Source: http://www.bombaynews.net/story/565523
Global aerospace majors such as Europe's SABCA and Canada's Magellan Aerospace will set up shops in India's first special economic zone (SEZ) devoted exclusively for the aviation industry here.
Karnataka Chief Minister B.S. Yeddyurappa Friday inaugurated the aerospace engineering and manufacturing SEZ, set up by QuEST Global, one of the leading engineering and consultancy firms in the world.
'The QuEST Global SEZ in Belgaum has opened up newer avenues to attract foreign investment in the manufacturing space. We are now poised to offer expertise through competent local talent and corporate commitment,' the chief minister said on the occasion.
The SEZ, spread over 300 acres, currently houses an engineering services facility, a precision machining facility and a sheet metal facility.
Civil Aviation Minister Praful Patel, also present at the launch, said India's aviation industry was on growth path.
'Indian aviation industry is being watched closely by all global majors and it on a steady growth path,' Patel said.
'We fully support the vision of entities like QuEST Global, which by setting up this project has displayed its commitment not only towards economic growth, but also to the development of local areas,' Patel added.
QuEST has signed agreements with three global corporations - SABCA, Magellan Aerospace and France's Farinia SA - to set up units in the SEZ.
SABCA will manufacturer metallic parts for Airbus aircraft in its Belgaum unit, while Magellan will set up a facility to manufacture components and sub assemblies for aero engines.
Foundry and forging major Farinia will establish an aerospace forging facility.
'The initial investment for the SEZ project is Rs.150 crore. We are looking at long-term gains,' Aravind Melligeri, chairman and co-founder of QuEST Global said.
'We are looking forward to creating more than 7,000 jobs locally and infusing $500 million into the economy in the next 10 years,' he added.
Showing posts with label QUEST. Show all posts
Showing posts with label QUEST. Show all posts
Monday, November 16, 2009
Tuesday, October 27, 2009
Belgaum will be next aerospace centre, bets QUEST’s Melligeri
Source: http://www.livemint.com/2009/10/26195215/Belgaum-will-be-next-aerospace.html?h=B
QUEST has set up a 300-acre SEZ for aerospace manufacturing in the town bordering Maharashtra, around 500km from Bangalore, among the first such facilities to begin operations
K. Raghu
Bangalore: Aravind Melligeri is betting against conventional wisdom.
Bangalore is India’s aerospace hub, where the country’s military plane maker Hindustan Aeronautics Ltd (HAL) is based and the work on a homegrown plane and space research is centred. This, in turn, means the bulk of the vendors with the ability to make precision parts and systems for aeroplanes, are located around this city.
But for Melligeri, co-founder of Quality Engineering and Software Technologies Pvt. Ltd, or QUEST, an engineering services firm, the next aerospace manufacturing destination is Belgaum.
QUEST has set up a 300-acre special economic zone (SEZ) for aerospace manufacturing in the town bordering Maharashtra, around 500km from Bangalore, among the first such facilities to begin operations.
“Belgaum has a manufacturing culture. Historically it was the automotive backend for Pune,” says Melligeri. “It has over 300 foundries and machining shops. It is also a strategic location.”
In manufacturing, “logistics is a key and Belgaum is equidistant from Mumbai, Hyderabad and Bangalore and around two hours’ drive from three airports, including Goa”, he says.
Not everyone is buying the idea. A.K. Saxena, managing director of Navv Avia Technologies Pvt. Ltd, an aerospace consultancy, says the distance and skills needed for the aerospace industry will be an issue.
“They may be right. But the big names may not go to Belgaum because of the distance, they would prefer the known cities,” says Saxena, a former managing director of HAL.
For QUEST, which has invested Rs150 crore in the SEZ and three factories including a joint venture with Magellan Aerospace Ltd, a vendor for plane makers such as Airbus SAS and Boeing Co., being away from the big cities is an advantage.
“People are disciplined and there is enough talent to train,” says Melligeri. “At the end of the day, you don’t see an aerospace manufacturing facility in London or New York.”
For QUEST, founded in 1997 by Melligeri and partner Ajit Prabhu as a services firm offering engineering design for power generation equipment makers, aerospace manufacturing is just a three-year story. Prabhu is in the US, leading the engineering services operations, while Melligeri takes care of manufacturing.
