Defence PSU BEML today announced its plans to invest Rs 360 crore for setting up an aerospace manufacturing complex here and said the company is scouting for acquisition of small firms to strengthen this business vertical.
The plant would come up on a 25-acre plot in the aerospace special economic zone at Devanahally on city outskirts, BEML's Chairman and Managing Director V R S Natarajan told reporters here.
"This manufacturing facility is expected to be operational in 2012-13," he said.
Company officials said the aerospace division would manufacture gears for helicopters, jigs for aircraft structures, machining of aerospace components, fabrication of structural sub-assemblies for Su-30 aircraft and a variety of ground support and ground handling equipment.
Natarajan said BEML was looking out for opportunities to acquire small aerospace firms to strengthen its business in the field.
The company saw tremendous potential in the defence offsets business, he said.
BEML's aerospace business would go up to Rs 100 crore annually in three years, and grow to become Rs 1,000 crore business by 2016-17.
Natarajan clarified BEML had no plans to compete with Hindustan Aeronautics Limited in the field of aerospace; its role would be "complementary and supplementary".
BEML currently has a order book valued at Rs 4,300 crore, he added.
