Page 19 - AAA JANUARY - FEBRUARY 2017 Online Magazine

INTERVIEW AEQUS

100,000 sq feet dedicated facility for Airbus How do you see the future of Aequs? happen in India as there is no inherent system
and its subsidiaries at our SEZ in Belgaum, We have a very clear path to get to US$300 or programme for it. There needs to be a
Karnataka. It is already running at 50 percent million in our aerospace business by 2020 framework for such incentives to be given to
capacity within a year and we are adding from the current US$100 million revenue. the aerospace industry. Low cost capital, will
more work as well. We believe that India brings best value allow us to expand far more aggressively and
when it comes to volumes and we are doing bring in newer technology, enabling us to take
Please elaborate on other customers and the volume game. Basically, we are looking a long-term view of the business.
plans? at replicating the services business for We put the largest hydraulic forging
At Aequs we do a lot of detailed parts from aerospace in India. Because this is when we press in the country as part of a US$20
titanium, aluminium, machining and some of deliver the best value to customers. We want million project for aerospace in our SEZ,
the sheet metal work for Airbus. We also have to be the largest detailed parts supplier in with our French JV partner. After such a large
aerostructure assembly in India, through our the world and this will be at the core of all investment, we are only now getting the first
Joint Venture (JV) with Saab Aerospace and our business growth plans. Our core focus is revenue drips, six years after we started
we currently producing the A380 fixed leading precision machining. I have one million hours the project in 2010. The interest costs are
edge assembly at this facility, for which we of machining capacity today, this will rise to high and the project will take approximately
are the sole source supplier. We expect more four million by 2020. five years to reach an operating break-even.
orders for this facility and are already winning We are doing these investments as we are
additional orders for assemblies. We are What needs to be done to further passionate about building our manufacturing
also working on the forging side with Airbus incentivise the growth of aerospace ecosystem here in India and we are taking a
for getting some forged machine products. manufacturing in India? very long term view of the market. But are
Airbus is a prime customer in the sense that I don’t see ‘Make in India’ making much there another 10 more companies willing to
they can take advantage of all the facilities of a difference on the ground, while the do this? I don’t think so.
we have, such as assembly work, forging government is trying to improve the ease Skilled workforce is something that
machining work or just machining work. We of doing business in India, the reality of the is always going to be a barrier especially
have a number of companies that are talking situation is, that in a manufacturing business, for manufacturing and when we say ‘Make
to us to make use of our facilities, we already access to capital is the most important thing. in India’. There must be an incentive to
work with Spirit Aerosystems from our U.S. We need low cost capital and government develop skills and I don’t see that right now
facility, Safran from our French facility. We support on long-term projects is paramount as a benefit to the companies directly. We
supply to UTC Aerospace Systems (UTAS) for an industry like aerospace. I just don’t have training programmes and we train our
from all our locations. see a conscious effort being taken for this to personnel.
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