Lays foundation for new plant at Aequs SEZ to strengthen its unique ‘manufacturing ecosystem’ model
Chennai,July 3,2014: Aequs, among India’s fastest growing precision manufacturing companies, today laid the foundation for a new state-of-art automotive components plant at its 250 acre Aequs SEZ in Belgaum. The new automotive plant will add machining capacity of over 100,000 hours annually and will support the company’s rapid expansion plans in the US and Europe markets this year. Aequs aims to increase its revenues from the automotive business to US$ 30 million by 2020 and is scouting to establish joint ventures to add to its capabilities in this vertical.
The new plant, which is expected to be operational from March 2015, will further strengthen Aequs’ emergence in the last few years as among the few Indian companies in the automotive component manufacturing space to provide a ‘manufacturing ecosystem model’, wherein the same products are manufactured in Indian and overseas locations to offer superior business continuity and risk mitigation to customers. Aequs will manufacture engine and transmission parts, sub-assemblies and assemblies in the new plant.
“With India having emerged as a major auto component procurement hub for global OEM players, there is a rising thrust on technology innovation and cost optimization for manufacturers. Most leading auto manufacturers of the world outsource their component manufacturing to India and by 2020, India’s exports from this industry is expected to reach US$40 billion, from the current US$12 billion. With the new plant and our continued expansion plans in this vertical, we are looking to garner significant share of this market opportunity”, said Aravind Melligeri, Chairman and CEO, Aequs.
“The JV approach to manufacturing will enable us to offer top quality ancillaries and sub-assemblies to global customers at a very competitive price as we can access the latest world-class technologies through our collaborations”, Melligeri added.
The integration of the automotive manufacturing facility into Aequs SEZ also enables the company to take advantage of central and state government incentives such as tax holiday on corporate income for 15 years, VAT, and stamp duty exemption besides shared services turnkey support and access to grid outages among others.
Aequs’s automotive customers include global majors such as Bosch, Jacobs Vehicle Systems and Bosch Rexroth. It is one of the preferred partners for Bosch in India and has provided zero defect delivery to the auto major for over six years now.