Hyderabad: Hyderabad-based precision engineering company MTAR Technologies is looking at setting up a Special Economic Zone (SEZ) with an export oriented unit at Adibatla, Hyderabad. This project will see an investment of about Rs 150-200 crore.
MTAR currently has seven strategically based manufacturing units including an export-oriented unit based in Hyderabad. The company has manufactured critical components and assemblies such as liquid propulsion engines, components, and assemblies for cryogenic engines, specifically turbo pumps, booster pumps, gas generators and injector heads for such engines, and electro-pneumatic modules to serve space launch vehicles.
P Srinivas Reddy, managing director, MTAR Technologies, told Telangana Today in an exclusive interview, “We are looking for suitable land and specific facilities where we can set up the export oriented unit in a special economic zone. We want to create an integrated facility there. Talks are in progress with TSIIC. We may invest about Rs 150-200 crore. We are looking at a land parcel adjacent to the existing SEZ in Adibatla so that we can benefit from the ecosystem.”
He added, “We are also in the process of establishing dedicated sheet metal and specialised fabrication facilities at Adibatla. MTAR has constructed a manufacturing facility with a shed of 140m x 50m for sheet metal vertical in a 9.6-acre facility. We are planning to construct an additional shed for specialised fabrication. The existing Adibatla unit doesn’t come under the proposed SEZ.”
The sheet metal facility is expected to be completed by next month and the specialised fabrication facility will be completed by June 2022. These two new capabilities will enable the company to expand the customer base by adding more MNC customers. For the clean energy sector alone, the company is investing about Rs 30-40 crore to enhance capabilities, Reddy informed.
With the additional capabilities, MTAR will be able to increase its wallet share with existing customers in nuclear power, space & defence, and clean energy sectors as well as cater to new customers in these sectors. As the entry barriers are high, the company sees lesser competition in the niche sectors it operates, giving it an edge.
“Within the existing wide sectors we operate- aerospace, defence and clean energy, we want to become a fully integrated company in terms of electronics and mechanical systems. There is a lot of scope within these segments itself for us to grow. We will increase our customer base and aim to become an integrated company,” he added.
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