About TechEra Engineering India Limited

TechEra Engineering (India) Limited, established in October 2018, engages in the design, manufacture, and supply of precision tooling, components for the aerospace and defence industries, and automation system solutions. The company's product portfolio includes assembly toolings, jigs, fixtures, maintenance, repair, and overhaul (MRO) toolings, ground support equipment, and precision machined components. It utilizes advanced manufacturing technologies, such as 5-axis machining and 3-D modelling for design visualization, to meet the requirements of its target sectors.

The Company has participated in notable projects, including the manufacture of tooling for the commercial aircraft vertical fin assembly line and fighter wing skin layup tool, indicating its capability to execute complex engineering projects. The company aims to contribute to technological advancement and the upliftment of the sectors it serves, through continuous improvement and innovation in its processes and offerings.

Engineering Industry in India
India’s Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others. 

The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables. India has a competitive advantage in terms of manufacturing costs, market knowledge, technology, and innovation in various engineering sub-sectors. India’s engineering sector has witnessed a remarkable growth over the last few years, driven by increased investment in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of huge strategic importance to India’s economy. 

The development of the engineering sector of the economy is also significantly aided by the policies and initiatives of the Indian government. The engineering industry has been de-licensed and allows 100% foreign direct investment (FDI). Additionally, it has grown to be the biggest contributor to the nation's overall merchandise exports.

India became a permanent member of the Washington Accord (WA) in June 2014. it is now a part of an exclusive group of 17 countries who are permanent signatories of the WA, an elite international agreement on engineering studies and mobility of engineers.

Capital Goods sector contributes to 12% of India’s manufacturing output and 1.8% to GDP. Market valuation of the capital goods industry was US$ 43.2 billion in FY22. Imports of Electrical Machinery in India increased to US$ 16.1 billion in 2021. The Indian electrical equipment industry comprises of two broad segments, Generation equipment (boilers, turbines, generators) and Transmission & Distribution (T&D) and allied equipment like transformers, cables, transmission lines, etc. The sector contributes about 8% to the manufacturing sector in terms of value, and 1.5% to overall GDP. Incentives for capacity addition in power generation will further increase the demand for electrical machinery. 

The electrical equipment market share in India is expected to increase by US$ 33.74 billion from 2021 to 2025 at a CAGR of 9%. The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach US$ 72 billion by 2025. In FY21, India’s heavy electrical equipment production stood at Rs. 168,949 crore (US$ 21.15 billion). Production of generation equipment (boilers, turbines and generators) in India is estimated to be around US$ 5.7 billion by 2022. The electrical machinery/equipment segment grew nearly 90% with shipments jumping to Rs. 13,606 crore (US$ 1.6 billion) in the April-July 2022 from Rs. 7,202 crore (US$ 869 million) in the year-ago period. 

The Indian textile machinery industry was expected to touch US$ 6 billion mark by 2022. India’s textile machinery exports registered a growth of 21.4% to US$ 762.15 million in the first nine months of 2022. The market size of Plastic machinery sector stood at US$ 0.5 billion. The market size of the process plant equipment sector stood at US$ 3.7 billion. In 2021, the production data of Earthmoving and Mining Machinery stood at US$ 3.5 billion. The foundry industry has a turnover of approx. US$ 19 billion with exports of approx. US$ 3.1 billion. There are 750–800 domestic Medical Devices manufacturers in India, with an average investment of US$ 2.3–2.7 million and an average turnover of US$ 6.2-6.9 million. 

The Indian industrial fasteners market is expected to reach a value of Rs. 460 billion by 2023 expanding at a CAGR of ~9.6% from 2018. India steam boiler systems market size is expected to reach nearly US$ 22.56 billion by 2027 with the CAGR of 4.63% during the forecast period. The India generator sets market is expected to grow at a CAGR of more than 5% over the period of 2020-2025. The India power transformer market is expected to rise at a CAGR of more than 3% during the forecast period of 2020-25. Indian switchgear market is projected to grow at a CAGR of over 15% through 2023, on account of rising development across residential, commercial and industrial end use sectors. 

India’s automotive industry is worth more than US$ 222 billion, contributes 8% of the country’s total export, accounts for 7.1% of India's GDP and is set to become the 3rd largest in the world by 2030. Indian auto components industry, which accounts for 2.3% of India’s GDP currently, is set to become the 3rd largest globally by 2025. The Indian agricultural equipment market reached a value of Rs. 926 billion (US$ 11.1 billion) in 2021. The Indian machine tools market size reached US$ 1.4 Billion in 2022 and is expected to reach US$ 2.5 billion by 2028, exhibiting a growth rate (CAGR) of 9.4% during 2023-28. 

