Industrial Update – Newsletter – April 2025
IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India
Precision manufacturing in the aerospace sector requires high-quality, intricate components that meet stringent safety and performance standards – this is due to their critical nature, where even minor errors can lead to significant safety risks. Qualifying for aerospace manufacturing therefore, requires manufacturers to meet stringent industry standards and obtaining certifications such as AS 9100, NADCAP & others. Components for Aerospace are also typically categorized into 3 classes – Class A (most critical – e.g. critical engine parts, landing gear, etc.), Class B, and Class C based on their criticality to the safety and functionality.
Majority of precision manufacturing in this sector is concentrated in North America and Europe – driven by giants such as Boeing, Airbus, Dassault, Safran, GE, Lockheed Martin, Rolls Royce and their extensive supplier ecosystems. India, with the presence of HAL, has seen an ecosystem develop in and around Bangalore, which is now increasingly being tapped by the global players. Relatively low volumes combined with stringent quality requirements necessitate high-end precision machinery, additional heat/surface treatments, rigorous documentation and testing processes. This in turn enables higher margins for companies in this space
The demand for aerospace components is fueled by broader growth in the aerospace industry. Of the current global fleet of ~28,000 commercial aircraft, ~5,500 are expected to be retired between 2024-2028. Additionally, the global fleet of defense aircrafts at ~31,000 is expanding amid rising geopolitical tensions.
Domestically, rising incomes combined with govt support on policy & infrastructure (150 new airports), has led to a sharp rise in passenger traffic; driving airlines to place large aircraft orders (currently Indigo, Air India & Akasa together have ~2,000 aircraft on order). Potential for domestic manufacturing & MRO combined with increased sourcing from India for global markets is driving the order book positions of domestic aerospace component companies. IPOs of Azad Engg & Unimech Aerospace and transactions in Maini Precision, JJG Aero and Rangsons Aero indicate the high degree of investor interest in this sector
Key Players
Some recent transactions
| Apr’25 | Botlab Dynamics | The drone manufacturer raised ~₹85 Cr. in a fundraise led by Dharna Capital |
| Apr’25 | Jupiter International | ValueQuest Advisors invested ₹500 Cr. in the solar cell manufacturer |
| Apr’25 | Rebel Foods | Qatar Investment Fund invested ~₹213 Cr. in the cloud kitchen unicorn |
| Apr’25 | Goldi Solar | Havells invested ₹600 Cr. in the solar EPC player |
| Apr’25 | Garuda Aerospace | The drone manufacturing company raised ~₹100 Cr. in a fundraise led by Venture Catalysts |
| Apr’25 | Sedemac Mechatronics | The Infosys Family office Catamaran invested an undisclosed sum in the Auto comp manufacturer |
Recent News
- Apr’25 saw significant global turmoil as US imposed – then suspended (partly)- tariffs on a wide range of goods. Currently, there is a 10% levy on products from most countries. China has been hit with a 145% tariff; China retaliated with 125% tariffs on US goods
- Uncertainty on trade policies weighed in on global markets – Crude oil prices declined (from ~US$ 70 in March per barrel to ~ US$ 63), weakening of the US dollar (By ~3-4% against major global currencies), rise in bond yields (from 3.99% to 4.42% on 10-Yr bills) and corrections in equity markets (average fall of 3-5%)
- The global uncertainty led IMF to revise downwards, GDP growth rates for FY26 – from 3.3% to 2.8% for the world; China from 4.6% to 4%, US from 2.7% to 1.8% and India from 6.5% to 6.2%
- India’s manufacturing PMI grew to 58.4 in April from 58.1 in the previous month; a PMI over 50 signifies growth
IMAP Industrials Index & Valuation of sub-segments
Commodity Prices Index
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