TEAL Eyes Expansion of Aerospace Manufacturing Footprint.

Since its inception in the early 1990s, TEAL (Titan Engineering and Automation Limited) has carved a formidable niche in automation and precision manufacturing. Building on its legacy, the company is now looking to expand its aerospace components and sub-assemblies manufacturing operations in response to a growing aerospace market in India and globally.

Expansion Plans

  • Facility: TEAL plans to expand its aerospace manufacturing shop floor at its Hosur facility.
  • Investment: Over ₹400 crore will be invested in the next 4-5 years across its verticals, including aerospace components, automation, and precision manufacturing.
  • Infrastructure: Expansion will include the addition of over 80 imported CNC (Computer Numerical Control) machines at its 1,20,000 sq. ft. ‘Unit 2’ shop floor in Hosur.

Capabilities and Market Reach

  • TEAL specializes in precision manufacturing for engine accessories, landing systems, and actuation controls, producing 800-1,000 components annually.
  • It serves as a Tier-I supplier to aircraft parts manufacturers and a Tier-II supplier to aircraft manufacturers.
  • Notable clients include Pratt & Whitney, Raytheon, and HAL, with components featured in IndiGo’s aircraft engines, Air India flights, and HAL’s light helicopter engines.

Strategic Growth

  • TEAL has worked with 13 strategic clients in the aerospace industry and aims to move up the value chain.
  • The company is targeting deeper penetration into North American and European markets, focusing on exports, which already contribute 50% of its revenue.

Broader Ambitions

Beyond aerospace, TEAL is actively diversifying into:

  • Automation Solutions: Modular assembly lines for industries, particularly the EV segment.
  • Semiconductor Sector: Wafer fab equipment for semiconductor manufacturing.
  • Emerging Sectors: Exploring opportunities in electronics, solar, and electrification solutions.

Industry Context

  • Market Outlook: The Indian aerospace parts manufacturing market, valued at $13.6 billion in 2023, is projected to grow at a 6.8% CAGR from 2024 to 2030, driven by increasing air travel demand and fleet expansion.
  • Opportunities: India’s growing aerospace sector provides opportunities to build robust local supply chains for domestic and international markets.

Financial Performance

  • Revenue: TEAL reported ₹761 crore in revenue for FY24 and is targeting ₹900 crore in FY25.
  • Focus Areas: Increased capital expenditure in automation, semiconductors, and aerospace sectors to drive growth.

Conclusion

TEAL’s expansion in aerospace manufacturing, combined with its diversification into high-growth sectors, positions the company as a key player in India’s industrial landscape. With its focus on precision, innovation, and global market penetration, TEAL is poised for sustained growth and success in the coming years.

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