According to The Times of India, leading global aerospace companies are progressively obtaining aircraft parts from India, resulting in significant growth in the nation’s aero component industry. Local companies are expanding their operations and advancing in the value chain, with many getting ready to secure about Rs. 5,700 crore (US$ 649 million) raised via initial public offerings (IPO). Advantageous tariff frameworks, where aviation components face merely 25% import duty in the United States (US) compared to as much as 50% for textiles and auto components, have further bolstered India’s role as an essential supply center. Aequs, located in Belgaum and a supplier for Airbus, Boeing, and Bombardier, generated 89% of its Rs. Revenue of 925 crore (US$ 105.5 million) in FY25 from aerospace components, showcasing the industry’s robust export focus.
Sourcing for aerospace from India has grown significantly. Boeing currently acquires more than Rs. 8,771 crore (US$ 1 billion) in components each year, an increase from Rs. 2,193 crore (US$ 250 million) ten years earlier. In contrast, Airbus intends to acquire Rs. 17,542 crore (US$ 2 billion) by the year 2030. Azad Engineering, located in Hyderabad and a supplier for Rolls-Royce and Honeywell Aerospace, announced an 84% increase in revenue from aerospace and defence to Rs. 81 crore (US$ 9.2 million) in FY25, with its order backlog totaling Rs. 1,700 crores (US$ 193.8 million). Unimech Aerospace is further growing via acquisitions and partnerships to create more intricate systems. Industry leaders anticipate that India's portion of the global aerospace supply chain will increase from the present 2% to 10% in the upcoming years, fueled by enhancing local skills, robust OEM collaborations, and synergy with the 'Make in India' initiative.
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