Maini Precision Products Limited (MPPL), a Bengaluru-based precision product supplier plans to form partnerships with global aerospace companies to bring technology to India in order to achieve Make in India with 50 per cent value addition.

Though the company is already an end-to-end solution provider, Gautam Maini, Managing Director, MPP, told businessline that the company now intends to continuously move up the value chain to produce more complex parts, complex materials, and set-up assemblies. Maini offers products in two categories: aerospace and automotive-industrial.

“In fact, we recently signed an MOU with a US-based company to manufacture ejector release units (ERUs). The timing of the whole thing is great, also, the opportunity and the export have been great.” In the aerospace and defence business, its list of clients includes 25 global players, such as Safran and Eaton.

Also read:Maini Precision Products, L3Harris Technologies to locally manufacture ejector release units

The company, which is majorly export-focused, is eyeing to clock ₹700 crore worth of exports, including both automobiles and aerospace, in the coming year. “This year, aerospace will be worth around ₹165 crore, while the rest will be from our automobile business,” said Maini.

As MPPL estimates growth from aerospace, it has also planned an investment of ₹35 crore spread over one year.

“We will invest in industrial and auto and move machines from there to create capacity. Wherever we have long-term contracts and high-volume orders in the automotive and industrial sectors, we invest in new technology machines that are not only cost-effective but also operationally faster, saving both operating costs and investment costs.”

Also read:Jupiter Wagons to roll out electric commercial vehicles by Q3 CY23

Additionally, the fungible general-purpose machines that are running current automotive and industrial products will be moved over to enhance capacity in the aerospace industry, he added.

The optimism is because of the demand environment, he noted. The company has recently signed two memoranda of understanding at Aero India, including one with BEML for the manufacture of airborne sheet metal components for global OEMs in the aerospace industry. The company also said that it is exploring establishing multiple joint ventures.

Currently, the company has a manufacturing footprint of 11 units, of which two plants are dedicated to the aerospace and defence businesses. The aerospace business largely exports to countries on the European continent and the United States.

Also read:Collins Aerospace to bring manufacturing of advanced aerostructures, interiors, avionics to Indi

As to the reason for recalling its IPO, Maini said, “Right now, the market is very volatile. Whatever has been happening, it’s not a conducive environment. Moreover, the company is doing well. We’ll wait for the right time to go to the market.” In 2021, MPPL filed preliminary papers with SEBI to raise funds through an initial share sale.

Related Topics