Aequs setting up Rs500 cr aerospace facility in Goa
Leading aerospace precision engineering firm Aequs would invest Rs500 crore to set up a dedicated manufacturing facility at Tuem in Goa for the Indian defence sector, said a top company official here on Thursday.
 
"Our new facility will make high-end components and systems for the Indian defence industry and support the government's 'Make in India' initiative," said Aequs Chief Executive Officer Aravind Melligeri at the Aero India 2017 expo here.
 
As a tier-1 supplier of aerospace components to Indian and global majors, Aequs has a $100 million (Rs.667 crore) machining facility in its 250-acre Special Economic Zone (SEZ) at Belagavi, about 500 km away from here.
 
The Belagavi facility makes titanium machined parts for the A-320 new engine programme of the global aerospace major Airbus SAS.
 
The new facility will be built by February 2019 in Goa's industrial cluster, about 30 km from Panaji, where the Goa government has given the company 50 acres of land on lease at a minimum cost.
 
"The facility will have multi-capability with CNC (Computer Numeric Control) machines and new age technology to design and make precision components for the Indian defence firms," Melligeri told IANS.
 
The company plans to hire about 2,000 engineers for the facility and hopes to get technology transfers from global aerospace majors.
 
"We will also support the government's 'Skill India' initiative to enhance the skills of our engineers in precision manufacturing and new-age technologies," noted Melligeri.
 
As the Indian defence sector is import-dependent for products and technologies, the new facility is aimed at increasing the local content and minimising imports.
 
"The company's new facility will provide impetus to our defence sector and promote the government's 'Make in India' programme," said IT Secretary and Director Ameya Abhyankar on the occasion.
 
Foraying into defence manufacturing in 2013, the eight-year-old company has been working with the state-run Hindustan Aeronautics Ltd (HAL) on machined structural parts for its various platforms, including the Light Combat Aircraft (LCA) Tejas, Sukhoi-30MKI fighter and Advance Light Helicopter (ALH).
 
"Our Goa facility will manufacture high-end aerospace and defence equipment to reduce import costs and add in-country value to the sector," added Melligeri.
 
The company's SEZ unit at Belagavi has facilities for fabrication, machining, treatment, assemblies and warehousing for production value chain.
 
Besides Airbus, the company's global customers include UTAS, Bosch, Eaton, Baker Hughes and Halliburton, among others.
 
The company is showcasing its products and technologies at the 11th edition of the five-day biennial expo at the Yelahanka base of the Indian Air Force (IAF).
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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    Buyback beckons Infosys to boost shareholder value: ex-CFO
    With the Tata Consultancy Services board slated to consider buyback of equity at a meeting on Monday, a former chief financial officer (CFO) of Infosys has said that the Bengaluru-headquartered IT giant too needs to consider the buyback option for "enhancing shareholder value".
     
    "It (buyback) is the right thing to do because the IT services industry is transforming from a growth stock to a value stock," former Infosys CFO V. Bala told BTVi in an interview.
     
    He pointed out that as per industry body Nasscom figures released on Wednesday, the IT sector is poised to grow at 8.6 per cent in the current fiscal, which is the "lowest ever we have seen". 
     
    "Any sensible board will look at and understand the transition to value stock and return more money to shareholders," he said. 
     
    Indian IT companies in recent years have seen only single-digit growth, leading to low shareholder returns, which has provoked firms to look at the buyback option as another means of rewarding shareholders.
     
    "Lots of things have changed for the industry... earlier we were growing at 40-50 per cent. When you are a growth stock, you require cash for further growth. Also, cash as a percentage of market capitalisation was very low at that point of time," the Infosys ex-CFO said. 
     
    Among other IT companies, Cognizant recently announced a $3.4 million buyback, while Wipro and Accenture have conducted their own. 
     
    Bala elaborated on the mechanics of this major transformation being witnessed in the IT sector.
     
    "Infosys is sitting on $6 million of cash, with a market capitalisation of $32 billion, which is 20 per cent, and growth has come down to single-digit. When 25 per cent of other incomes comes from financial income, you are no longer a software stock but a financial services stock " he said.
     
    "When things change, when the context changes you have to understand the transition and look to return more money to shareholders," he added. 
     
    He said that both in the near- and medium-term, there is no need to keep large cash for acquisitions or strategic objectives, because the purchase of new technology is very costly. 
     
    "All companies have clearly said they don't want yesterday's technology, while new technology comes at a very high price, where your ability to generate returns on top of the purchase price, your IRR (internal return of return), is very limited," Bala said.
     
    According to Bala, for companies and boards, whose primay task is to increase shareholder value, buyback would be the sensible course in the current scenario.
     
    "I think if you have large cash, you should return money to shareholders. It'll improve returns, improve EPS (earning per share) and generate shareholder value," he said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
      

     

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    COMMENTS

    Krishnamoorthy Padinjara Madhom

    2 years ago

    I am commenting on the share buy back......
    1.If Infosys has excess money it shoud be paid as one time additonal
    Divident or issue bonus shares
    2.It will help small time investors. Small time investors prefer to retain shares as it fetches good returns to them.
    3.Buy back helps high volume share holders and those who
    Do not mind selling and a guick 20% profit....
    This is my opinion and hope the board will consider the request....

    Bajaj Auto demands no extension of deadline for BS IV norms
    Bajaj Auto on Wednesday said all its two- and three-wheelers manufactured from January 2017 are compliant with BS IV norms and demanded no amnesty be granted in meeting the deadline of April 1, 2017.
     
    The Environment Pollution Control Authority (EPCA) directed neither the sale nor the registeration of any pre- BS IV vehicle from April 1, 2017.
     
    "As a responsible corporate, we have complied with this directive and had already commenced manufacturing of BS IV complaint vehicles from October 2016. Moreover, with effect from January 2017, all products from all our three plants are BS IV compliant," said automaker's MD Rajiv Bajaj. 
     
    "We have thus ensured that all vehicles presented for registration from April 1 onwards will be BS IV compliant," he said, adding that tightening emission norms to meet BS IV standard comes at a substantial cost.
     
    The Central Pollution Control Board had earlier confirmed that BS III compliant vehicles could not be sold or registered anywhere in the country from April 1, 2017. However, some automobile companies have requested that this deadline be extended.
     
    "All those who do not change on time will commercially benefit by selling their products at a lower price in case the amnesty is granted. Therefore, the manufacturers who have followed all directives in letter and spirit will actually end up being penalised," he said.
     
    The automaker also said that the authorities should send strong message by "not giving any amnesty" and if at all any short-term amnesty is given, "it should be accompanied by a sizeable financial penalty on a per vehicle basis on all BS III vehicles registered after April 1, 2017" to discourage this practice in future.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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