The company got into aerospace design services after venture capital firm Carlyle Group invested $6 million, (around Rs28 crore today), in 2003. In 2007, both the promoters bought back Carlyle’s stake, to expand into manufacturing, as they saw firms such as Airbus and Boeing outsource more work to low-cost countries such as India. Melligeri did not reveal how much they paid to buy back the stake.
QUEST’s focus also coincided with India becoming a major market for global aerospace and defence firms. India will import arms, including fighter planes and helicopters worth at least $30 billion by 2012, according to the Associated Chambers of Commerce and Industry of India a lobby of trade associations.
A third of this is expected to be spent in India by foreign firms, following a 2005 offsets policy that mandates foreign contractors to source components and systems from local vendors for at least 30% of the value of orders worth at least Rs300 crore. This is to boost the local aerospace industry, which is still nascent, despite designing a few homegrown planes and HAL’s history of building fighter planes under licence.
India’s aerospace manufacturing exports in the year to March were around $200 million. HAL accounted for more than half of that figure, according to Melligeri. In comparison, the global commercial aerospace industry is worth $90 billion a year.
“There may be small suppliers which HAL has built, but that is not really scalable. For that, it needs a supply chain,” he says. QUEST is building the supply chain, even asking rival firms to set up units, so scale could be built to service global customers and tap the business opportunity they present.
A supply chain expert says the move by QUEST to offer manufacturing components and systems would help it to battle competition from other low-cost countries such as China, the Philippines and Malaysia.
“In the next few years, only service providers who provide end-to-end (solutions) would be preferred. For high end (engineering) services, you need to understand manufacturing,” says Roger Moser, who heads the chair on sourcing and supply management at the Indian Institute of Management, Bangalore. The chair has been endowed by the European Aeronautic, Defence and Space Co., or EADS, the parent of Airbus, and Supply Chain Management Institute.
“In the Indian aerospace industry, where you have so many small players that hurts its efficiencies, you need to have a few companies such as QUEST that will act as system integrators at the small level,” he says.
But to achieve that, QUEST is raising additional funds of $50 million by December to invest in its operations. Melligeri did not reveal from whom the money is being raised.
In the year ended March, QUEST earned revenue of $85 million, of which manufacturing contributed $6 million. In fiscal 2010, it expects revenue will grow to $110 million, of which manufacturing will be $10 million.
“Manufacturing, with a lower base, will grow 80% in the next three years. As for engineering services, it will be around 30% growth a year. It is a fairly good target and aligned with strategic customers. They look at us for giving the next solution,” says Melligeri.
Bangalore is India’s aerospace hub, where the country’s military plane maker Hindustan Aeronautics Ltd (HAL) is based and the work on a homegrown plane and space research is centred. This, in turn, means the bulk of the vendors with the ability to make precision parts and systems for aeroplanes, are located around this city.
Defying conventions: QUEST’s co-founder Aravind Melligeri. Harikrishna Katragadda /Mint
QUEST has set up a 300-acre special economic zone (SEZ) for aerospace manufacturing in the town bordering Maharashtra, around 500km from Bangalore, among the first such facilities to begin operations.
“Belgaum has a manufacturing culture. Historically it was the automotive backend for Pune,” says Melligeri. “It has over 300 foundries and machining shops. It is also a strategic location.”
In manufacturing, “logistics is a key and Belgaum is equidistant from Mumbai, Hyderabad and Bangalore and around two hours’ drive from three airports, including Goa”, he says.
“They may be right. But the big names may not go to Belgaum because of the distance, they would prefer the known cities,” says Saxena, a former managing director of HAL.
For QUEST, which has invested Rs150 crore in the SEZ and three factories including a joint venture with Magellan Aerospace Ltd, a vendor for plane makers such as Airbus SAS and Boeing Co., being away from the big cities is an advantage.
“People are disciplined and there is enough talent to train,” says Melligeri. “At the end of the day, you don’t see an aerospace manufacturing facility in London or New York.”
For QUEST, founded in 1997 by Melligeri and partner Ajit Prabhu as a services firm offering engineering design for power generation equipment makers, aerospace manufacturing is just a three-year story. Prabhu is in the US, leading the engineering services operations, while Melligeri takes care of manufacturing.
The company got into aerospace design services after venture capital firm Carlyle Group invested $6 million, (around Rs28 crore today), in 2003. In 2007, both the promoters bought back Carlyle’s stake, to expand into manufacturing, as they saw firms such as Airbus and Boeing outsource more work to low-cost countries such as India. Melligeri did not reveal how much they paid to buy back the stake.
