing turboprop engines and marks a key step in diversifying its portfolio.
Additionally, the company plans to grow its footprint in precision consumer electronics, with an emphasis on expanding exports in consumer durables. Melligeri noted that Aequs is actively engaging with smart ring makers, signaling its move into emerging tech-driven markets.
Aerospace Sector Expansion
With high-profile clients such as Airbus, Boeing, Collins, and Safran, Aequs’ aerospace vertical remains a significant contributor to its revenues, accounting for $100 million out of the total $120 million in FY24. The company operates a Special Economic Zone (SEZ) in Belagavi, Karnataka, the first notified precision engineering SEZ in India.
The SEZ provides end-to-end manufacturing capabilities, including forging, machining, surface treatments, and aero assemblies, enabling 60-70% of product value addition within the facility.
Melligeri outlined ambitious plans to grow the aerospace vertical’s revenue to $500 million over the next five years, contributing to the company’s broader goal of achieving $1 billion in total revenue by 2030.
Strategic Partnerships and Ventures
Aequs has built strong joint ventures to support its growth:
- Aerospace Processing India Pvt Ltd (API): A partnership with Magellan Aerospace offering chemical processing and surface treatments.
- SQuAD Forge: A joint venture with France’s Aubert & Duval, producing forgings from materials such as aluminum, titanium, and superalloys.
- Aerostructures Assemblies India (AAI): Produces small to medium sub-assemblies like structural panels and fuselage doors for commercial aircraft, including the Plug-door and Over Wing Exit Door (OWD) assemblies for Airbus A321 neo planes.
Manpower and Funding Plans
Aequs currently employs around 4,000 people, with plans to add 300-400 staff in FY25 and an additional 1,000 employees by FY26. The company has sufficient funding to support these initiatives but may explore rights issues if needed for future expansions.
Driving India’s Aerospace Manufacturing Goals
With its focus on precision manufacturing, strategic partnerships, and investment in cutting-edge facilities, Aequs is well-positioned to play a crucial role in India’s rise as a global manufacturing hub. Its commitment to growing the aerospace vertical and diversifying into high-value consumer electronics reflects a bold vision for sustained growth and innovation.