In a first for a private company in India, Skanda Aerospace Technology Pvt Ltd (SATPL) on Thursday announced plans to contribute Rs 250 crore to set up a gearbox manufacturing office in Hyderabad. SATPL is a joint venture (JV) between Hyderabad-based Raghu Vamsi Machine Tools (RMVT) and Texas-based Rave Gears LLC. This production facility will be India’s most memorable private company, with the capability to manufacture gears and gearboxes for helicopters. Given the growing demand for helicopters manufactured by Hindustan Aeronautics Ltd (HAL), there will likely be a critical demand for gearboxes and transmissions.
Rave Gears has also agreed to supply Skanda Aerospace with assured annual orders of up to $9 million.
Rave Gears, which will act as technology provider, will own 55% of SATPL, while RVMT & Investors will own the remaining 45%. The JV company will invest Rs 250 crore and provide jobs for 1,000 workers over the next 3-5 years.
Rave Gears is a designer, manufacturer and integrator of precision gear and transmission systems for aerospace, defense, Formula 1 and industrial customers worldwide. Rave Gears customers include major original equipment manufacturers (OEMs) such as Boeing, Bell, Collins, BAE Systems, Rolls-Royce, McLaren and Nascar.
According to its managing director Vamsi Vikas Ganesula, Raghu Vamsi has almost doubled its turnover in each of the past three years. The total turnover stood at around Rs 150 crore last year.
Raghu Vamsi is a supplier of high precision products and sub-assemblies for OEMs such as Boeing, GE Aviation, Eaton and Honeywell. He has been in the precision manufacturing business for 15 years and envisions an expected market size of $937 million.
Like most companies in the precision manufacturing industry, Raghu Vamsi has found growing to be a capital-intensive business, with each precision manufacturing machine costing around $3 million.
Summary of news:
- Skanda Aerospace Technology, first private company to manufacture gears for helicopters
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