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Aequs Pvt. Ltd, a aerospace parts maker, on Monday opened a facility in Karnataka’s Belgavi district to supply components to France’s Airbus Group.
Aequs said it will invest $50 million in the aerospace component manufacturing facility over the next five years. The facility will generate a revenue of $75 million a year.
The aerospace manufacturing facility was inaugurated on Monday by defence minister Manohar Parrikar. Situated on the 250-acre Aequs Special Economic Zone (SEZ), the facility is dubbed as the country’s largest aerospace machining centre for Airbus Group.
The facility will generate employment for over 1,000 skilled professionals during the period in five years, said Aravind Melligeri, chairman and chief executive officer of Aequs.
“The biggest chunk of ‘Make in India’ can come from defence. There is a distant possibility of making $8-10 billion products per year from India for the next five years, if some of the deals in the pipeline go through,” said Parrikar.
“With the revised offset policy, both Indian and foreign investors will benefit from technology transfer opportunities as well as the ability to form joint ventures in support of India defence procurement projects,” he said.
Offsets refers to a policy that requires any foreign arms maker securing an order worth more than Rs.300 crore from India to source components worth 30% of the value of the order from India.
The offsets opportunity is expected to be worth $15 billion within the next 10-15 years, assuming that several proposed purchases are completed on time, according to KPMG.
Oliver Cauquil, senior vice-president, material and parts procurement, Airbus, said that the shift in the aviation market from the west to the east is a tremendous opportunity for aerospace companies in India to grow.
“Over the next five years Airbus’s cumulative sourcing volume in India is $2 billion, which is roughly an average of $400 million per year,” said Airbus India managing director Srinivasan Dwarakanath.
India was set to see a defence budget allocation of $620 billion between fiscal 2014 and fiscal 2022, of which 50% will be capital expenditure, according to a February report released by the Federation of Indian Chambers of Commerce and Industry, an industry group, and financial services firm Centrum Capital Ltd.
Aequs plans to invest $50 mn in new plant - Livemint
Employment for over 1,000 skilled professionals with a mere $50mm dollar investment, we'll take that.
Aequs said it will invest $50 million in the aerospace component manufacturing facility over the next five years. The facility will generate a revenue of $75 million a year.
The aerospace manufacturing facility was inaugurated on Monday by defence minister Manohar Parrikar. Situated on the 250-acre Aequs Special Economic Zone (SEZ), the facility is dubbed as the country’s largest aerospace machining centre for Airbus Group.
The facility will generate employment for over 1,000 skilled professionals during the period in five years, said Aravind Melligeri, chairman and chief executive officer of Aequs.
“The biggest chunk of ‘Make in India’ can come from defence. There is a distant possibility of making $8-10 billion products per year from India for the next five years, if some of the deals in the pipeline go through,” said Parrikar.
“With the revised offset policy, both Indian and foreign investors will benefit from technology transfer opportunities as well as the ability to form joint ventures in support of India defence procurement projects,” he said.
Offsets refers to a policy that requires any foreign arms maker securing an order worth more than Rs.300 crore from India to source components worth 30% of the value of the order from India.
The offsets opportunity is expected to be worth $15 billion within the next 10-15 years, assuming that several proposed purchases are completed on time, according to KPMG.
Oliver Cauquil, senior vice-president, material and parts procurement, Airbus, said that the shift in the aviation market from the west to the east is a tremendous opportunity for aerospace companies in India to grow.
“Over the next five years Airbus’s cumulative sourcing volume in India is $2 billion, which is roughly an average of $400 million per year,” said Airbus India managing director Srinivasan Dwarakanath.
India was set to see a defence budget allocation of $620 billion between fiscal 2014 and fiscal 2022, of which 50% will be capital expenditure, according to a February report released by the Federation of Indian Chambers of Commerce and Industry, an industry group, and financial services firm Centrum Capital Ltd.
Aequs plans to invest $50 mn in new plant - Livemint
Employment for over 1,000 skilled professionals with a mere $50mm dollar investment, we'll take that.
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