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Time of India
3 days ago
- Business
- Time of India
Aequs files confidential DRHP to raise Rs 1700 crore
(You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Belagavi-headquartered diversified contract manufacturer Aequs has filed a confidential draft RHP with SEBI with plans to raise $ 200 million (Rs 1700 crore) through an initial public offering (IPO), sources briefed on the matter promoted by US-based Hubballi-born entrepreneur Aravind Melligeri , operates a manufacturing SEZ in Belagavi, a large toy cluster at Koppal, and a consumer durable good cluster in Hubballi with manufacturing operations also in Texas (US) and Cholet (France). Melligeri is also the co-founder of QuEST Global Engineering. Aequs along with Tata Electronics, Motherson Group & Jabil produce mechanical components for Apple IPO, sources said, will consist of both fresh issue of equity shares and offer for sale by existing stakeholders. Aequs counts Amicus Capital, Amansa Capital, Steadview Capital, Catamaran, Sparta Group and Hubballi-born US-based entrepreneur Gururaj Deshpande as its did not respond to an email seeking its comments.
Economic Times
3 days ago
- Business
- Economic Times
Aequs files confidential DRHP to raise Rs 1700 crore
Belagavi-headquartered diversified contract manufacturer Aequs has filed a confidential draft RHP with SEBI with plans to raise $ 200 million (Rs 1700 crore) through an initial public offering (IPO), sources briefed on the matter said. ADVERTISEMENT Aequs, promoted by US-based Hubballi-born entrepreneur Aravind Melligeri, operates a manufacturing SEZ in Belagavi, a large toy cluster at Koppal, and a consumer durable good cluster in Hubballi with manufacturing operations also in Texas (US) and Cholet (France). Melligeri is also the co-founder of QuEST Global Engineering. Aequs along with Tata Electronics, Motherson Group & Jabil produce mechanical components for Apple products. The IPO, sources said, will consist of both fresh issue of equity shares and offer for sale by existing stakeholders. Aequs counts Amicus Capital, Amansa Capital, Steadview Capital, Catamaran, Sparta Group and Hubballi-born US-based entrepreneur Gururaj Deshpande as its investors. Aequs did not respond to an email seeking its comments. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
27-05-2025
- Business
- Time of India
India's first privately-led helicopter manufacturing unit by Tata-Airbus to come up in Karnataka; to make Airbus' 'best-selling' H125 chopper
Airbus, the European aviation giant, and Tata Advanced Systems (TASL), the aerospace division of the Tata group, are looking to establish a Final Assembly Line (FAL) for H125 helicopters in Kolar, Karnataka. Tired of too many ads? go ad free now The facility will manufacture Airbus' popular H125 civil helicopter for Indian and regional markets, becoming the fourth such installation globally after those in France, US and Brazil. Initially producing 10 helicopters annually, the facility will expand operations based on Airbus' forecast of 500 light H125-class helicopters being required in the region over the next two decades. This is India's first private-sector helicopter assembly facility, strengthening the government's Make in India initiative, which aims to achieve self-sufficiency in aerospace manufacturing. Sources told ET that the facility will be located in the Vemgal Industrial area, approximately two hours from Bengaluru, where TASL already operates other facilities, including a satellite manufacturing unit. Airbus-Tata helicopter plans Karnataka secured the aircraft manufacturing project over Anantapur, Andhra Pradesh (known for its Kia Motors facility) due to its robust ancillary support ecosystem and existing TASL presence. TASL has acquired 740,000 square feet in Karnataka's Vemgal Industrial Area to establish aircraft manufacturing, final assembly, and MRO facilities. "The locations were apprised based on their logistics facility, expansion potential, availability of skilled workforce and promises of the state government like fast track approval of permissions," said a project insider. Also Read | The state's aerospace and defence policy offers land subsidies, capital investment support, stamp duty benefits, electricity charge incentives, and production-linked benefits of 1% annual turnover for five years. Tired of too many ads? go ad free now "This will not only strengthen indigenous manufacturing capabilities but also act as a catalyst for developing advanced industrial clusters," commented Aravind Melligeri, executive chairman & CEO, Aequs, an aerospace manufacturer supplying to Airbus. "Initiatives like this drive skill development, attract supply chain investments, and create high-value employment, accelerating the transformation of India into a globally competitive and strategic node in global aerospace manufacturing," Tata and Airbus are establishing a C295 aircraft assembly line in Vadodara, Gujarat. The state has attracted significant investments, including semiconductor plants and the international diamond bourse, prompting opposition leaders to suggest preferential treatment from the central government.
