1 day ago
Aequs Bets on Hosur Plant for Next Growth Phase
Aequs makes important parts for airplanes.
It is building a new factory in Hosur, Tamil Nadu.
The factory will make parts for airplane engines and landing systems.
These parts are harder to produce than many of the company’s current products.
Aequs expects the factory to begin operating in the second half of FY27-28.
It expects the plant to start earning revenue in FY29.
The company believes engine repairs and replacement landing-gear parts can provide regular business.
Aequs also has a long-term contract to make wheels for Airbus A320 aircraft.
It hopes to grow its revenue four to six times by FY31.
Aequs plans to operationalise its first Hosur plant in the second half of FY27-28, with revenue expected from FY29.
The ₹1,900-crore facility will produce aero-engine and complex landing-system components using metal superalloys such as Inconel.
Aequs expects engine overhauls and replacement landing-gear components to generate recurring aftermarket demand.
The company signed a 15-year Safran contract for fully integrated Airbus A320 aircraft wheels as its order book exceeded $1 billion in Q1 FY27.
Aequs is targeting four- to sixfold revenue growth by FY31 and an 18–22% EBITDA margin, after reporting approximately ₹1,230 crore revenue in FY26.
- Who
- Aequs Limited, led by Executive Chairman and Chief Executive Officer Aravind Melligeri.
- What
- Aequs is developing a ₹1,900-crore Hosur manufacturing plant for aero-engine and complex landing-system components.
- Where
- Hosur, Tamil Nadu, alongside Aequs’s existing manufacturing operations in Belagavi and Hubballi.
- When
- The first Hosur plant is planned to become operational in the second half of FY27-28, with revenue expected from FY29.
- Why
- The company aims to expand into higher-value components and benefit from Hosur’s aerospace manufacturing ecosystem and recurring aftermarket demand.
Key facts
- Hosur investment
- ₹1,900 crore
- Planned operations
- Second half of FY27-28
- Expected revenue start
- FY29
- FY26 revenue
- Approximately ₹1,230 crore
- FY31 growth target
- Four- to sixfold revenue growth
- EBITDA margin target
- 18–22%
- Safran contract
- 15 years for fully integrated Airbus A320 aircraft wheels
Quotes
Aravind Melligeri
Executive Chairman and Chief Executive Officer of Aequs Ltd
“80% of the production of the wheels today go towards the aftermarket. Only 20% goes towards OEM. That means, more aircraft out there, more demand will continue to happen,”
financialexpress.com
“Aircraft engines require complete overhauls every 10,000 to 12,000 hours.”
financialexpress.com
Sources
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