Hyderabad: Hyderabad-based precision engineering company Azad Engineering closed its first round of funding of $20 million (about Rs 145 crore) from DMI Management, which the company will utilise in setting up its second manufacturing facility at Shamirpet at a total investment of $80 million (about Rs 585 crore).
The facility will create 1,500 jobs locally, in addition to 800 people the company employs now. The company’s new facility will spread across 50 acres allotted by Telangana State Industrial Infrastructure Corporation (TSIIC). With the new facility, capacity will be expanded to deliver increased capability to cater to aerospace and energy partners.
The company’s expansion plan will help execute the large order book of $250 million (over Rs 1,800 crore) secured for the next five years. Azad is a qualified Tier 1 partner to global OEMs (original equipment manufacturers) such as GE, Mitsubishi, Siemens, Toshiba, MAN, Doosan Skoda, GE Aviation, Boeing, Honeywell, Eaton Corporation, Rafael, BHEL, HAL, Baker Hughes among others.
Catering to OEMs
Established in 2008, Azad Engineering manufactures highly engineered, complex, and super critical rotating components for niche turbines. The company has received all qualifications and approvals from global OEMs.
Azad Engineering founder and MD Rakesh Chopdar told Telangana Today, “We have developed components that are used in turbines in land base, aviation and space. These engines produce energy. We are the only one in the country to make these components. The OEMs earlier had been buying these components from China, Europe and America. We have surpassed all entry barriers and signed up with global OEMs. We have a strong order book and are building our order book further. The new facility will take care of the ramp-up.”
Future growth
He added, “We are looking at a turnover of Rs 240 crore this year and next year we are aiming for Rs 400 crore. After 3-4 years, we will see whether to go for an IPO or private equity to meet the remaining $60 million of the total $80 million investment we want to make in Hyderabad in the second facility.”
Azad Engineering will also look to add Airbus to its clientele in the aerospace sector. The company will also explore opportunities in Defence and Oil & Gas sectors, after establishing its presence in the aerospace sector over the next two years, he informed.
When asked about the digital adoption at Azad, he said, “We have developed a software, which will be rolled out in-house in the next four months. We are also going to use artificial intelligence that will help in predictive analytics that will help improve manufacturing further.”
Jayesh Ranjan, principal secretary, Industries, Government of Telangana added, “Azad has ensured Indian presence in the global precision engineering map. Azad broke all the barriers & today stands as the most preferred & favourite supplier of global OEM. The Government of Telangana is proud to support this company and create a precision engineering cluster which will create jobs for 1,500 plus highly skilled people in Hyderabad to leverage and grow the existing aerospace industry cluster.”
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