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Business Standard
12-05-2025
- Automotive
- Business Standard
Aequs working to become part of Apple's global supply chain from India
It manufactures and supplies components and systems (as many as 5,000-odd parts) to global aerospace majors ranging from Boeing, Airbus, Spirit, Collins and Honeywell to SAAB, apart from other Tier-I players. And it does so through its factories located in India's Karnataka, Paris and Cholet in France, and Houston in the US. And sources say that it is also working closely with Apple Inc for possibly becoming part of its global supply chain from India. But the over ₹1,000 crore Bangalore-based contract manufacturer Aequs, which a few year ago raised private equity (PE) of $51 million from marquee investors like Amicus Capital, Catamaran, and Sparta amongst others, is now expanding its horizon from aerospace and toys, and is all set to enter the consumer electronics space. Leveraging the recently announced production-linked incentive (PLI) scheme for electronic components, the company is investing $100 million to enter into mechanics, where there are already other players like Tata Electronics, which makes enclosures for Apple iPhones, and Dixon, which has publicly announced it is interested in this space. Aequs Chairman Aravind Melligeri says: 'Currently, 85-90 per cent of our revenues come from aerospace; toys is very small. Our aim is to move to a balance between aerospace and consumer electronics business. We will be applying and believe will be qualified in the PLI. And we already have two clients in this space.' Melligeri concedes that it is a capital-intensive business, and the country faces numerous disabilities like the high cost of capital and problems in getting raw materials. He, however, sees these issues getting resolved because of the financial incentives under the PLI scheme, and he expects a capital-to-revenue ratio of 1:2. He points out that it is a large market accounting for 10 per cent of the bill of material in consumer electronics, so demand is not a constraint, especially as their focus is on the global market, like in aerospace. In aerospace, says Melligeri, as much as 99.5 per cent of the components are exported out. And they make critical parts like the pylon system, which includes hundreds of components that hold the engine to the wheels, the over-wing emergency doors for the Airbus A321, its door plugs, and 40 per cent of the front nose landing gear's main fittings in France for Airbus planes. Melligeri says the market where they operate in the mettalics space accounts for 50-60 per cent of the cost of the aircraft bill of materials, so the scope for them is very big. But he points out: 'India only has a 2 per cent share of the global aerospace sourcing opportunity currently. However, it has a disproportionate share of around 10 per cent of the total global orders for planes. What we are aiming at is to get a similar proportionate share of the sourcing market too,' Sure, India is more competitive than countries in Southeast Asia like Malaysia and Thailand in aerospace sourcing. But the big challenge is that the West does not have capacity to make more parts and that is because shortage of engineering talent. The key concern for OEMs (original equipment manufacturers) is service: on time delivery and zero defect. Says Melligeri: 'That is the bigger problem, as turnaround has to be quick. They don't have capacity. We are uniquely positioned as a country to bring in unlimited engineering capacity on board. While our biggest challenge was the cost of capital historically, that also has been addressed in a way with the global cost of capital going up.' In the toy business, Aequs says it is getting more and more queries from the top five-six global players, that are now controlling bulk of the manufacturing in China after the US hit punitive 145 per cent duties on Beijing. Talks are already on as they look to shift to India, which has the lowest labour cost compared to Indonesia and Vietnam.
The Hindu
10-05-2025
- Business
- The Hindu
Amidst tariff war, Aequs to help in global supply chain efficiency
The tariff war may have disrupted global supply chains but Aequs, a Karnataka-based company, which is into manufacturing of high-precision aerospace and consumer durables exports, said it was helping in improving supply chain efficiency for its global customers. 'By leveraging its manufacturing ecosystems, Aequs reliably delivers supply chain efficiencies to its global customer base,' said Aravind Melligeri, executive chairman and CEO, Aequs. A first-generation promoter, Mr. Melligeri had returned from the U.S. and incubated Aequs into a diversified export-focused manufacturing platform, providing vertically integrated high precision engineering and product solutions for the aerospace and consumer industries. Its customers include Airbus, Boeing, Safran, Dassault, Collins Aerospace, Eaton, Honeywell, SAAB and GKN Aerospace. The company has India's first integrated treatment facility to be approved by Airbus and Boeing. Aequs is said to be planning an Initial Public Issue (IPO) of about ₹1,750 crore. The Aequs Group has built over 3 million sq. ft of infrastructure for global exports in North Kanara. In 2008, it built India's first Aerospace industrial park in Belgavi spread over 250 acres. In 2016, it built India's first global scale toy manufacturing cluster at Koppal. In 2022, it built India's first consumer durables and electronics manufacturing cluster at Hubbali supplemented by an integrated electronics components manufacturing in 2023. 'Aequs offers a unique plug-and-play proposition, which provide manufacturers with the shortest plan-to-commercial gestation ever,' said Mr. Melligeri, who holds a Masters in Mechanical Engineering from Pennsylvania State University. It has already attracted investors such as Amicus Capital, Amansa Capital, Steadview Capital, Catamaran, Sparta Group and the investment office of Desh Deshpande among others. The company's total operating income improved from ₹552 crore in FY20 to ₹969 crore in FY24 backed by healthy order book position in aerospace segment according to Care Edge.
