Leading aerospace precision engineering firm Aequs would invest Rs 500 crore to set up a dedicated manufacturing facility at Tuem in Goa for the Indian defence sector, said a top company official here on Thursday.
"Our new facility will make high-end components and systems for the Indian defence industry and support the government's 'Make in India' initiative," said Aequs Chief Executive Officer Aravind Melligeri at the Aero India 2017 expo here.
As a tier-1 supplier of aerospace components to Indian and global majors, Aequs has a $100 million (Rs.667 crore) machining facility in its 250-acre Special Economic Zone (SEZ) at Belagavi, about 500 km away from here.
The Belagavi facility makes titanium machined parts for the A-320 new engine programme of the global aerospace major Airbus SAS.
The new facility will be built by February 2019 in Goa's industrial cluster, about 30 km from Panaji, where the Goa government has given the company 50 acres of land on lease at a minimum cost.
"The facility will have multi-capability with CNC (Computer Numeric Control) machines and new age technology to design and make precision components for the Indian defence firms," Melligeri told IANS.
The company plans to hire about 2,000 engineers for the facility and hopes to get technology transfers from global aerospace majors.
"We will also support the government's 'Skill India' initiative to enhance the skills of our engineers in precision manufacturing and new-age technologies," noted Melligeri.
As the Indian defence sector is import-dependent for products and technologies, the new facility is aimed at increasing the local content and minimising imports.
"The company's new facility will provide impetus to our defence sector and promote the government's 'Make in India' programme," said IT Secretary and Director Ameya Abhyankar on the occasion.
Foraying into defence manufacturing in 2013, the eight-year-old company has been working with the state-run Hindustan Aeronautics Ltd (HAL) on machined structural parts for its various platforms, including the Light Combat Aircraft (LCA) Tejas, Sukhoi-30MKI fighter and Advance Light Helicopter (ALH).
"Our Goa facility will manufacture high-end aerospace and defence equipment to reduce import costs and add in-country value to the sector," added Melligeri.
The company's SEZ unit at Belagavi has facilities for fabrication, machining, treatment, assemblies and warehousing for production value chain.
Besides Airbus, the company's global customers include UTAS, Bosch, Eaton, Baker Hughes and Halliburton, among others.
The company is showcasing its products and technologies at the 11th edition of the five-day biennial expo at the Yelahanka base of the Indian Air Force (IAF).
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)