But the Bangalore-based Maini Global Aerospace (MGA), a group company of the Rs 200 crore Maini Precision Products, has forayed into this space not tried by many. To expand its global aerospace clients list of 12, MGA has just entered into component supplying agreement with two leading aerospace companies in Europe: MTU Aero Engines of Germany and Marshall Aerospace of UK.
MTU is a leading aircraft engine manufacturer engaged in the development, manufacture, marketing and support of commercial and military aircraft engines. As per the agreement signed, MGA will be manufacturing engine components and sub assemblies for MTU’s engines used in civil and military aircraft. In the first phase MGA will be supplying 27 different types of engine components over a period of four years.
“It took us almost two years to sign this supply agreement after several rounds of inspections and testing of our capabilities by MTU engineers,” Maini Precision Products Managing Director Gautam Maini told Deccan Herald. “In the aerospace industry it is quite normal to take so much of time as buyers will have to be 100 per cent sure about the precise quality of the component.”
Maini also had to do equal amount of due diligence to win a supply contract from Marshall, a UK-based company that is a tier one supplier to Boeing’s military aircraft used by defence forces in many countries in the world. In the first phase of the contract Marshall will buy 70 different types of structural products from MGA over a period of time.
“Since these two companies are entering India for the first time for sourcing, our agreements also signify India’s achievements in the field of precision engineering,” said MGA Chief executive Officer Naresh Palta who has worked with Hindustan Aeronautics Ltd for many years. MGA is in the process of building a new factory on a 15 acre land near Neelamangala, Bangalore, for the aerospace business and plans to invest around Rs 25 crore for new machines and new facilities, he said.
The Maini group created MGA for the aerospace business in 2009. It currently has12 clients like Snecma, BAE System, GE Aviation, HAL, etc, manufacturers over 900 components and has reached annual turnover of around Rs 20 crore. Said Maini, “We are currently at the stage of laying the foundation for a robust aerospace business. It takes five to seven years to reach the critical mass and the breakeven point in this trade.” MGA is hopeful of reaching its revenue target of Rs 50 crore in the next financial year, Maini said.