A senior executive said India’s Aeroflex Industries (AERO.NS), making metal hoses for utilities, refineries, and firefighting equipment, is negotiating to join the aerospace industry to capitalize on the country’s growing space program.
After its successful lunar mission, India launched its first solar mission, aiming to fivefold its satellite launch market share in the next decade.
“It is our aim that our products be a part of India’s next space mission,” Aeroflex Managing Director Asad Daud told Reuters last week.
Daud said the business is in early talks with HAL, BHEL, and ISRO.
He added that HAL and BHEL are longstanding customers, but the current conversations are a first for space-related projects.
The move will help the firm diversify its income source after a strong stock market debut two weeks ago.
Daud said Aeroflex anticipates its sales to rise 35% in three to four years, including at least 5% from aerospace.
Its income rose 86% in two years to 2.69 billion rupees ($32.5 million) in March.
Daud also stated Aeroflex wants to switch from Chinese coil imports, which account for half the raw material prices, to local vendors, who can supply quicker.
Aeroflex presently gets 70%-75% of its coils from three Chinese vendors. Daud predicted a 50%-60% decline by March with more local sourcing.
We talked to a huge Indian steel company that matches Chinese quality and costs. According to Daud, 70–80% of our new orders would be fulfilled by Indian suppliers. Domestic providers deliver in 4-5 days, whereas Chinese goods take over a month.” ($1 = 82.8750 INR)
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