QUEST’s focus also coincided with India becoming a major market for global aerospace and defence firms. India will import arms, including fighter planes and helicopters worth at least $30 billion by 2012, according to the Associated Chambers of Commerce and Industry of India a lobby of trade associations.
A third of this is expected to be spent in India by foreign firms, following a 2005 offsets policy that mandates foreign contractors to source components and systems from local vendors for at least 30% of the value of orders worth at least Rs300 crore. This is to boost the local aerospace industry, which is still nascent, despite designing a few homegrown planes and HAL’s history of building fighter planes under licence.
India’s aerospace manufacturing exports in the year to March were around $200 million. HAL accounted for more than half of that figure, according to Melligeri. In comparison, the global commercial aerospace industry is worth $90 billion a year.
“There may be small suppliers which HAL has built, but that is not really scalable. For that, it needs a supply chain,” he says. QUEST is building the supply chain, even asking rival firms to set up units, so scale could be built to service global customers and tap the business opportunity they present.
A supply chain expert says the move by QUEST to offer manufacturing components and systems would help it to battle competition from other low-cost countries such as China, the Philippines and Malaysia.
“In the next few years, only service providers who provide end-to-end (solutions) would be preferred. For high end (engineering) services, you need to understand manufacturing,” says Roger Moser, who heads the chair on sourcing and supply management at the Indian Institute of Management, Bangalore. The chair has been endowed by the European Aeronautic, Defence and Space Co., or EADS, the parent of Airbus, and Supply Chain Management Institute.
“In the Indian aerospace industry, where you have so many small players that hurts its efficiencies, you need to have a few companies such as QUEST that will act as system integrators at the small level,” he says.
But to achieve that, QUEST is raising additional funds of $50 million by December to invest in its operations. Melligeri did not reveal from whom the money is being raised.
In the year ended March, QUEST earned revenue of $85 million, of which manufacturing contributed $6 million. In fiscal 2010, it expects revenue will grow to $110 million, of which manufacturing will be $10 million.
“Manufacturing, with a lower base, will grow 80% in the next three years. As for engineering services, it will be around 30% growth a year. It is a fairly good target and aligned with strategic customers. They look at us for giving the next solution,” says Melligeri.
Wednesday, February 18, 2009
Textron Systems and QuEST Global Begin Cooperation on SEZ in Belgaum
Source: http://machinist.in/index.php?option=com_content&task=view&id=1926&Itemid=2
Aero India 2009, Bangalore — Textron Systems, a Textron Inc. (NYSE: TXT) company, and QuEST Global, a leading provider of outsourced engineering services and manufacturing, today announced that the two companies are working together on the development of the QuEST Global Special Economic Zone (SEZ) in Belgaum, Karnataka, India.
The SEZ, endorsed by the Ministry of Commerce & Industry, covers 300 acres and is focused on Precision Engineering.
Aero India 2009, Bangalore — Textron Systems, a Textron Inc. (NYSE: TXT) company, and QuEST Global, a leading provider of outsourced engineering services and manufacturing, today announced that the two companies are working together on the development of the QuEST Global Special Economic Zone (SEZ) in Belgaum, Karnataka, India.
The SEZ, endorsed by the Ministry of Commerce & Industry, covers 300 acres and is focused on Precision Engineering.
As a sector-specific economic zone, this area will provide build-to-suit requirements to companies seeking to establish businesses and manufacturing facilities in the region by providing a world-class infrastructure, particularly for the aerospace and defense, industrial and automotive industries. Development of the SEZ, currently in Phase I, began in January 2009.
“With growing demands for state-of-the-art defense services and solutions, India is a key country in a region that is important to our international growth,” stated Frank Tempesta, President and CEO, Textron Systems. “We look forward to partnering with the Indian Government, the Indian Armed Forces and QuEST in strengthening India’s defenses.”
“This relationship marks the beginning of the Aerospace & Defense industry’s development at the SEZ,” said Aravind Melligeri, Chairman and Co-founder, QuEST Global. “This SEZ provides a platform for Foreign Direct Investments, products and services in support of the Indian defense industry.”
Under the terms and conditions of a Memorandum of Understanding, Textron Systems and QuEST Global will work together to develop the manufacturing capabilities within the SEZ.
