BENGALURU: Wipro Infrastructure Engineering (WIN) says it expects revenue to double to over $100 million from its aerospace business on the back of growing business from customers such as Airbus and Boeing.
“Today (revenue) in aerospace alone, the ball park figure is about $50 million. My ambition is to see that it actually doubles in the next three years,” said Pratik Kumar, chief executive of Wipro Infrastructure Engineering. “In our order book, we have a visibility of over 8-9 years. But, growth is not going to come from the order book alone; it will come through new wins.”
WIN has been around for close to four decades with deep expertise in hydraulic solutions space. Last year, WIN acquired HR Givon, an Israel-based aerospace metallic parts supplier, in a bid to broaden its portfolio and expand its footprint in the aviation and aerospace industry. The acquired entity has been renamed Wipro Givon.
While Airbus and Boeing are large system integrators, the opportunity is to tie-up with the tier I and tier-II vendors of these plane makers who look to expand their partner network globally. WIN is looking at this opportunity, building capabilities in house and delivering systems and sub-systems to them.
It is also looking to the tap the customer base of Wipro Technologies, offering clients an end to-end solution from design to manufacturing systems and subsystems from across its centres in India, Israel, Europe and the US.
“Our approach has been to go beyond building expertise in the design and engineering side. To be able to graduate from what we are doing on the assemblies level to move on to become a subsystem player,” Kumar said.
India’s offset policy is also an added incentive for WIN, which looks to tap the opportunity to deliver components and systems to global vendors who need to honour their commitment for planes and arms they sell to the country’s armed forces.
In the past year, Indian suppliers are seeing an uptick in offset orders and expanding their facilities. “Offset order is a big attraction. There is lot of investment which is beginning to happen in anticipation that the offset opportunity will fructify. But it is still work in progress,” Kumar said.