Aeroflex Industries Plans ₹202 Crore Capex to Expand SS Hose, Liquid Cooling Capacity
The Aeroflex Industries capex plan commits ₹202 crore by March 2028 to expand manufacturing capacity across stainless steel (SS) hoses, hose assemblies and liquid cooling systems. The company is targeting rising demand from data centres and other industrial applications. The investment will be made in phases through a mix of equity, bridge loans and internal accruals.
Scope of the Expansion
The plan includes upgrades at the existing Taloja facility and a new manufacturing facility for hose assemblies. At peak capacity utilisation, the expanded facilities are expected to generate an additional ₹500-550 crore in revenue, the company said.
| Indicator | Current / Previous | Planned | Change / Signal |
|---|---|---|---|
| Total investment | Not applicable | ₹202 crore by March 2028 | Phased spending |
| SS hose and braiding capacity | 20 million metres a year | 30 million metres a year | +50% |
| Liquid cooling skid assembly capacity | 12,000 pieces a year | 30,000 pieces a year | 2.5 times current level |
| Peak-utilisation revenue potential | Not applicable | ₹500-550 crore additional | Company estimate |
The higher SS hose capacity is also expected to support increased production of associated hose assemblies. The liquid cooling expansion targets demand for cooling systems used in next-generation artificial intelligence (AI) data centres.
Expansion Already Under Way
Aeroflex has completed an expansion of its SS hose and braiding capacity to 20 million metres per annum. It has also raised capacity for liquid cooling SFN skid assemblies to 12,000 pieces per annum, and the remaining 3,000 pieces of that addition are expected by December 2026.
Management View
Asad Daud, managing director of Aeroflex Industries, said new industrial applications and changing customer requirements are driving demand for SS hoses, braiding and assemblies. He added that rapid growth in AI workloads, data centre infrastructure and high-density computing is creating opportunities for liquid cooling solutions. The company said the plan is intended to meet changing customer needs and capture these emerging opportunities.
Market and Sector Impact
Aeroflex Industries shares closed 1.78% higher at ₹567.50 on October 14, a gain of ₹9.90 from the previous close. The stock has risen 194.64% so far this year, an increase of ₹374.89 over the period.
| Indicator | Reading | Change / Signal |
|---|---|---|
| Closing price (Oct 14) | ₹567.50 | +₹9.90 (+1.78%) |
| Year-to-date performance | +194.64% | +₹374.89 |
What to Watch
Track completion of the remaining 3,000-piece liquid cooling addition due by December 2026, the phasing of the ₹202 crore spend, and the mix of equity and bridge loan funding, which the company has not detailed.