Aequs Raises ₹448 Crore and Unveils Advanced Technology Products Vertical

Aequs, the precision manufacturing company, has successfully secured $54 million (approximately ₹448 crore) in a fresh equity funding round, marked by the prominent participation of Singapore-based Amansa Capital, which led the investment effort and introduced five new investors to the company's roster.

This financial infusion coincides with Aequs's strategic move to launch an Advanced Technology Products (ATP) vertical dedicated to the production of high-precision components for consumer electronics firms. The ATP vertical is anticipated to become operational by the first quarter of the coming year, as disclosed by Aravind Melligeri, Chairman and CEO of Aequs.

The company is in the process of constructing a 200,000-square-foot facility within its extensive 400-acre Hubbali campus. This expansion will result in the addition of 1,200 employees, further augmenting Aequs's growing workforce. Melligeri revealed, "The initial phase of this project will involve a total investment of ₹450 crore, with around ₹200 crore already invested in setting up the infrastructure, operations, and equipment."

Aequs is already a notable player in two other verticals, catering to consumer durables and aerospace. In the aerospace sector, it holds a significant position, providing precision components to industry giants like Airbus, Boeing, Honeywell, and other key players.

With its focus on precision manufacturing in aerospace and other sectors, the company primarily generates revenue from exports and has established a substantial aerospace-centric manufacturing ecosystem within India's inaugural aerospace SEZ located in Belagavi, Karnataka.

Aequs currently reports an annual turnover of ₹1,000 crore and anticipates substantial growth, particularly in the precision component manufacturing sector within the new ATP vertical, poised to become a significant driver of future revenue expansion.

Melligeri observed, "Although the consumer durable side of business continues to struggle due to the global price market and weak demand sentiment from the US recession, we expect the aerospace business to grow 30 to 40 percent and contribute close to $100 million in revenue."

Aequs boasts the largest aerospace machining capacity in India and maintains a global presence with facilities in the United States and France, in addition to its extensive operations in India.

This round of funding saw the involvement of several notable investors, including global investment firm Steadview Capital, Catamaran (the family office of Infosys founder N. R. Narayana Murthy), Sparta Group LLC, the investment office of Desh Deshpande, and various individual investors. Notably, Aequs had previously secured ₹225 crore from Amicus Capital in an earlier funding round in April.

Furthermore, Aequs is gearing up for an initial public offering (IPO) filing in the next 3-5 years, aligning with expectations of market readiness and company growth.

HBL