Aeroflex Industries Sets Sights on Aerospace Sector for Expansion.

Aeroflex Industries Sets Sights on Aerospace Sector for Expansion.

Asif Iqbal | September 13, 2023 | 04:15 PM IST | Breaking News, Technology | Follow on Google News

Aeroflex Industries Sets Sights on Aerospace Sector for Expansion.

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Bengaluru-based Aeroflex Industries, known for its metal hoses used in utilities, refineries, and firefighting equipment, is exploring opportunities to enter the aerospace sector, aiming to align with India’s growing space program.

Following the remarkable success of Chandrayaan-3, India has embarked on its maiden solar mission, marking a significant stride towards increasing its share in the global satellite launch market fivefold over the next decade.

Eying a Space Odyssey

It is our vision to have our products play a vital role in India’s forthcoming space missions,” revealed Asad Daud, the Managing Director of Aeroflex, in a recent interview with Reuters.

The company is currently engaged in preliminary discussions with major players in the aerospace industry, including Hindustan Aeronautics Ltd (HAL), Bharat Heavy Electricals Ltd (BHEL), and the Indian Space Research Organisation (ISRO).While HAL and BHEL have been long-term clients of Aeroflex, the ongoing discussions represent the company’s first foray into space-related projects.

Diversification and Growth Prospects

A move into the aerospace sector promises to diversify Aeroflex’s revenue streams, particularly after its successful stock market debut just a couple of weeks

ago.Aeroflex anticipates a substantial increase in its total revenue, projecting a 35% growth over the next three to four years, with at least 5% attributed to the aerospace sector, as indicated by Mr. Daud.

The company has already witnessed remarkable revenue growth, surging by over 86% in the past two years, with the figure reaching 2.69 billion rupees ($32.5 million) in the fiscal year ending in March.

Reducing Dependence on Chinese Suppliers

Additionally, Mr. Daud highlighted Aeroflex’s strategic objective to reduce its reliance on Chinese suppliers for coils, a critical raw material that constitutes half of the overall raw material costs.

Presently, three Chinese suppliers cater to 70%-75% of Aeroflex’s coil requirements. However, by March next year, the company plans to reduce this dependency to 50%-60% by sourcing more from local suppliers who offer quicker deliveries.

“We have engaged with a prominent Indian steel manufacturer that matches Chinese quality and prices. In the near future, approximately 70-80% of our new orders will be fulfilled by Indian vendors,” emphasized Mr. Daud.

Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.