Magellan & Aequs Partner for Aircraft Engine MRO Facility in India

Mumbai, Jul 25 (PTI) Canadian aerospace major Magellan is looking to jointly develop an aircraft engine MRO facility with Aequs at the latter's Belagavi Special Economic Zone in Karnataka and has signed an initial pact with it for this, the company said on Thursday.

The potential engine MRO business for the Indian market would focus on infrastructure development and cost advantages, among others, offering its services for both civil and military aircraft engines, it said.

The announcement for the potential engine MRO that will focus on infrastructure development, cost advantages, and strategic initiatives was made at the ongoing Farnborough International Airshow in the UK.

It coincides with the NDA government's announcement of certain incentives in the Union Budget for 2024-25 as part of efforts to boost maintenance, repair and overhaul (MRO) activities in the country.

The Toronto Stock-exchange-listed firm Magellan Aerospace provides complex assemblies and systems solutions to aircraft and engine manufacturers and defence and space agencies globally.

"Magellan Aerospace Corporation announces the signing of a Memorandum of Understanding (MOU) with Aequs Private Limited to explore the development of a business plan for a jointly-owned engine MRO business in the Aequs Special Economic Zone, at Belagavi in Karnataka," the statement said.

Under the terms of this MOU, Magellan and Aequs will work together to evaluate the market for business, commercial and military aircraft engine MRO services, to develop a comprehensive business plan that expands our existing partnership into the MRO sector through this exciting new project, it said.

India's aerospace sector has experienced growth over the past decade, driven by government initiatives including Make-in-India and UDAN Scheme, growth in the private sector, and increasing air traffic.

Air travel demand in India has surged, making it one of the fastest-growing aviation markets in the world, the statement said, adding that given the substantial growth of aerospace and aviation in India, the MRO sector is poised for significant development, the statement said.

"We have had a successful relationship with Magellan Aerospace for the past 15 years and partnered to build the most innovative and effective Aerospace ecosystem in India today at the Aequs SEZ. It is only logical we explore further opportunities to service the fast-growing business, civil and military aviation industry in India," said Aravind Melligeri, Chairman and CEO, Aequs.

In 2008, Aequs and Magellan set up an Airbus and Boeing-approved Aerospace Processing India (API) plant in a joint venture for OEMs aerospace surface treatments in India, according to the statement.

This venture has flourished and grown over the past 15 years to be the largest in India processing more than 1.5 million parts per year, it said.

The proposed facility, Melligeri said, is expected to have the ability to strip, rebuild, and test engines to help alleviate existing capacity constraints.

"This JV will leverage the vertically integrated aerospace manufacturing ecosystem at Aequs SEZ and coupled with Magellan's global presence and expertise across product lines, will be best suited to provide engine MRO services to domestic and international business, commercial and military aircraft users," he added.

"With soaring aerospace and aviation growth, this potential engine MRO venture for the Indian market will focus on infrastructure development, cost advantages, and strategic initiatives that are essential to realizing the sector's potential," said Phillip Underwood, President and CEO, Magellan Aerospace.

Magellan is committed to contributing to India's expertise in the aircraft engine MRO sector and helping grow this industry in the country, he said and added that "we are ready to meet the growing needs of our MRO customers with the cost-effective and quality solutions they have come to expect."

Founded in 2006, Aequs provides vertically integrated product solutions across the aerospace, toys, and consumer durable goods industries.

It currently operates manufacturing facilities across India, France, and the US.