Azad Engineering to invest $20 million in setting up critical parts unit for Mitsubishi Heavy Industries in Hyderabad

HYDERABAD: Precision engineering player Azad Engineering is investing $20 million (approx. Rs 166 crore) in setting up an exclusive facility to manufacture critical and complex parts for Japanese giant Mitsubishi Heavy Industries (MHI) on Hyderabad’s outskirts.

The 11,800 sq mt facility, which is coming up at Tuniki Bollaram in Medak district and is slated to become operational by mid-2024, will generate about 300 jobs, Hyderabad-based Azad Engineering said.

The new unit will be part of its upcoming centre for excellence and innovation and will make airfoils for their gas and steam turbines.

While Azad Engineering managing director Rakesh Chopdar termed the collaboration as a high-point in the company’s decade-long association with Mitsubishi, MHI deputy CEO K Tanaka said Azad Engineering provides components of high quality and accuracy for their gas and steam turbines.

Pointing out that Mitsubishi’s quality requirements are among the highest in the world, Raja Ram Reddy, engineering head, MHI, Japan, said Azad is the only partner outside Japan, for few critical components, that can meet MHI’s demanding standards.

“They are wedded to customer centric approach and rate high on cost competitiveness, making them extremely attractive partners in our supply chain. Besides, Azad steadfastly sticks to delivery commitments. Even during the recent lockdown period, when supply chains were disrupted globally, Azad did not miss on delivery deadlines,” he added.

The company said the latest capacity expansion is part of its strategy to achieve a targeted growth of 35-40% CAGR over the next five years.

Azad is a global end-to-end solutions provider for power generation & aerospace OEMs including GE, Siemens, Toshiba, MAN, Doosan Skoda, GE Aviation, Boeing, Honeywell, Eaton, Rafael, BHEL, HAL and Baker Hughes.