Aeroflex Industries Ltd plans to invest ₹202 crore by March 2028 to expand manufacturing capacity across stainless steel (SS) hoses, hose assemblies and liquid cooling systems, as it looks to tap rising demand from data centres and other industrial applications.
The proposed investment will be made in phases through a combination of equity, bridge loans and internal accruals. The expansion will include upgrades at the company’s 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.
Aeroflex plans to increase its annual manufacturing capacity for SS hoses and braiding from 20 million metres to 30 million metres. The higher capacity is also expected to support increased production of associated hose assemblies.
The company will also expand its annual liquid cooling skid assembly capacity to 30,000 pieces, targeting demand for cooling systems used in next-generation artificial intelligence (AI) data centres.
Aeroflex bets on AI data centre demand
Asad Daud, managing director of Aeroflex Industries, said new industrial applications and changing customer requirements were driving demand for SS hoses, braiding and assemblies.
He added that the rapid growth of AI workloads, data centre infrastructure and high-density computing was creating opportunities for liquid cooling solutions.
The planned expansion is intended to help Aeroflex meet changing customer needs and capitalise on these emerging opportunities, the company said.
Capacity expansion already under way
Aeroflex has completed an expansion of its SS hose and braiding manufacturing capacity to 20 million metres per annum.
It has also increased capacity for liquid cooling SFN skid assemblies to 12,000 pieces per annum. The remaining capacity addition of 3,000 pieces is expected to be completed by December 2026.
Aeroflex Industries shares closed 1.78% higher at ₹567.50 on October 14, gaining ₹9.90 from the previous close. The stock has risen 194.64% so far this year, an increase of ₹374.89 over the period.
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