Precision manufacturing company Aequs has raised $54 million ( ₹448 crore) in a fresh round of equity funding led by Singapore-based Amansa Capital, which brings on board five new investors.  

The funding comes as the company plans to launch a new Advanced Technology Products (ATP) vertical to manufacture high-precision components for consumer electronics companies, which is expected to be operational by the first quarter of next year, Aravind Melligeri, Chairman & CEO, told BusinessLine. 

A 200,000-square-foot facility is under construction within its 400-acre Hubbali campus, and this expansion will result in the addition of 1200 employees, the Chairman and CEO, revealed.  

“The initial phase of this project will involve a total investment of ₹450 crore, with around ₹200 crore has already been invested in setting up the infrastructure, operations, and equipment.” 

Aequs already operates in two other verticals: consumer durables and aerospace. Notably, it is a prominent player in precision components for the aerospace sector, serving some of the global giants including Airbus, Boeing, Honeywell and other major industry players.  

With its focus on precision manufacturing in aerospace and other sectors, it primarily derives its revenues from exports and has established a significant aerospace-focused manufacturing ecosystem in India’s first aerospace SEZ in Belagavi, Karnataka.  

The company has an annual turnover of ₹1,000 crore, and anticipates significant growth, particularly in precision component manufacturing within the new vertical, which is expected to be a key driver of future revenue growth. 

“Although the consumer durable side of business continues to struggle due to the global price market and weak demand sentiment from the US recession, we expect the aerospace business to grow 30 to 40 per cent and contribute close to $100 million in revenue,” noted the CEO. 

The company operates the largest aerospace machining capacity in India and has a global presence with facilities in the US and France, in addition to its Indian operations.

The funding also involved global investment firm Steadview Capital, Catamaran (the family office of Infosys founder N. R. Narayana Murthy), Sparta Group LLC, the investment office of Desh Deshpande, and various individual investors. Prior to this funding round, the company had raised ₹225 crore from Amicus Capital in April. 

Additionally, Aequs also plans to file for an initial public offering (IPO) in the next 3-5 years, as it expects the company and markets to be ready by then.