Aequs to spend $100 million on expansion in India, overseas
November 2nd, 2014
Publication: The Hindu – Business Line
Mumbai: Precision manufacturing company Aequs will invest about $100 million (around ₹600 crore) in India and overseas by 2020 to add new capabilities, expand its geographical reach and scale up revenue, according to a top official.
The Karnataka-based company, which was formerly known as QuEST Global Manufacturing, will fund its capital expenditure programme through a mix of promoter’s equity (50 per cent) and debt (50 per cent), Aravind Melligeri, Chairman and Chief Executive of Aequs, told BusinessLine in a telephonic conversation.
Aequs specialises in precision machining, sheet metal fabrication, assembly, forging, and special processing. Its clients include marquee names such as Airbus, Saab, Bosch and others. Melligeri said Aequs is on track to clock $30 million in revenue this fiscal, from $16 million last year. By 2020, Aequs is targeting a revenue of $200 million by strengthening its presence in aerospace, automation and oil and gas verticals.
“I know that our 2020 revenue target is an aggressive one, but in this industry, the biggest challenge is to generate the first $30 million in revenue. In the last five years, we have built the necessary infrastructure and currently, we have reached a stage where there is strong momentum across verticals,” said Melligeri.
Within India, Aequs is keen to extend its range. “Today, we are doing forging, but we also wish to do sand casting and investment casting. We are also keen to bring in capabilities for manufacturing of aero engine components,” said Melligeri.
The company currently has presence in Bangalore, Belgaum and Houston (US). It is also drawing up plans to set up a facility in France, which is home to Airbus.
Aequs has joint venture partnerships with Magellan Aerospace of Canada, Setforge and Aubert & Duval of France, and Saab of Sweden.
QuEST Global, a product development and engineering services firm, had in March spun off its group companies QuEST Global Manufacturing and QuEST Global SEZ and rebranded them as Aequs. The endeavour was to bring in sharper focus on manufacturing.