Monday, October 13, 2008
QuEST Global gets Govt. of India Notification to Lease out Land at its Precision Engineering SEZ at Belgaum
Sourec: http://www.businesswireindia.com/PressRelease.asp?b2mid=17178
Bangalore, Karnataka, India, Monday, October 13, 2008 -- (Business Wire India)
QuEST Global, a leading provider of outsourced engineering services and manufacturing, announced today that it has received the Government of India notification for its SEZ (Special Economic Zone) in Belgaum, Karnataka. QuEST Global has also received approval for the units that are coming up in phase 1 of the SEZ.
QuEST Global’s SEZ will be a sector specific precision engineering SEZ, covering over 300 acres of land in the initial phase. This notification allows QuEST Global to lease out the land and also provide build-to-suit requirements in the SEZ to other prospects who would like to set up their business units in QuEST Global’s precision engineering SEZ. The SEZ will provide world class infrastructure in the industrial estate, concentrating mainly on aerospace and automotive related industries. Phase 1 of the SEZ will be operational by December 2008, and Phase 2 is expected to be operational by June 2009.
QuEST Global SEZ has already signed up with 3 clients, namely QuEST Global Engineering, QuEST Global Manufacturing and Aerospace Processing India (API),a joint venture between QuEST and Magellan Aerospace for establishing special aerospace processing capabilities in India.
At the SEZ in Belgaum, API’s facility of 17,500 sq. ft. will support activities such as chromic acid anodizing line, titanium etching, shot peen, paint and primer booth, MPI and FPI in the initial phase.QuEST Global Manufacturing will expand its existing precision machining operations that are currently set up in Bangalore and QuEST Global Engineering will set up an engineering services facility, to provide low cost engineering services.
By starting operations in Belgaum which is a Tier 3 town in India, QuEST Global Engineering is pioneering the way to ensure low cost delivery of engineering in the future also.QuEST Global has obtained specific unit approvals for all the 3 units along with a sanction for the industrial layout.
“Belgaum, as a hub for setting up a supply chain for the Aerospace industry, is the perfect destination as it is ideally located in the industrial heartland of Karnataka, Maharashtra and Goa, thereby providing access to a large number of manufacturing and machining talent.It is also excellently located in terms of logistics, being just off the Golden Quadrilateral NH4 highway (Bangalore-Pune-Mumbai highway), with proximity to 3 sea ports (Goa, Karwar and Mumbai) and 3 airports (Belgaum, Hubli and Kolhapur).In addition, the presence of a number of educational institutes in the region, will ensure a good supply of engineers at all levels. Along with engineering services and manufacturing, QuEST now has a precision engineering SEZ, of which are very few in the country.This move demonstrates QuEST Global’s thought leadership, which sets it apart from its competitors.” said Aravind Melligeri, Chairman & Co-founder, QuEST.
About QuEST
QuEST is a leading provider of outsourced engineering services and manufacturing. The company helps customers in the aerospace, power generation, oil & gas, civil structures, industrial products, and transportation verticals to cut product development costs, shorten lead times, extend capacity and maximize engineering resources availability by providing support across the complete product life cycle from design and modeling through analysis, prototyping, automation, data documentation, instrumentation and controls, embedded systems development, manufacturing support, vendor management, and in-house precision machining. Through our Global Product Development framework and our on-site/off-shore/on-shore models, we leverage our local presence and global reach to support globalization initiatives for our customers. QuEST employs over 1500 people and has delivery centers in India, USA, Italy, Japan and footprints in UK, Germany, France, Spain and China. For more information, visit www.quest-global.com.
Bangalore, Karnataka, India, Monday, October 13, 2008 -- (Business Wire India)
QuEST Global, a leading provider of outsourced engineering services and manufacturing, announced today that it has received the Government of India notification for its SEZ (Special Economic Zone) in Belgaum, Karnataka. QuEST Global has also received approval for the units that are coming up in phase 1 of the SEZ.
QuEST Global’s SEZ will be a sector specific precision engineering SEZ, covering over 300 acres of land in the initial phase. This notification allows QuEST Global to lease out the land and also provide build-to-suit requirements in the SEZ to other prospects who would like to set up their business units in QuEST Global’s precision engineering SEZ. The SEZ will provide world class infrastructure in the industrial estate, concentrating mainly on aerospace and automotive related industries. Phase 1 of the SEZ will be operational by December 2008, and Phase 2 is expected to be operational by June 2009.
QuEST Global SEZ has already signed up with 3 clients, namely QuEST Global Engineering, QuEST Global Manufacturing and Aerospace Processing India (API),a joint venture between QuEST and Magellan Aerospace for establishing special aerospace processing capabilities in India.
