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Home arrow Alliances and Joint Ventures arrow Ravilla Precision and Kilgour Industries form JV for aerospace components
Ravilla Precision and Kilgour Industries form JV for aerospace components Print E-mail
Written by Arjun   
Thursday, 10 November 2011

Bangalore: Coimbatore based Ravilla Precision Engineering Pvt. Ltd. has formed a joint venture (74:26) with Kilgour Industries Ltd, based in Lancashire, United Kingdom for the production of aerospace components. Ravilla's existing facility at Singanallur will be shifted to Vellamadai, where the company has 23 acres of land, to accommodate the JV facility. The new facility is expected to be ready in the next 18 months, by 2012-13, with 50,000 sq.ft. of built up area for machining and 20,000 sq.ft. for surface treatments.

"I personally feel that the scale and type of operations of both companies are in perfect alignment for this JV agreement," said Arun Selvaraj, Managing Director, Ravilla Precision Engineering Pvt. Ltd.

"The total investment in the new facility will be around 5 million USD, of which nearly 4 million USD will be spent on increasing the company's machining capacity and creating a surface treatment facility," said S. Ravi Kumar, General Manager, Ravilla Precision Engineering Pvt. Ltd.

Once the certifications and approvals are in place the joint venture will cater predominantly to the export market. Ravilla will get surface treatment technology from Kilgour Industries. By July 2012 the company is scheduled to be AS 9100 Rev C certified for machining and the Nadcap certification is expected to be in place by March 2013.

The JV will now send its employees to the UK for training on standard operating procedures, which will ensure compliance to quality and delivery requirements. By March 2012 the number of employees will be increased by 30 percent from the current strength of 45.

"In 5 years to attain the growth that is targeted, the joint venture company will also have to create a dependable supply chain in India. Around 40 to 50 percent of the growth will be through the supply chain. We will outsource sheetmetal, fabrication and machining work to approved companies in the local supply chain," said Ray Kilgour, Managing Director, Kilgour Industries Ltd. In the next 5 years he expects the joint venture to generate a turnover of over 60 million USD.

In addition to being attracted by offset requirements, Kilgour Industries Ltd was looking at immediate capacity expansion. There is also a 30 percent cost reduction when the components are manufactured in India. Speaking about forming the JV, Ray Kilgour said that the growth plans of both companies are similar. "India is a land of opportunity. The similarity in the laws of both countries, also makes it easy," he added.

To begin with the JV will start by manufacturing aero engine cowl parts. It will manufacture components made of titanium, aluminium and steel. The JV will add further capacity by investing in 3 to 5 axis machines, mill turn centers, grinding machines, non destructive testing and coordinate measuring machines."A lot of the parts that the JV is going to be doing will all be new. Parts that we don't currently manufacture in the UK. Turnkey operations like fixturing and tooling will be done from India," said Kilgour. "We will also look at creating an engineering services capacity through this joint venture," he added.

Kilgour specialises in machining, surface treatments and sub assemblies of aerospace components with 3 to 5 axis cnc milling machines and upto 8 axis mil-turn machines. Kilgour's surface treatments company offers services such as NDT ( non destructive testing ) penetrant, magnetic , anodic and visual, wet process such as chromic acid anodization, alocrom 1200 and passivation of stainless steels, various coatings such as prime, finish and molykote.

Kilgour Industries has bagged a number of contracts in the UK and is currently facing capacity constraints. Having registered a turnover of 9 million USD in FY 2011 (fiscal year ended July 2011), it expects to close FY 2012 with a turnover of 14.4 million USD. The company currently has 80 employees in the UK. It plans to increase its employee strength to 150 by March next year.

"During the recession, we doubled in size, sales wise," said Ray Kilgour. The company increased its sales by 40 percent in the past 4 months. At its UK plant, the company has invested 4 million USD on machining capacity over the past four years and 4 million USD on surface treatment capacity. "In the next 2 years we will focus on expansion in the UK and in India," he added.

Arun Selvaraj admits that rather aggressive targets have been set for their growth over the next 5 years. "We do realise that we have to move up the value chain and also realistically look into acquiring niche companies or companies similar to ours, for organic as well as inorganic growth to achieve our set targets," he said.

Ravilla's existing customers include Liquid Propulsion Systems Center, Vikram Sarabhai Space Center, Indian Space Research Organization, Hindustan Aeronautics Limited, Bharat Heavy Electricals Ltd, Larsen & Toubro Limited, Gas Turbine Research Establishment Center, Lakshmi Machine Works, Lakshmi Technology and Engineering, BEML and JA Motor Sports. It is involved in the manufacture of Aeronautical & precision components, Power generation components, Petro chemical Valves as per customer requirements. However the company had not yet started exporting components. With the joint venture, most of the sales will be driven by exports.

AeroDNA and Makven Capital facilitated the formation of this joint venture.

Last Updated ( Monday, 21 November 2011 )
 
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