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Home arrow News arrow Aerospace arrow Maini Global Aerospace chalks out $35-40 million capex for next 5 years
Maini Global Aerospace chalks out $35-40 million capex for next 5 years Print E-mail
Written by Arjun   
Thursday, 03 February 2011
Bangalore: Maini Global Aerospace (MGA), a wholly owned subsidiary of the Maini group, has chalked out an investment of US $35 to 40 million over the next 5 years to scale up infrastructure & capacity and to widen it's product and service offerings.

"By 2015, our target is to have a turnover of Rs 215 crores and we have a detailed investment plan for this. We will invest US $35 to 40 million in the next 5 years," said Naresh Palta, CEO, Maini Global Aerospace. This will most likely be funded by internal accruals. "In the last one year, we have taken action to add around 30% capacity," he said.

MGA has taken a consortium approach, in line with it's aim to become a full-fledged tier-1 supplier. "We would like to be present in the global aerospace market as an end to end supplier of all components. We have developed a very good foundation of sub-sources and we will keep passing down low-end work as we move up the value chain," said Palta.

MGA, whose core strength is precision machining, recently formed a partnership with a company in Hosur for undertaking sheet-metal work.

"We are also looking at building strategic alliances with major aerospace companies. So far the efforts have been encouraging. By middle of next year we should start seeing results," he said.

"The space in our present location will be adequate for the next one year. We still have an additional 10,000 sq ft. By 2012 we will need to have additional space. Once we firm up strategic alliances it will mean bigger volumes so it will have to be in a new location," said Palta.

MGA's target verticals are aero structures, systems and small engine components.

Currently, more than 90 percent of the company's business is export oriented. "Next year we will see a growth in the domestic space as well. Two years ago we had only one HAL order. Now we are working with 6 HAL divisions," said Palta. It recently bagged an order from Hindustan Aeronautics (HAL) to manufacture drop-tanks for fighter aircrafts. It is also working with HAL to make components for the SU-30 fighter aircraft, Dornier aircraft, Intermediate jet trainers, Cheetah and Chetak helicopters.

Last year, the company also won a $10 million order to make structural components for the extended range fuel cells of the Boeing P-8A Poseidon multi-mission maritime (MMR) aircraft, from Marshall of Cambridge Aerospace, U.K. It also won contracts from Safran, MTU, Eaton, Goodrich, Hamilton Sundstrand, Parker aerospace, BAE Systems and Magellan Aerospace.

"This year we expect to close with a turnover of about $ 4.5 million. Next year we will have a steep rise and I am confident the turnover will be above $ 7 million. Already we have a order book of $ 7 million," he said.

"We will have to add inhouse processes, heat treatment capabilities, welding (TIG,electron-beam and resistance), sheet metal (hydroforming etc.), Pipe bending and forming, machining (5 axis, larger size, multi-spindle). We also intend to go in for compressor blade milling," said Palta while explaining the capabilities that would be added in the 5 year period.

"We are currently looking at increasing efficiency and establishing a configuration so that more than one machine can be managed by one person. By 2012 investment in man-power will increase," said Palta.

"We are going in for long term contracts for materials to be assured of availability and to be protected from fluctuations in prices," he added.

The company is looking at undertaking more work on a 'concept-to-delivery' model. Currently most of it's work is 'build-to-print'. "Over a 5 year period when we start moving into systems we will focus more on R&D," he added.

 
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