Aerospace & Defense Company for Sale in Bangalore, India

- 2 major government clients, Indian Airforce and Hindustan Aeronautics Limited.
- Work happens in 3 bases of Indian Airforce, Pune, Nashik and Jamnagar.
- The business also works with 4 divisions of Hindustan Aeronautics Limited, Bengaluru (aircraft division), Bengaluru (overhaul division), Nashik and Lucknow.
- End to end reverse engineering and manufacturing is also done.
- Until a couple of years back, India used to import test equipment from Russia, France etc. Under the 'Make in India' initiative, we started reverse engineering test equipment based on available non-translated documents and manufactured complete test sets in-house.
- The revenue model is divided into 2 parts - prototypes and repeat orders. Once any company develops the prototype, any repeat order for that prototype will be done by the same company for life.
- So, basically we make less margins on prototype development (around 20% EBITDA) due to R&D and design costs. However, on repeat orders we make healthy 40-45% EBITDA as there is no R&D, design costs and products directly go into production.
- The company was initially started by someone else 24 years ago as an electronics repair and maintenance business.
- 14 years ago, upon the death of the previous promoter, the current promoters took over the business. After takeover, we tried to make a foray into the aerospace & defense industry, which took well over 7-8 years to get our foot in the door.
- Business began to pick up seven years back, a couple of years after the 'Make in India' initiative was launched.
- We have delivered multiple prototypes and now we have started getting repeat orders for these prototypes regularly and is expected to be a large part of the business revenue in the years to come.
- We have also received an appreciation certificate from the honorable Prime Minister of India, Shri Narendra Modi, for development of a test equipment which was indigenized by us and reduced the cost of the equipment by 90% and testing time by 87.5%.
- Also received an appreciation letter from defense secretary Dr. Ajay Kumar for the deployment of our team on site to undertake rectification on a critical item tester.
- The current promoter of the company is not a technocrat and is dependent on the team to carry on the day-to-day business. He owns other businesses including liquor distribution, liquor logistics and real estate. He has been funding this business for the past 14 years.