Critical components maker for global original equipment manufacturers (OEMs) in energy and aerospace industries Azad Engineering laid foundation on Monday for a greenfield, ₹500 crore plant and with it announced work on another facility may begin as early as next fiscal on the back of a growing order book from the OEMs.
Managing Director Rakesh Chopdar said the plant, for which the foundation was laid virtually by Industries and IT Secretary Jayesh Ranjan, will be third for the Hyderabad-based company and come up on 23.45 acres at Tunki Bollaram in Medchal Malkajgiri district. The first phase, involving construction of 30,000 sq meters, was likely to be ready by August. The facility will manufacture and export critical components for the global OEMs such as GE, Mitsubishi, Siemens, Toshiba, GE Aviation, Boeing and Honeywell. It will also host a centre of excellence of global standards focused on training manpower.
Azad Engineering now has a plant in Jeedimetla and Pashamylaram, which together employed 1,000 people. The headcount is expected to double with the Tunki Bollaram facility. The fourth plant will be established near Dundigal, Mr.Chopdar said, pointing to how capacity additions were being necessitated with order book expected to grow on account of new customers as well existing OEMs giving more work. He estimated work on the fourth plant to begin early next financial year.
To queries, he said the existing orders totalled around ₹2,000 crore. The company, which expects to clock a turnover of ₹210 crore this fiscal and ₹500 in 2-3 years, plans to cater to oil and gas global OEMs. A team from French multinational electricity utility EDF was scheduled to inspect the company facilities this week as part of qualification process to supply parts, through OEMs.
Azad Engineering, which had raised $20 million in June, in the months ahead intends to evaluate the option of either tapping private equity or making an initial public offer (IPO) for the $110-115 million that it estimates will be required for the expansion.
