• Industry growth drivers: India currently accounts for about 2% of the global commercial aerospace supply chain, with domestic aviation expected to reach roughly 10% of the global market in the coming decade. The sector is supported by OEM order backlogs filled through 2035, post-COVID Western labor shortages, and rising contract sizes exceeding $100 million.
• Aequs growth targets: Aequs has guided for 4x to 6x overall growth and 4x to 5x growth in its aerospace business over the next five years. Management noted that investor capital is readily available to support this expansion, making long-term operational execution the primary focus.
• Capital and qualifications: Aerospace manufacturing requires heavy, patient capital investment, as demonstrated by a $30 million hydraulic press taking 10 to 12 years to break even. Scaling integrated sub-systems also requires extensive certifications, with Aequs holding over 90 approvals for automated surface treatments on parts up to 4 meters.
• Supply chain management: Geopolitical events and shipping issues in the Red Sea and West Asia caused 4 to 5 weeks of material delays, pushing working capital cycles from 120 to 150 days and requiring 3 to 4 months of buffer planning. To de-risk logistics, the company is driving vertical integration at its Belgaum cluster, where it currently produces about 10% of global aircraft wheels.