QuEST invests $25mn to expand into aerospace manufacturing

QuEST, an engineering services provider based out of Bangalore, is investing $25 million over the next three years to expand into aerospace manufacturing through a fully-owned subsidiary.

QuEST Machining and Manufacturing, the subsidiary will provide precision machined components to aerospace companies.

The company, which had a turnover of $28 million in FY05-06, said funds for the current expansion had been generated through internal accruals.

To fund its next phase of expansion in aerospace component manufacturing, the company is "planning to go for an IPO in the third or fourth quarter of next year to support our future expansion," QuEST Machining and Manufacturing president and CEO Aravind Melligeri said.

The investment that the company has announced will go towards setting up a 20,000-square feet machining facility in Bangalore.

While supporting major global aero-structure and aero-engine original equipment manufacturers, the facility will have a cell dedicated to Magellan Aerospace, a Canada-based supplier and manufacturer of aerostructure components.

The company has also signed a 10-year strategic agreement with Magellan for supplying components.

At present, QuEST has a headcount of 950 engineers with 750 of them based out of its development centre in Bangalore.

For the fiscal 2006-07, the company has targeted $40 million in turnover, up 43 per cent on the previous year.