Macpower CNC Machines to invest Rs 100cr in aerospace and defence manufacturing in Gujarat
Macpower CNC Machines Ltd has taken a significant step forward in the manufacturing sector by submitting a Memorandum of Understanding (MoU) to the Gujarat Government for the upcoming Tenth Vibrant Gujarat Summit 2024. This MoU, aligning with the Gujarat Government Defence Policy, outlines an ambitious project worth up to ₹100 crore, focusing on setting up a CNC Machine manufacturing facility dedicated to aerospace and defence.
Timeline for Project Implementation
The initial setup of this state-of-the-art facility is expected to take 12-18 months following the finalization of land allocation by the state government. The company plans a gradual scale-up to full capacity, emphasizing backward integration to ensure self-sufficiency in quality supplies, including raw materials, casting, and patents.
Substantial Support from State Government
The Gujarat Government is set to extend considerable support to Macpower CNC Machines Ltd, including various subsidies. These include assistance in land procurement, interest subsidies, SGST (State GST) benefits, incentives in power tariffs, exemption in electricity duty, skill development support, and capital subsidy for R&D.
Macpower CNC Machines to Set Up State-of-the-Art Facility Under Gujarat’s Aerospace & Defence Policy
A First-of-Its-Kind Project under Aerospace & Defence Policy
Rupesh Mehta, Chairman & Managing Director of Macpower CNC Machines Ltd, expressed his enthusiasm for the project. He highlighted that this would be the first project under the new Aerospace & Defence Policy of the state government. The company is strategically focusing on scaling up this project post land receipt. With an increasing presence in the defence and aerospace sectors, this new facility is anticipated to significantly boost the company’s capacity and revenue, particularly from these sectors.
Backward Integration and Expansion Plans
The new facility, poised to be four times the size of Macpower CNC’s existing manufacturing unit, will be fully integrated backward, including an in-house foundry for high-quality castings and patents. While the revenue potential remains to be fully assessed, this expansion is a strategic move to become a significant player in the industry over the next decade.
Aiming for Enhanced Capacity and Strong Order Book
By the end of FY24, Macpower CNC Machines Ltd aims to reach an annual capacity of 2000 machines in its current facility. With a strong order book and consistent outpacing of order execution, the company is well-positioned for robust growth in the advanced manufacturing sector.