SUMMARY
The company said it would use the fresh funds to increase manufacturing capacity at its new facility, further vertical integration, and other corporate initiatives
Founded in 2008 by Anuj Jhunjhunwala, JJG Aero manufactures seating and cargo systems for planes, landing gear, air management systems, and electric systems
Apart from aerospace manufacturing, JJG Aero manufactures automotive and industrial equipment at its Jigani unit in Karnataka
Bengaluru-based aerospace components manufacturer JJG Aero has secured $12 Mn (INR 100 Cr) in its maiden funding round from India-focused private equity fund CX Partners.
The company said it would use the fresh funds to increase manufacturing capacity at its new facility, further vertical integration, and other corporate initiatives.
Founded in 2008 by Anuj Jhunjhunwala, JJG Aero manufactures seating and cargo systems for planes, landing gear, air management systems, and electric systems. It counts the likes of Boeing, Liebherr, Collins, and Safran among its clients.
The company inaugurated its first dedicated aerospace manufacturing facility in 2019. This facility will become operational over two phases, and the company aims to triple its manufacturing capability with this facility.
Apart from aerospace manufacturing, JJG Aero manufactures automotive and industrial equipment at its Jigani unit in Karnataka.
Commenting on the funding, founder and CEO Jhunjhunwala said, “The aerospace supply chain is facing all-time high demand from aircraft manufacturers, which the legacy vendors in the Western world are struggling to meet… With our strengths and value proposition, we see ourselves emerging as a key player in the aerospace ecosystem. India has emerged as an attractive destination for sourcing components and parts by global leaders and we are excited to be selected by so many marquee clients as a strategic growth vendor.”
For Delhi NCR-based CX Partners, this marks the maiden investment in the aerospace segment.
“This investment will enable JJG Aero not only to continue on its growth path through capacity addition but also upgrade quality of earnings by focusing on higher value-added components…. With its foray into manufacturing of aeroengine components, we believe JJG Aero is well-positioned to capitalise on these opportunities and further solidify its presence in the market,” CX Partners’ managing partner Vivek Chhachhi said.
The investment comes at a time when the aerospace segment in the country is at a nascent stage. Earlier this year, union minister for trade and commerce Piyush Goyal, while addressing the National Startup Awards, pointed out that defence and aerospace are still unexplored areas for startups.
However, more and more startups are coming up in the segment to fill this gap. Earlier this year, aerospace and defence manufacturing startup Jeh Aerospace raised $2.75 Mn in a seed funding round led by General Catalyst.
According to Inc42’s Indian Spacetech Startup Landscape & Market Opportunity Report 2023, the industry boasts over 150 startups that have collectively attracted upwards of $285 Mn in investment since 2014. The report also projects the market to balloon to $77 Bn by 2030, with a CAGR of 26%.
