Hyderabad: Precision engineering firm Azad Engineering on Monday laid the foundation stone of its third state-of-the-art largest lean manufacturing facility and Centre of Excellence of Global Standards with an investment of Rs. 500 crore at Tunki Bollaram in the outskirts of the city.
The foundation for the new facility coming up in 23.45 acres was laid digitally by Telangana principal secretary (IT and industries) Jayesh Ranjan in the presence of Azad Engineering managing director Rakesh Chopdar.
Speaking on the occasion, Mr. Rakesh said they were planning to acquire IGBC gold-rated green building certification for the new plant. "The construction of the first phase of 30,000 sq. meters will be completed by July next year and this facility will operational by Q2FY23. We will primarily manufacture and export super-critical components for global OEMs in the aviation and power generation industry such as GE, Mitsubishi, Siemens, Toshiba, Boeing, Honeywell Rafael, BHEL and HAL among others," he said.
The new facility will create employment opportunities for around 1,000 people, he said and added, "The third plant is part of our strategic initiative to significantly scale up our manufacturing operations by investing in world-class Industry 4.0 lean manufacturing facility to cater to the demand of our esteemed global clientele."
The Hyderabad-based Azad Engineering manufactures complex and super-critical rotating components for the turbine and aerospace industry. The firm, which has a plant in Jeedimetla, is a qualified Tier 1 partner to leading OEMs.
The company is also planning to set up its fourth plant at Mangampet near Patancheru on the outskirts of the city with an investment of over Rs. 500 crore, Mr. Rakesh said. Earlier in June, the company had successfully closed its first round of funding of $20 million, he said and added that the company is also planning to its initial public offering (IPO) likely by next year to raise around Rs. 1,200 crore to meet the global demand in power generation and aerospace.
He said the current revenue of the company was Rs. 210 crore and is expected to touch Rs. 2,500 crore in next five years with this new facility. Of its total business, 85 per cent comes from exports and out of its total revenues, 85 per cent comes from power generation and remaining 15 per cent from aviation, Mr. Rakesh informed. He said that in the coming years, the growth in the aviation business will reach 50 per cent.
The company had earlier won a contract from Boeing to manufacture and supply critical aviation components and parts for the global aerospace company's products. It will be delivering components to Boeing in February next year, Mr. Rakesh added. The company's current order book was Rs. 2,000 crore against Rs. 1,600 crore last year, he concluded.