The Indian automated material handling (AMH) market was valued at US$ 1,353.8 million in 2020 and is expected to go up to US$ 2,739.34 million by 2026 at a CAGR of 12.7%. In FY21, India’s heavy electrical equipment production stood at Rs. 168,949 crore (US$ 21.15 billion). The electrical equipment market is forecasted to grow at 12% CAGR to reach US$ 72 billion by 2025 from US$ 48-50 billion in 2021. The electrical equipment export market is forecasted to reach US$ 13 billion by 2025, from US$ 8.62 billion in 2021.

Indian machine tool production and consumption were estimated at Rs. 6,602 crore (US$ 879.38 million) and Rs. 12,036 crore (US$ 1.6 billion), respectively, in FY21, while exports stood at Rs. 531 crore (US$ 66.48 million). The boiler industry’s market size stood at US$ 146 million in 2019 and is expected to grow at a CAGR of 6% to reach US$ 194 million by 2025. Export of boilers stood at US$ 106.53 million between April-November 2020, with around 72 million units exported. 

The market size of high voltage switchgear (including panels) and low voltage switchgear (including panels) stood at Rs. 4,793 crore (US$ 679.95 million). In FY22, India exported engineering goods worth US$ 111.63 billion, a 45.51% increase YoY. India exports engineering goods mostly to US and Europe, which account for over 60% of the total exports.

The electrical equipment market share in India is expected to increase by US$ 33.74 billion from 2021 to 2025, and the market's growth momentum will accelerate at a CAGR of 9%. Investment in engineering R&D sector is expected to reach US$ 63 billion by 2025. Market size for the Indian Construction Equipment Market stood at US$ 5.2 billion in FY22 and is forecasted to grow at a CAGR of 8.9% to reach US$ 8.7 billion by 2028. The construction equipment industry is expected to sell 165,097 units by 2028. The machine tools market is expected to reach US$ 2.5 billion by 2028, exhibiting a growth rate (CAGR) of 9.4% during 2023-28. 

India’s expected export of medical devices will reach ~ US$ 10 billion by 2025. India steam boiler systems market size is expected to reach nearly US$ 22.56 billion by 2027 with the CAGR of 4.63% during the forecast period. The India generator sets market is expected to grow at a CAGR of more than 5% over the period of 2020-25. The India power transformer market is expected to rise at a CAGR of more than 3% during the forecast period of 2020-2025.

Indian auto components industry, which accounts for 2.3% of India’s GDP currently, is set to become the 3rd largest globally by 2025. Export of engineering goods is expected to reach US$ 200 billion by 2030. India plans to spend US$ 1.4 trillion on infrastructure between 2019-2023 which is predicted to boost the expansive growth of the sector. The India diesel gensets (generator sets) market is expected to reach US$ 2.78 billion by 2030 compared to US$ 1.48 billion by 2022 at a CAGR of 8.20%. 

India will become a major exporter of telecom equipment in the next two to three years and the government is working to achieve that goal. The Ministry of Road Transport and Highways plans to construct around 28,391 km of highways in 25 months at a daily average of around 38 km, starting from March 2022 to the end of the financial year 2023-24. India’s installed nuclear power capacity of 6,780 MW will increase to 22,480 MW by 2031 on progressive completion of projects under construction and accorded sanction. 

The Indian automated material handling (AMH) market was valued at US$ 1353.8 million in 2020 and is expected to go up to US$ 2,739.34 million by 2026 at a CAGR of 12.7%. Turnover of the capital goods industry was estimated at US$ 92 billion in 2019 and is forecast to reach US$ 115.17 billion by 2025. India’s engineering R&D market will increase from US$ 36 billion in FY19 to US$ 63 billion by FY25. The export of engineering goods is expected to reach US$ 200 billion by 2030. 

India’s earthmoving and construction equipment (ECE) industry has enjoyed strong growth over the last seven years due to rapid economic development, and it has become the third largest construction equipment market in the world. In FY22, the construction equipment industry sold 85,385 units, while the earthmoving sector continues to grow. With development of infrastructure, demand for construction equipment and other machinery is expected to rise significantly. 

