BENGALURU: Aequs, a contract manufacturing company for Aerospace, Toys, and Consumer Durable Goods industries, has raised about Rs 225 crore from Amicus Capital and existing investors. The company sees good growth and demand coming in aerospace.
"Toys (vertical) is taking time to grow as the sector has been hit by inflation. Consumer durables is a fairly new business, but we have built up a good capacity, which we hope to see utilized effectively this year," Aravind Melligeri, Chairman and CEO, Aequs, told The New Indian Express.
When asked which vertical will receive more funds, he said most of this (funds) will be used for aerospace needs.
This is the maiden round of external investment for the company. "It is more about an external validation of what we are doing. This can happen only when external investors are on board. Also, we are at a stage when the next phase of growth needs to happen. Right now, the funds are for internal deployment for working capital needs and capacity expansion where needed," he added.
The company has manufacturing operations across three clusters- Belagavi Aerospace Cluster (BAC), Koppal Toys Cluster (KTC), and Hubballi Durable Goods Cluster (HDC), located in North Karnataka.
In addition to its India-based manufacturing operations, Aequs also operates global aerospace manufacturing facilities located in the US (Paris, Texas) and France (Cholet).
Founded in 2006, it currently employs over 4,000. Melligeri also said that the equity investment by Amicus Capital marks the first external funding into Aequs and sets us on a new trajectory to further expand operations in the three current verticals and continue to provide manufacturing solutions to its global customers.
Mahesh Parasuraman, Co-Founder and Partner at Amicus Capital, said, “With its marquee customer base, infrastructure and vertically integrated manufacturing capabilities, Aequs is uniquely positioned to play a significant role in India’s emergence as a global manufacturing power-house."