Industry Overview
India's geopolitical scenario and compulsions, real or perceived,
are driving a relentless transformation of its A&D industry.
With the world's third largest
armed forces, India's defence budget is around 2.2% of its GDP.
With its defence spending and aviation
market growth rate of estimated 18% (CAGR)
The sector's growth is also fuelling a MRO
market that alone is expected to grow 10% annually and reach
$2.6 billion by 2020.
Focus of Make in India should help the industry
Business Overview
Sika Interplant Systems Limited (Sika) is actively involved in four
main areas
- engineering (design and development)
- manufacturing, assembly and testing
- projects and systems integration
- maintenance, repair and overhaul (MRO)
The majority of our Company's business
is catered to serving the Aerospace & Defence (A&D) and
Automotive sectors.
Investment Rationale
It is estimated that during the next decade India will buy close to
USD 100 billion worth of fighter aircraft, radars, missiles and
warships.
Though it is difficult to reach a clear estimate on the
value of offsets which will be involved with this huge Defence
Imports, never the less the offsets figures could well be above
USD 30 billion.
JV with Aerotek of UK called Aerotek Sika
Company has great clients in HAL, Jet Airways, ISRO, BEL, Tata, Mahindra, Maruti Suzuki
Financials
3 Year Sales growth 79% CAGR
3 Compounded Profit Growth 44%
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