As a part of the Vibrant Gujarat Global Investors’ Summit (VGGIS) 2024, Macpower CNC Machines Limited has signed a Rs 100 crore-memorandum of understanding (MoU) with the Gujarat government.
The Rajkot-based private firm will invest the money to set up a facility to manufacture Computer Numerical Control (CNC) machines, which, in turn will manufacture aerospace and defence equipment parts.
CNC machines have wide applications in the manufacturing sector. They are used for precision in machining tasks like cutting, grinding, turning, milling etc for manufacturing parts which have applications in machines used in a range of sectors.
Chairman and Managing Director (MD) of Macpower Rupesh Mehta said, “We are among the handful of vendors in India who hold the license to manufacture defence and aerospace parts. As of now, we are providing CNC machines, technical knowhow and training to enterprises manufacturing defence goods and aerospace equipment. We have the capacity and knowhow to manufacture custom-made machines for these sectors and therefore, we have signed an MoU with the Gujarat government.”
The MoU was signed during the two-day pre-VGGIS 2024 organised in Shapar-Veraval near Rajkot on October 16 and 17 last year and presided over by Gujarat Agriculture Minister Raghavji Patel, who is also the guardian minister of Rajkot.
Mehta said Macpower has already supplied parts and equipment cumulatively worth around Rs 500 crore to organisations like the Indian Space Research Organisation (ISRO), Hindustan Aeronautics Limited (HAL), Defence Research and Development Organisation (DRDO) etc.
“We have many orders pending and given the government’s thrust on indigenous manufacturing of defence equipment, we are expecting a high growth in this sector. Therefore, we have decided to launch a new arm called Macpower Defence and have signed an MoU with the government for operationalising it,” the MD said.
The Macpower MD further said that the company has an annual turnover of around Rs 250 crore. “In the past, it has supplied components for T 90 Bhishma battle tank engines and other machines and tools to around 20 defence goods manufacturing units in the country,” Mehta said.
“We are excited about this project since this will be the first project of its kind under the new Aerospace & Defence Policy of the state government. We are focused on building and scaling up this project in a systematic manner, post receipt of land from the state government,” Mehta said in a statement.
The MD also said that the initial setup will be ready in 12 to 18 months after the government allocates land. “We plan to invest our own funds for this new venture and won’t require to borrow the capital,” Mehta said.
Kishor Mori, general manager of Gujarat government’s District Industries Centre in Rajkot, said the MoU has already got a formal approval from the state government.
Mori added, “The MoU makes Macpower eligible for a number of benefits, ranging from land at concessional rates to tax exemption under the state government’s Aerospace and Defence Policy, 2016.”
Macpower, which has a manufacturing unit in Metoda on the western outskirts of Rajkot city, has a capacity to manufacture 1,500 CNC machines in a year and the management of the company says this capacity will be augmented to 2,000 machines by 2024-25.