Aequs Limited has signed a non-binding Memorandum of Understanding (MoU) with Guidance, the nodal agency of the Government of Tamil Nadu (GoTN), to establish a new aerospace manufacturing unit in the state. The agreement was executed on February 16, 2026, marking a significant step in the company’s long-term expansion strategy.
Under the proposed plan, Aequs, along with a group company, intends to invest up to ₹1,900 crore over the next ten years. The investment will focus on manufacturing high-precision components for aircraft engines, landing gear, and aerospace systems. The move is expected to strengthen the company’s role in the global aerospace supply chain while enhancing India’s domestic manufacturing capabilities in the sector.
As part of the MoU, the Government of Tamil Nadu will provide facilitation and infrastructural support for the project. This includes regulatory assistance in line with applicable laws, infrastructure support, and uninterrupted power supply on a best-effort basis. The company will also be eligible for standard incentives under the existing industrial policies of the Tamil Nadu government.
The agreement is non-binding in nature and does not involve any share exchange or joint venture structure. The company has clarified that the arrangement does not qualify as a related party transaction, and promoters or group entities do not have any interest in the agreement.
The proposed facility is expected to contribute to Tamil Nadu’s growing aerospace ecosystem, which has been attracting significant investments in recent years. For Aequs, the development represents a strategic expansion aimed at scaling up its aerospace manufacturing operations and capitalising on rising global demand for aircraft components.