The material handling equipment sector is expected to gain from robust demand from steel, power, mineral and other infrastructure industries, while demand for machine tools from the capital goods sector (especially automobile and textile industries) is projected to remain high. 

The ‘Make in India’ initiative and the government's focus on ease of doing business is likely to present several opportunities in the engineering and capital goods sector in the upcoming years.

Defence Manufacturing Industry in India
India is one of the strongest military forces in the world and holds a place of strategic importance for the Indian government. The top three largest market segments of the Indian defence sector are military fixed wing, naval vessels and surface combatants, and missiles and missile defence systems. Military rotorcraft, submarines, artillery, tactical communications, electronic warfare, and military land vehicles are some of the other well-known segments. Some of the major defence manufacturing companies in India are Bharat Earth Movers Ltd. (BEML), Bharat Electronics Ltd. (BEL), and Hindustan Aeronautics Ltd. (HAL). 

The Indian defence manufacturing industry is a significant sector of the economy. The industry is likely to accelerate with rising concerns about national security. Demand for defence equipment in India has been growing due to the ongoing territorial disputes with Pakistan and China over the ownership of the Northern State of Kashmir and the North Eastern State of Arunachal Pradesh, respectively. Over the last five years, India has been ranked among the top importers of defence equipment to gain technological advantages over rival countries such as China and Pakistan. To modernize its armed forces and reduce dependency on external dependence for defence procurement, several initiatives have been taken by the government to encourage ‘Make in India’ activities via policy support initiatives. 

India has the world’s third-largest defence expenditure, as of 2021, and expects to export equipment worth US$ 15 billion by 2026. 

As per the Union Budget 2022-23, 25% of the defence R&D budget has been earmarked for private industry and start-ups which will pave the way for the innovation of new defence technologies in India. 

Till October 2022, a total of 595 Industrial Licences have been issued to 366 companies operating in Defence Sector. Defence exports grew by 334% in the last five years; India now exports to over 75 countries due to collaborative efforts.

According to the Global Power Index, the Indian defence sector ranks fourth in terms of firepower with a score of 0.0979 (with 0.0 being the perfect score). The Indian government has set the defence production target at US$ 25 billion by 2025 (including US$ 5 billion from exports by 2025). India is one of the world’s biggest defence spenders with a total outlay of Rs. 5.25 lakh crore (US$ 66 billion), accounting for 13.31% of the total budget and indicating an increase over the budget estimates of 2021-22 by Rs. 46,970 crore (US$ 5.9 billion).

India’s military spending of US$ 76.6 billion ranked third highest in the world in 2021. This was up by 0.9% from 2020 and by 33% from 2012. 

The value of defence production in the country crossed Rs. 1 lakh crore (US$ 12 billion) for the first time on the back of key reforms to spur growth in the sector that holds vast potential. The figure stood at Rs. 1,08,330 crore (US$ 13.07 billion) in FY23 compared to Rs. 95,000 crore (US$ 11.47 billion) in FY22 and Rs. 54,951 crore (US$ 6.63 billion) five years ago. 

India’s defence import value stood at US$ 463 million for FY20 and US$ 469.5 million in FY21. India targets to export military hardware worth Rs. 35,000 crore (US$ 5 billion) in the next five years. As of 2019, India ranked 19th in the list of top defence exporters in the world by exporting defence products to 42 countries. Defence exports in the country stood at Rs. 15,920 crore (US$ 1.94 billion) in 2022-23. 

Defence exports grew by 334% in the last five years and India now exports to over 75 countries due to collaborative efforts.

The Indian government is focussing on innovative solutions to empower the country’s defence and security via ‘Innovations for Defence Excellence (iDEX)’, which has provided a platform for start-ups to connect to the defence establishments and develop new technologies/products in the next five years (2021-2026). Working through partner incubators, iDEX has been able to attract the start-up community to participate in the Defence India Start-up Challenge (DISC) programme. 

In an effort to boost the defence sector and increase the infusion of FDI, the government in September 2020 revised the regulations and permitted FDI under the automatic route up to 74% and 100% through the government route in any area, where it is likely to provide access to contemporary technologies. The Defence Ministry has set a target of 70% self-reliance in weaponry by 2027, creating huge prospects for industry players. Green Channel Status Policy (GCS) has been introduced to promote and encourage private sector investments in defence production to promote the role of private sector in defence production. Given the government's emphasis on easing restrictions on foreign investment in order to achieve India's goal of an "Atmanirbhar Bharat," the growth trajectory of the Indian defence sector remain strong.

