Cashing-in on the ‘China plus 1’ trend, India-based aerospace components manufacturer Aequs plans to enter the aircraft seat business, a first for any domestic company.
Accordingly, the Karnataka-based privately held components’ manufacturer is setting up the country’s first aircraft seat manufacturing line at its Belgaum plant.
“We are currently setting up the line, establishing a dedicated facility for seat manufacturing. We have already signed up the first customer for this unit which will be a part of the aerospace ecosystem at the Belagavi Aerospace Cluster (BAC),” the company’s Chairman & CEO Aravind Melligeri told FE.
“We see the opportunity (in seating space), and it is currently dominated by Chinese suppliers and we feel very comfortable in venturing into this field and getting our piece of the pie.”
As per industry estimates, the global aircraft seating market was valued at $4.24 billion in 2020, and is projected to reach $8.21 billion by 2030, registering a CAGR of 6.9% from 2021 to 2030.
Besides, the company is looking at manufacturing plastics components that are used in the aircraft cabins.
Furthermore, Melligeri asked the government to consider a production-linked incentive (PLI) scheme for the sector to encourage companies to invest in R&D and to build capabilities.
Apart from aerospace components, Aequs manufactures and exports toys. It also makes consumer durables, mainly home appliances and cookware.
In the toy space, the company has been urging the Centre to implement a PLI scheme to give a fillip to toy manufacturing in the country and generate employment.
“The reason we have been pushing the government is because in this sector, we need a PLI. We need to be competitive. Otherwise, India will lose the battle, a battle which has only just begun.”
“We have been fighting for this opportunity to get more production out of India, and get more clients to India. Currently, there are disadvantages of manufacturing in India from an OEM (original equipment manufacturer) sourcing perspective, and that playing field needs to be levelled.”
At present, there are no PLIs for toy manufacturing in the country.
“The industry can generate a lot of employment for unskilled labour. It is a huge opportunity. For every $1 million of revenue, you need 100 people. So, if you imagine India to get to a billion dollars of exports in this industry, then it can have a huge impact.”
As of now, India exports less than $200 million worth of toys.
According to Melligeri, the Department for Promotion of Industry and Internal Trade (DPIIT) has recommended a PLI scheme and so has the Ministry of Commerce and Industry.
“The decision now rests with the Prime Minister’s Office and the Cabinet,” he added.