The company sources more than 70 percent of its raw material from China but intends to reduce the dependence on the neighbouring country by tapping domestic companies.
Aeroflex Industries is aiming for an annual turnover of nearly Rs 1,000 crore in five years, managing director Asad Daud said in an interaction with Moneycontrol. That works out to a compound annual growth rate of 30 percent.
The company, which secured backing from marquee investors like Ashish Kacholia and Jagdish Master ahead of its initial public offering (IPO), supplies high-end and specialised hoses as part of its “flexible flow solutions” to industries ranging from the defence sector to aerospace and space ventures. It has also contributed to the fueling of Indian Space Research Organisation’s ongoing Chandrayaan Mission Project that aims to soft-land a rover on the Moon.
The company is looking to focus on the defence sector with the intent to replace rubber-based flow solutions in the segment. This market, though still in its nascent stage in India, is the company’s targeted area for transformation.
Daud also said that the company planned to diversify across geographies. This initiative stems from the significant impact observed following the Russian-Ukraine crisis on the company’s revenue during FY23. In the light of this, the company is committed to maintaining an 80:20 revenue mix, with 80 percent of its revenue coming from exports and the remaining 20 percent from the domestic market.
The company, which sources more than 70 percent of its raw material product requirements from China, also intends to reduce the dependence on the neighbouring country by tapping domestic companies.