Aequs eyes growth in $12 billion Indian auto component market

Bangalore: Aequs, among India's fastest growing precision manufacturing companies, laid the foundation for a automotive components plant at its 250-acre AequsSEZ in Belgaum, Karnataka.

The new facility will add machining capacity of over 100,000 hours annually and will support the company's rapid expansion plans in the US and Europe markets this year. The new plant is expected to be operational from March 2015. Aequs will manufacture engine and transmission parts, sub-assemblies and assemblies in the new plant.

Aequs (formerly QuEST Global Manufacturing) aims to increase its revenues from the automotive business to $ 30 million by 2020 and is scouting to establish joint ventures to add to its capabilities in this vertical.

"With India having emerged as a major auto component procurement hub for global OEM players, there is a rising thrust on technology innovation and cost optimization for manufacturers. Most leading auto manufacturers of the world outsource their component manufacturing to India and by 2020, India's exports from this industry is expected to reach US$40 billion, from the current US$12 billion," said Aravind Melligeri, Chairman and CEO, Aequs.

He added that with the new auto component facility the company was looking to garner significant market share.

Aequs's automotive customers include Bosch, Jacobs Vehicle Systems and Bosch Rexroth. It is one of the preferred partners for Bosch in India and has provided zero defect delivery to the auto major for over six years now.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.