Rangsons Aerospace Eyes US Acquisition Amid Global Expansion

A major aerospace and defense manufacturer is actively pursuing an acquisition in the United States to strengthen its technological expertise and global presence. The company is conducting due diligence to acquire a US-based firm specializing in aerospace technologies.

With many small and medium aerospace enterprises in the US facing succession challenges, this acquisition presents a strategic opportunity. Many of these firms possess valuable core technologies but lack next-generation leadership, making them ideal candidates for acquisition. A final deal is expected by September.

Major Investment to Drive Growth

The company recently secured a ₹300 crore (approximately $36.5 million) investment to fuel expansion efforts. These funds will be directed toward increasing operational capacity, enhancing technological capabilities, and executing strategic acquisitions.

Diversified Aerospace Portfolio

The company’s key business areas include:

• Fluid Distribution Systems – Essential components for aircraft and engines, contributing 40% of revenue.
• Thermal Management Systems – Advanced cooling solutions for airborne platforms, accounting for 30% of revenue.
• Satellite Communication (SATCOM) Systems – High-tech communication systems, also making up 30% of revenue.

It is a key Tier I supplier to global aerospace giants, including Boeing, Airbus, Honeywell, GE, and Pratt & Whitney.

Future Growth Plans

The company is aggressively working toward:

• Expanding Commercial Aviation Revenue – Increasing its share from 40% to 60% by deepening collaborations with Boeing, Airbus, and Bombardier.
• Capturing a Larger Market Share – Targeting 10% of the ₹20,000 crore annual aerospace procurement market by 2030, aiming for annual revenues of ₹1,500 crore to ₹2,000 crore.

Facility Expansion and Technological Upgrades

To meet growing demand, the company is:

• Investing ₹100 crore over the next 18 months to expand its Mysore and Bengaluru facilities.
• Adding 100,000 square feet of new factory space to accommodate increased production and new technological capabilities.

This strategic expansion plan positions the company as a leading global aerospace supplier, leveraging innovation, acquisitions, and infrastructure growth to solidify its market presence.