The Hindu Business Line : Cades plans $10-m expansion

Growth plans
Co expects to grow to 20 pc in the next year from 10-12 pc
Plans to have a 100-member team in the aero domain
Looks at Europe, the UK, and Netherlands for acquisition
Headcount to be 500 by the year-end and 1,000 by next year

Bangalore , Sept. 12

Cades, a product engineering services firm specialising in aerospace and automotive domains, is set to invest $10 million (around Rs 45 crore) more to expand operations here.

Headquartered at Bangalore, Cades has already invested $5 million in its offshore development centre and plans to add five new offshore engineering centres across other cities. Other plans for 2006-07 include adding 30 new customers and setting up an advanced centre of excellence for product development.

The company also plans to have a stronger domestic focus. Inorganic growth is also being considered. "We plan to acquire a 50-100 member team in the aero domain," said Mr Mishra. The firm is looking at Europe, the UK, and Netherlands for acquisition. The company employs 350, which will rise to 500 by the year-end and a 1,000-people team by next year, said Mr Dataram Mishra, Managing Director and CEO, Cades Digitech.

Cades currently has 10-12 per cent market share of incoming business in the global aerospace and defence space. This is expected to grow to 20 per cent in the next year. The company claims a domestic share of 70 per cent of a Rs 250-crore market.

Ongoing projects

Ongoing projects include the design of an antenna for Indian Space Research Organisation's Chandrayan space programme, developing part of the stub wing and reducing weight of a LCA (Light Combat Aircraft) and an early warning system for aircrafts. The firm is also developing road simulation and automotive sub-system modules for the auto sector.

The outsourced business to India will be a $13-billion market then, and we want to grab this opportunity," said Mr Mishra.

Offset business

Cades said it was keen on participating in the incoming aerospace `offset' business, and will seek registration with the Ministry of Defence (MoD). "The offset opportunity in civil and military aerospace is rising in India and is currently worth $7 billion. Many joint venture opportunities are coming up," said Mr Mishra. The MoD's offset guideline states that 30 per cent of cost of aircraft deals by foreign vendors should be used to source products or services from domestic suppliers.

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