Getting skilled workers
Getting sufficient skilled workers remains a big challenge across the manufacturing industry. But Aequs took this up early on. "When we looked at Belgaum as the location for our SEZ, everyone was rooting for Bangalore saying that it had infrastructure and aerospace talent. Actually, there is no true aerospace industry ready talent available in the country today for the level that we need in terms of both volumes and capabilities. So, we thought we might as well build it from the scratch and in a sustainable manner. That's how Belgaum came into the picture. Within 100 km radius of this place, there are 8,000 to 10,000 engineering graduates passing out every year; and we are not even talking about diploma holders and ITIs. Of course, our absorption is nowhere around that level. There is immense availability of raw talent in this region. We have our internal training programmes where the selected candidates are skilled. Further, they are taken for on-the-job training. We knew from day one that we will have to train these people," he shares.

The way ahead
Aequs is today a US$ 100 million dollar company. Where does Melligeri see it five years down the line? "We have a stated objective to be a US$300 million dollar company by 2022. We are confident that we will get there. It's basically about execution. We are very focused on growing our business. We have added facilities spread over 300,000 sq ft over last one year. And we will continue to add more. That's part of the execution process. Also, we regularly keep investing new machines and technologies," he states.
Aequs has absorbed about US$20 million worth new orders in the last one year. So, while the existing programme is also growing, it is also adding up new business. "It's this combination that is getting us where we want to. We are the only machined detailed part partner for Airbus in India. That also makes one of the only 13 companies globally to do that. And that puts us in a position to win new packages," Melligeri explains.
Melligeri also sees that a lot of aerospace manufacturing business which is currently sourced from European and North American companies shifting to India in the next 15 years. "Economics will drive customers to re-evaluate. It is already happening. China is more concentrated on its internal programmes so that brings more focus on India. Even countries like Thailand, Malaysia and Vietnam have become very competitive in this space as their respective governments are opening up the market for aerospace players with all kinds of SOPs."

Being happy
Is Melligeri happy as entrepreneur considering where you started and where you have reached? He answers with a smile: "I cannot be happy as an entrepreneur. (Breaks into a laughter). That's not a definition of an entrepreneur. On a serious note, I am happy with what we have done so far. But, there is a lot more to be done. That's how I look at it. There are so many opportunities in front of us. It's all about choosing the right ones and investing in them. If I had got a contract of a million dollar five years back, I would have been excited. But, today, it doesn't. So, we need to get larger contracts to make an impact to the business." And what would he like to be remembered as ten years down the line? "As someone who came here, set to do something, did it and made a difference to the region," he says matter-of-factly.

END