Indian Aviation Industry
The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years and can be broadly classified into scheduled air transport service which includes domestic and international airlines, non-scheduled air transport service which consists of charter operators and air taxi operators, air cargo service, which includes air transportation of cargo and mail. Domestic traffic contributes around 69% of the total airline traffic in South Asia and India’s airport capacity is expected to handle 1 billion trips annually by 2023. The Indian aviation industry has recovered fully from the covid-19 pandemic shock as indicated by the air traffic movement which stood at 327.28 million in FY23 compared to 188.89 million in FY22. 

Indigo is the largest airline company in India with the highest market share. India has become the third-largest domestic aviation market in the world and is expected to overtake the UK to become the third-largest air passenger* market by 2024.

India is expected to overtake China and the United States as the world's third-largest air passenger market in the next ten years, by 2030, according to the International Air Transport Association (IATA). Further, the rising demand in the sector has pushed the number of airplanes operating in the sector. The number of airplanes is expected to reach 1,100 planes by 2027. 

During April-October 2023, the domestic passenger traffic stood at 175.42 million, registering a 19.4% increase, and international passenger traffic stood at 38.55 million, a 26.2% increase, as compared to the same period the previous year. 

In FY23, airports in India pegged the domestic passenger traffic to reach 270.34 million, a 62.1% YoY increase, and international passenger traffic to reach 56.9 million, a 157% YoY increase, as compared to FY22. 

Between FY16 and FY23, freight traffic increased at a CAGR of 2.20% from 2.70 MMT to 3.15 MMT. Freight traffic stood at 3.15 million metric tonnes in FY23. Freight traffic in airports in India has the potential to reach 17 MT by FY40. In FY22, the number of aircraft movements stood at 1,757,112, and aircraft movements reached 2.5 million in FY23. To cater to the rising air traffic, the Government of India has been working towards increasing the number of airports. As of 2023, India has 148 operational airports. India has envisaged increasing the number of operational airports to 220 by 2025.

India’s aviation industry is largely untapped with huge growth opportunities, considering that air transport is still expensive for the majority of the country’s population, of which nearly 40% is the upwardly mobile middle class. The government has been instrumental in developing policies to give a boost to the aviation sector. For this, the UDAN-RCS scheme has been launched by the government which aims to increase air connectivity by providing affordable, economically viable, and profitable travel on regional routes. 

The industry stakeholders should engage and collaborate with policymakers to implement efficient and rational decisions that would boost India’s civil aviation industry. With the right policies and relentless focus on quality, cost, and passenger interest, India would be well placed to achieve its vision of becoming the third-largest aviation market by 2020. The expenditure of Indian travellers is expected to grow up to Rs. 9.5 lakh crore (US$ 136 billion) by 2021. In 2022, the contribution of India's travel and tourism sector to India's economy was worth Rs. 15.7 trillion (US$ 190 billion). 

By the end of this year, it would be worth Rs. 16.5 trillion (US$ 200 billion), as per the data released by the World Travel & Tourism Council (WTTC). The forecast for the next ten years is worth an enormous almost Rs. 37 trillion (US$ 450 billion). Due to the rise in demand for air travel, India will need 2,380 new commercial airplanes by 2038. According to a report titled ‘Travel market in India’, published by RedCore - a RedSeer unit focusing on early-stage companies - the travel market in India, worth ~US$ 75 billion in FY20, is projected to cross US$ 125 billion by FY27.

TECHERA ENGINEERING INDIA LIMITED COMPETITIVE STRENGTHS
1. Specialized Expertise
2. Technical Capabilities
3. Experienced Leadership
4. Recognitions and Certifications

TECHERA ENGINEERING INDIA LIMITED STRATEGIES
1. Market Segmentation
2. Value Proposition Communication
3. Marketing Channels Utilization
4. Differentiation Strategy
5. Customer Relationship Management
6. Market Expansion
7. Brand and Communication
8. Research and Development Investment
9. Regulatory and Sustainability Considerations

TECHERA ENGINEERING INDIA LIMITED RISK FACTORS & CONCERNS
1. The business is dependent on the sale of their products to key customers.
2. They are highly dependent on a single Manufacturing Facility for the entire portion of their revenue from operations.
3. The Company has delayed payment of Government and statutory dues, and has been penalized.
4. Interest rate fluctuations may adversely affect the Company's business.
5. They have not placed orders or made payments in relation to the capital expenditure for their new machinery and equipment.