 "A Rafale fighter jet flies over the factory of French aircraft manufacturer Dassault Aviation in Merignac near Bordeaux during a visit by the French President.")
Aequs, a Belagavi-based aerospace manufacturing firm, has acquired SiRA Group, a company that makes components for Rafale fighters built by Dassault Aviation and engine maker Safran as it expands its presence in Europe.
Aequs concluded the deal last week for an undisclosed sum after clearance from France's Defence Ministry as SiRA makes components for Rafale fighters, used by the French air force. SiRA has an annual revenue of $ 50 million. Business Standard had reported in August about Aequs plan to acquire an European company.
With SiRA, Aequs will get Safran and Rafale as new customers and a European presence for United Technologies Aircraft Systems. The firm has over 300 employees across five sites in Europe, specialising in aero engines, landing gear and aircraft actuation components. It has an annual contract of Euro 600,000 for supplying components for the Rafale fighters.
“These were skills we lacked and we also get access to two new customers," said Aravind Melligeri, chairman and chief executive of Aequs.
Aequs acquisition of SiRA will also help it be a local vendor in India for offsets purchase from Dassault Aviation, which has signed a deal to sell 36 Rafale fighters to New Delhi.
SiRA is the second acquisition for Aequs. In June, it acquired a Paris-based aerospace component maker T&K Machine Inc for $10 million (Rs 63 crore). T&K, renamed as Aequs Aero Machine makes components and systems for firms such as Spirit Aerosystems and Triumph Group, who are suppliers to Boeing.
Aequs has a manufacturing facility in Belagavi, in Northern Karnataka in a 250-acre special economic zone. It produces aerospace components and systems for global firms such as Airbus, Honeywell, Saab, Magellan and United Technologies. The factories, set up in 2009 with an investment of Rs 500 crore, employ over 1,000 people and make wing parts for Airbus 380 planes. Aequs earned revenue of $25 million in fiscal 2015 and expects to nearly double it to $45 million in the current fiscal.
Aequs is replicating a follow the sun model, pioneered by Indian IT services firms, offering global aerospace majors access to component and supplies from different regions with the same consistency in quality of end products. "For UTAS, now with Europe we are saying that we have redundancy built across regions and would deliver material without disruptions," said Melligeri.
Aequs is working on 2020 strategy to be large supplier of systems in critical segments such as castings, landing gear components, long bed machining and engine components to global aerospace firms.