At the SEZ in Belgaum, API’s facility of 17,500 sq. ft. will support activities such as chromic acid anodizing line, titanium etching, shot peen, paint and primer booth, MPI and FPI in the initial phase.QuEST Global Manufacturing will expand its existing precision machining operations that are currently set up in Bangalore and QuEST Global Engineering will set up an engineering services facility, to provide low cost engineering services.
By starting operations in Belgaum which is a Tier 3 town in India, QuEST Global Engineering is pioneering the way to ensure low cost delivery of engineering in the future also.QuEST Global has obtained specific unit approvals for all the 3 units along with a sanction for the industrial layout.
“Belgaum, as a hub for setting up a supply chain for the Aerospace industry, is the perfect destination as it is ideally located in the industrial heartland of Karnataka, Maharashtra and Goa, thereby providing access to a large number of manufacturing and machining talent.It is also excellently located in terms of logistics, being just off the Golden Quadrilateral NH4 highway (Bangalore-Pune-Mumbai highway), with proximity to 3 sea ports (Goa, Karwar and Mumbai) and 3 airports (Belgaum, Hubli and Kolhapur).In addition, the presence of a number of educational institutes in the region, will ensure a good supply of engineers at all levels. Along with engineering services and manufacturing, QuEST now has a precision engineering SEZ, of which are very few in the country.This move demonstrates QuEST Global’s thought leadership, which sets it apart from its competitors.” said Aravind Melligeri, Chairman & Co-founder, QuEST.
About QuEST
QuEST is a leading provider of outsourced engineering services and manufacturing. The company helps customers in the aerospace, power generation, oil & gas, civil structures, industrial products, and transportation verticals to cut product development costs, shorten lead times, extend capacity and maximize engineering resources availability by providing support across the complete product life cycle from design and modeling through analysis, prototyping, automation, data documentation, instrumentation and controls, embedded systems development, manufacturing support, vendor management, and in-house precision machining. Through our Global Product Development framework and our on-site/off-shore/on-shore models, we leverage our local presence and global reach to support globalization initiatives for our customers. QuEST employs over 1500 people and has delivery centers in India, USA, Italy, Japan and footprints in UK, Germany, France, Spain and China. For more information, visit www.quest-global.com.
Thursday, July 17, 2008
QuEST to set-up sheet metal fabrication facility
Press Trust of India / Mumbai July 17, 2008, 14:46 IST
QuEST, a leading provider of outsourced engineering services and manufacturing today announced that it was setting up a dedicated sheet metal fabricator facility for aerospace in Karnataka.
The facility is being set up by QuEST's wholly-owned subsidiary, QuEST manufacturing in its 300-acre SEZ in Belgaum, Karnataka, a press release issued here stated.
The facility would be in close proximity to machining and special processing and would support both engine and structural sheet metal forming.
Phase-1 of this facility would consist of sheet metal-cutting, brake forming, hydro forming/fluid forming, heat treatment for aluminium and assembly operations like riveting, the release said.
QuEST's Chairman and Co-founder, Aravind Melligeri, said that "setting up of the sheet metal processing facility will enable QuEST and its curent customers to graduate towards integrated sourcing and assemblies. It reiterates our commitment to set up an ecosystem for the supply chain catering to global erospace industry requirement."
QuEST has appointed Nicholas Belbin, as an advisory Board member at QuEST manufacturing to leverage his extensive experience in aerospace sheet metal processing.
QuEST, a leading provider of outsourced engineering services and manufacturing today announced that it was setting up a dedicated sheet metal fabricator facility for aerospace in Karnataka.
The facility is being set up by QuEST's wholly-owned subsidiary, QuEST manufacturing in its 300-acre SEZ in Belgaum, Karnataka, a press release issued here stated.
The facility would be in close proximity to machining and special processing and would support both engine and structural sheet metal forming.
Phase-1 of this facility would consist of sheet metal-cutting, brake forming, hydro forming/fluid forming, heat treatment for aluminium and assembly operations like riveting, the release said.
QuEST's Chairman and Co-founder, Aravind Melligeri, said that "setting up of the sheet metal processing facility will enable QuEST and its curent customers to graduate towards integrated sourcing and assemblies. It reiterates our commitment to set up an ecosystem for the supply chain catering to global erospace industry requirement."
QuEST has appointed Nicholas Belbin, as an advisory Board member at QuEST manufacturing to leverage his extensive experience in aerospace sheet metal processing.
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