Aerospace powerhouse Aequs has officially formalized a landmark agreement with the Tamil Nadu government to establish a high-tech manufacturing cluster. This strategic move involves a total investment commitment of 4,000 crore INR, with Aequs leading 1,900 crore INR of the capital infusion over the next decade. The project is centered at the SIPCOT Shoolagiri industrial estate in Krishnagiri. It marks the launch of India’s first fully vertically integrated aerospace and defense cluster focused on aero-engines. This facility will localize advanced capabilities for producing engine components, gearbox systems, and landing gear—segments that typically command significantly higher profit margins. Market data as of February 2026 indicates that the Indian aerospace and defense sector is expanding at an annual rate of 10% to 15%. Aequs is positioning itself to capture this growth, reporting a 51% year-on-year revenue surge in its latest quarterly results. The firm currently maintains a robust aerospace order book valued at 814 million USD. The investment will be deployed in phases, starting with an initial 200–300 crore INR over the first three years. Construction is slated to begin within the next year, with the first commercial shipments of engine parts expected by the end of FY27 or early FY28. Global demand for aircraft engines remains high, with the market projected to reach 97.37 billion USD in 2026. However, global supply chains are currently facing a 30% shortfall in production targets. By establishing this domestic hub, Aequs aims to bridge this gap while creating 7,000 high-quality jobs in the region. The facility will span 250 acres and feature shared industrial infrastructure, including R&D centers and precision machining units. This ecosystem approach is designed to streamline exports, which already account for 90% of the company's revenue. Aequs is targeting a long-term EBITDA margin of 20%, supported by this shift into complex engine assemblies. The project also retains the flexibility to integrate Unmanned Aerial Vehicle (UAV) production, aligning with India’s broader "Make in India" defense modernization goals. [Aerospace Manufacturing Expansion](https://www.youtube.com/watch?v=tJOWbX3Vg8k) This video features an interview with the CEO of Aequs discussing the company's recent 20% growth and the strategic importance of expanding aerospace capacity in India. http://googleusercontent.com/youtube_content/0