Chennai-based Rialto Enterprises Pvt Ltd, which is part of the ₹600 crore Rayala Corporation that is engaged in the manufacture of auto parts, high precision components, food products and toothbrushes (for Procter & Gamble), and US-based $50 million Carr Lane Manufacturing have formed a 30:70 joint venture to make aerospace components (non-flying) for both domestic and export markets.

The joint venture that will produce locating and camping components for aerospace tools will initially invest ₹15-20 crore to create facilities at its existing campus in Chennai. After 3-4 years, it hopes to pump in ₹80-100 crore in expanding the operations.

“We have a facility readily available at Perungudi and Kelambakkam in Chennai. Our concept is to start small and then grow big. So when we grow big we may move to aerospace zone,” said Ranjit Pratap, Managing Director, Rayala Corporation. The manufacturing operations in Chennai are expected to commence in July this year. It will initially employ about 25 people and the staff strength may increase to about 100 when it expands the operations after a few years.

“In the first three years, exports will outpace domestic sales. In India, we will serve the requirements of US and European companies. Our primary customers in the Indian market will include TATA Advanced Systems and its subsidiaries. We certainly see those US companies moving more work in aerospace to India,” said Colin Frost, Chief Operating Officer of Carr Lane Manufacturing.

In the JV, Carr Lane contributes the technical know-how to manufacture tooling components. While Carr Lane seeks to promote its products in India, it also sees advantages in reducing its production costs through sourcing from India. With local manufacture, sale and service of its products, its customers in India could achieve savings up to 30 per cent, said Frost.