On February 16, 2026, Bengaluru-based Aequs Limited signed a milestone Memorandum of Understanding (MoU) with Guidance, the nodal investment promotion agency of Tamil Nadu.
This strategic agreement outlines a long-term investment of ₹1,900 crore (with some broader group commitments reaching up to ₹4,000 crore) to establish India’s first fully vertically integrated manufacturing hub for high-complexity aerospace components.
Project Blueprint: The Shoolagiri Aerospace Hub
The facility is designed to anchor a new aerospace cluster in Western Tamil Nadu, leveraging the state’s existing precision engineering ecosystem.
- Location: Spread across a 250-acre site at the SIPCOT-Shoolagiri Industrial Park in Krishnagiri district.
- Specialization: Manufacturing of critical components for Aircraft Engines, Landing Gear, and advanced Gearbox systems.
- Investment Horizon: Up to ₹1,900 crore to be deployed over a period of ten years.
- Job Creation: The project is expected to generate approximately 7,000 high-quality jobs, focusing on specialized engineering and technical roles.
Strategic Rationale: Vertical Integration
Industries Minister TRB Rajaa described the project as a “game-changer” for Indian aviation manufacturing:
- End-to-End Ecosystem: The “fully vertically integrated” model means the facility will handle the entire value chain—from raw material processing and precision machining to surface treatment and final assembly—within a single cluster.
- Geographic Distribution: This moves high-technology aerospace manufacturing into the Krishnagiri-Hosur belt, reducing industrial concentration in Chennai and positioning the region as a new global aerospace center.
- State Support: The Government of Tamil Nadu has pledged comprehensive infrastructural support, including a “best-effort” guarantee for uninterrupted power supply and standard industrial incentives.
Economic Context (February 2026)
The Aequs signing was part of a broader ₹5,980 crore investment day for Tamil Nadu, which also saw Japanese electronics giant MinebeaMitsumi commit ₹1,980 crore for a semiconductor facility in Tiruvallur.
| Partner | Investment | Sector | Employment |
| Aequs Group | ₹4,000 Cr* | Aerospace (Engines/Gearboxes) | 7,000 Jobs |
| MinebeaMitsumi | ₹1,980 Cr | Semiconductors (IGBT/ICs) | 1,400 Jobs |
*Note: While the specific Aequs Ltd MoU covers ₹1,900 Cr, the total group commitment announced at the ceremony was ₹4,000 Cr.
“Say hello to India’s first Fully Vertically Integrated Aircraft Engine manufacturing project! This will anchor a domestic aero-engine ecosystem while strengthening Tamil Nadu’s participation in global supply chains.” — TRB Rajaa, Industries Minister, Tamil Nadu.
