Aeroflex Industries is aiming to capitalise on India's burgeoning space program. (Representational)
Aeroflex Industries, whose metal hoses are used in utilities, refineries and fire fighting equipment, is in talks to enter the aerospace sector, a top company executive said, aiming to capitalise on India's burgeoning space program.
Following Chandrayaan-3's success, India launched its first solar mission, the latest step in efforts to increase its share of the global satellite launch market by fivefold within 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 in an interview last week.
The company is in early-stage discussions with the likes of Hindustan Aeronautics Ltd (HAL) and Bharat Heavy Electricals Ltd (BHEL) and even the Indian Space Research Organisation (ISRO), Mr Daud said.
While HAL and BHEL are existing clients, the ongoing talks are a first for specific space-related projects, he said.
The move will help the company, which made a stellar debut on the stock market about two weeks back, diversify its revenue stream.
Aeroflex expects its total revenue to increase by 35% in the next three to four years, with at least 5% coming from aerospace, Mr Daud said.
Its revenue has surged over 86% in the past two years, to clock in at 2.69 billion rupees ($32.5 million) in the year that ended in March.
Mr Daud also said Aeroflex aims to cut imports of coils -- a key raw material that accounts for half of overall raw material costs -- from China in favour of local suppliers, who can deliver much faster.
Aeroflex has three Chinese suppliers that, currently, meet 70%-75% of its needs for their coils. That will drop to 50%-60% by next March with higher local sourcing, he said.
"We have spoken to a large Indian steel manufacturer who has matched quality and Chinese prices. Going forward, 70-80% of our new orders would be catered by Indian vendors," Mr Daud said.
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