About Company

• Unimech Aerospace and Manufacturing Ltd (“Unimech”) was incorporated on August 12, 2016. Unimech is a global high precision and engineering solutions company with capabilities to manufacture under 2 models: (i) build to print and (ii) build to specifications, for their customers. They have established themselves as an approved supplier for various industry leaders in aerospace, defence, semi-conductor and energy sectors.

• They have developed and have a potential to further evolve their facilities to cater to all the specific and changing needs and requirements of the customers with respect to the products they make and for the industry they supply products to, allowing them to provide customized and tailored solutions.

• They are a leading exporter of aerospace components, with exports significantly contributing to the overall revenue. The company has a global delivery service model for supplying products to their customers, which includes logistical support and direct export to various companies including USA and Europe.

• They are a key link in the global supply chain for global aerospace, defence, semi-conductor and energy OEMs and their licensees for the supply of critical parts like aero tooling, ground support equipment, electro-mechanical sub-assemblies and other precision engineered components.

• They have established a sub-contractor ecosystem with vendors who undertake aspects of their manufacturing process with limited complexity, enabling them to concentrate on critical aspects of the manufacturing process. They are led by a qualified and experienced management team who are supported by a motivated and hard-working team of engineers and other members.

• Between Fiscals 2022, and 6-months period ended September 30, 2024, they have manufactured 2,999 SKUs in tooling and precision complex sub-assemblies’ category and 760 SKUs in the precision machined parts category, supplying to more than 26 customers across 7 countries.

• Unimech is the fastest growing companies, having recorded the highest revenue growth with a CAGR of 139.7% between FY 2022 – 2024, and has achieved one of the highest EBITDA and PAT margins in FY 24. They have recorded the highest ROCE and ROE in FY 2024 amongst the peers.

Strengths

Competitive Strength

• Advanced manufacturing capabilities capable of delivering high precision engineering solutions;

• Digital-first manufacturing company with a robust infrastructure facilitating seamless integration of operations;

• Established player with unique capabilities in a sector with high barriers to entry;

• Export driven player with a global delivery service model;

• Robust vendor ecosystem and strong sub-contractor management with proven execution capabilities;

• Experienced and complementary management team with strong implementation skills and operational effectiveness;

• Track record of strong financial performance.

Business Strategies

• Market Development: Enhancing the global footprint in strategic regions, thereby enriching the customer experience for the existing clientele and expanding the reach to new markets; 

• Market Penetration: Capturing a higher market share and increase in wallet shares from customers; 

• Capacity Expansion Strategies: Increasing manufacturing capacity and collaborative manufacturing with global and local manufacturers for growth;

• Diversification: Focus on growth by opportunistic inorganic acquisitions and partnerships with customers; 

• Product Development: Manufacturing of products including semiconductor manufacturing equipment, medical devices, robotics and other industries which require high-mix, low-volume.

Company Promoters

Company Financials

Unimech Aerospace and Manufacturing Limited's revenue increased by 125% and profit after tax (PAT) rose by 155% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The Company intends to utilise the Net Proceeds from the Fresh Issue towards funding the following objects: 1.

1. Funding of capital expenditure for expansion through purchase of machineries and equipment by the Company
2. Funding working capital requirements of the Company
3. Investment in the Material Subsidiary for: (i) purchase of machineries and equipment; (ii) funding its working capital requirements; and (iii) repayment / prepayment, in full or part, of certain borrowings availed by their Material Subsidiary
4. General corporate purposes.