Wednesday, May 29, 2024

India’s Aequs Entering $4.24bn Aircraft Seating Market, Aiming To Challenge Chinese Dominance

By Staff Correspondent

In a move aimed at the burgeoning ‘China plus 1’ global supply trend, Aequs, the Karnataka-based aerospace components manufacturer, is venturing into the aircraft seat market, breaking new ground for an Indian company.

The firm, privately held, is in the midst of establishing the country’s first aircraft seat manufacturing line at its plant in Belgaum. Aravind Melligeri, Chairman and Chief Executive Officer, highlighted that the process of creating a dedicated seat manufacturing facility is underway within the Belagavi Aerospace Cluster (BAC), with the first customer already on board.

This manoeuvre positions Aequs to challenge Chinese suppliers’ prevailing dominance in a global aircraft seating market. Valued at $4.24 billion in 2020, this market has an optimistic outlook with projections to nearly double, reaching $8.21 billion by 2030, charting a compound annual growth rate (CAGR) of 6.9% from this year.

Aequs’s ambitious move reflects a broader shift within the nation’s manufacturing landscape, indicative of India’s desire to position itself as an alternative to China in various sectors. Melligeri’s announcement highlights Aequs’s entry into seating, and the company’s intention to manufacture plastic components utilised in aircraft cabins.

Furthermore, the firm has publicly encouraged the Government of India (GoI) to consider implementing production-linked incentives (PLI) to promote investment in research and development (R&D) and capacity building across the industry.

India’s proactive industrial policy, pushing towards PLIs, is part of a broader attempt to attract manufacturers looking to diversify supply chains in the wake of global geopolitical shifts. This strategy is seen as a crucial aspect of India’s economic growth plan. It aligns with the ambitions of companies like Aequs to carve out a more significant share of global markets.

Aequs’s entry into the aircraft seat manufacturing industry offers an intriguing case study of India’s emerging role in global manufacturing, representing not just an individual corporate strategy but a microcosm of a national drive to become a more formidable player on the world stage.

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