Contract manufacturing giant Aequs is set to bolster its aerospace manufacturing capabilities, expand its footprint in the consumer segment, and establish a Maintenance, Repair, and Overhaul (MRO) facility in partnership with Canada’s Magellan Aerospace Corporation. This ambitious roadmap, coupled with plans to add 1,000 employees by March 2026, signals the company’s bullish stance on growth opportunities.
Chairman and CEO Aravind Melligeri shared that the company, with annual revenues of approximately USD 120 million, is targeting significant growth across sectors. In the aerospace domain, key customers include Airbus, Boeing, Collins, and Safran. The upcoming MRO facility, set to commence operations in 2025, will initially focus on turboprop engine repairs.
Melligeri also highlighted Aequs’ move into precision consumer electronics, particularly in the growing market for products like smart rings. While initially focusing on the domestic market for consumer durables, the company is now pivoting toward exports.
Operating India’s first notified precision engineering Special Economic Zone (SEZ) in Belagavi, Karnataka, Aequs offers a comprehensive manufacturing value chain that includes forging, machining, surface treatment, and aero assemblies. Notably, 60-70% of the value addition for its products occurs within the SEZ, underscoring its role as a cornerstone of Aequs’ operations.
In FY 2023-24, the aerospace segment alone generated USD 100 million, accounting for the bulk of Aequs’ revenues. Melligeri outlined a five-year plan aiming for USD 1 billion in revenues, with USD 500 million targeted from the aerospace vertical. To meet these goals, Aequs plans to add 300-400 employees this fiscal to its aerospace division, which currently employs 1,800 people.
The company also manages several joint ventures that enhance its manufacturing capabilities. These include Aerospace Processing India Pvt Ltd (API), which specializes in chemical processing and surface treatments; SQuAD Forge, a partnership with France’s Aubert & Duval for producing forgings from advanced materials; and Aerostructures Assemblies India (AAI), which manufactures components like Airbus A321neo plug doors and over-wing exit door assemblies.
Despite its aggressive expansion plans, Melligeri affirmed that Aequs remains financially secure, with sufficient funds to support its initiatives. If needed, the company may explore raising capital through a rights issue.
With its strong foundation in precision manufacturing and a clear roadmap, Aequs is poised to scale new heights, aiming to be a USD 1 billion manufacturing powerhouse within five years.