Aequs lays foundation stone of new automotive components plant

Precision manufacturing firm Aequs (formerly QuEST Global manufacturing) laid the foundation stone of a new automotive components plant today at its 250- acre Special Economic Zone in Belgaum to support its expansion plans in the US and European markets.
The plant which will roll out engine and transmission parts, sub-assemblies, assemblies as well as add machining capacity of over 100,000 hours annually, is expected to be operational from March 2015, a release said.
Aequs specialises in precision machining, sheetmetal fabrication, assembly, forging, and special processing for aerospace, automotive, and oil and gas industries.
"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 optimisation for manufacturers.

"With the new plant and our continued expansion plans in this vertical, we are looking to garner significant share of this market opportunity," Aequs Chairman and Chief Executive Aravind Melligeri said in the release.
India's precision engineering exports are expected to more than triple at USD 40 billion from the current USD 12 billion, he said.

Aequs aims to increase its revenues from the automotive business to USD 30 million by 2020, the company said, adding that it is scouting to establish joint ventures to add to its capabilities in this vertical.
"The JV approach to manufacturing will enable us to offer top quality ancillaries and sub-assemblies to global customers at a very competitive prices as we can access latest world class technologies through our collaborations," Melligeri said.

Integration of automotive manufacturing facilities at the Aequs SEZ would also enable it to benefit from central and state government incentives such as tax holiday on corporate income for 15 years, VAT, and stamp duty exemption and shared services turnkey support, among others, the release said.
Aequs's automotive customers include global majors such as Bosch, Jacobs Vehicle Systems and Bosch Rexroth.