Azad Engineering eyes 10x capacity expansion by FY27
Lays foundation stone to set up a state-of-the-art lean manufacturing plant in Hyderabad with an investment of over Rs 500 cr
image for illustrative purpose
Hyderabad City-based precision engineering company Azad Engineering Pvt Ltd is in the process of setting up two manufacturing units in Hyderabad for 10X capacity expansion by financial year 2026-27. It has laid foundation stone for a state-of-the-art lean manufacturing facility and centre of excellence of global standards at Tunki Bollaram, Medchal Malkajgiri district of Telangana.
The digital ground breaking ceremony was attended by IT and Industries Principal Secretary Jayesh Ranjan. The company has plans to invest more than Rs 500 crore over the next three years on this plant, spanning an area of 23.45 acres, in a phased manner. This facility will create a one-of-its-kind precision manufacturing ecosystem which will feature advanced technology.
The new facility will showcase cutting-edge futuristic technologies such as industrial artificial intelligence, robotics, digitisation and lean. The company is also planning to acquire IGBC Gold Rated Green Building certification for this plant. The construction of the first phase of 30,000 sq meters will be completed by July 2022.
This facility will be operational by the second quarter of FY 2022-23 and will primarily manufacture and export super critical components for global OEMs (original equipment manufacturers) in the aviation and power generation industry such as GE, Mitsubishi, Siemens, Toshiba, MAN, Doosan Skoda, GE Aviation, Boeing, Honeywell, BHEL, HAL and Baker Hughes.
The company currently has two plants – 11,800-sq m facility in Jeedimetla and another 8,800-sq m forging unit in Pashamylaram. Around 1,000 employees are working in these two existing units. The headcount is expected to double to 2,000 with the setting up of third plant in Tunki Bollaram. This will create job opportunities to the local communities in and around its vicinity.
Rakesh Chopdar, Managing Director of Azad Engineering said, "Setting up this 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. We are investing to create a facility that will feature unique capabilities."
"It took us years to clear all the major stringent entry barriers and now is the time to ramp up the scale of production to meet the demands. Azad is all set to witness rapid ramp-up in the top line with each of its clients given the qualification process is already completed and all the business orders are in place," he added.
Telangana state industrial infrastructure corporation (TSIIC) has allotted 45 acre land to Azad Engineering, including 23.45 acre in Tunki Bollaram and 21.55 acre in Mangampet near Genome Valley. Combining these two plants - one with foundation stone laid today and another one will happen shortly, the company will be adding 10X capacity by FY2026-27.
"The current installed capacity can take the company's top line to about Rs 250 crore. The enhanced capacity would take us to more than Rs 2,500 crore over the next five year period. We have raised first round funding of $20 million from DMI Management in June, and we are evaluating options to raise $110 million in the second round," Chopdar informed.
Established in 2008, the company has witnessed compound annual growth rate (CAGR) of 15-20 per cent now. It is all set to grow at a CAGR of around 50 per cent in the next five years with an impressive and a sustainable bottom line. It claims to be the only qualified rotating component manufacturer in India for several high-end technology turbines to many OEM's.
