- AARAN 1 Engineering based in Hyderabad, is a premier manufacturer of engine components and complex machined parts.
- Managing Director Gavin Price sees the expansion of the aerospace sector in India after a pandemic slowdown.
- With certificates of approval from Rolls Royce and Rafael, and Quality Approvals for precision machined components, the company is preparing to serve more diversified sectors.
Manufacturing of engine and complex machine components for the aerospace industry calls for certain merits like a kin understanding of technology-driven production, a skilled workforce dedicated to specialized techniques, and a knack for innovation and entrepreneurial acumen. AARAN 1 Engineering, based in Hyderabad, is a case in the point as the company stands for all the merits not just by the products it has to offer but also as a spirit that binds the team together.
After a number of successful startups by the management team within the aerospace segment, AARAN 1 Engineering Pvt Ltd started business in 2017. Gavin Price, the Managing Director, had realized the opportunities of the emerging aerospace manufacturing sector in India way back in 2012. Today under his leadership, AARAN 1 Engineering has a robust manufacturing facility spreading over an area of 30,000 sq. ft with international standard machining operation and enjoys the distinction of being approved as a manufacturer of precision machining components by leading OEMs such as Rolls Royce, Incora, Elbit and Rafael.
Taking the flight
Speaking of the initial days Gavin says, “I realized there are more opportunities in India than in the UK. The reason is that in the UK there were a lot of similar companies and roles. The market was particularly overcrowded with new entries and existing companies. And there was a shortage of skills in manufacturing. In 2012, I started doing consultancy followed by a position as Indian MD in a UK joint venture with a Chinese company. I believe I can make any component in any manufacturing environment. But I really wanted to get back into aerospace.”
A couple of years went by and the pace that Gavin wanted to achieve was not working to that end. So he decided to leave the positions and begin his own journey. “That is the when I started AARAN 1 Engineering, which was going back into the aerospace sector and high precision machining. We made sure to set up quality levels in the production. Even as a small entity, we ensured a very high-class facility. We spent more than fifty percent of the investment in quality equipment rather than machines.”
The company got an opportunity to produce a rather intricate and complex engine component that cemented AARAN 1 Engineering capabilities in the market. “It really catapulted us to a different level. That generated more interest among the customers and in 2018 we expanded our facility by double”, says Gavin. It was indeed a fast journey starting with three machines to forty machines in just three years. “Despite the disruption caused by the pandemic we are still growing in all sectors, not just in aerospace, but we have diversified while exploring some existing still growing sectors.”
Location and segment matter
Speaking of the company’s choice of Hyderabad as its base Gavin says, “There was not much competition in aerospace, so we were in an area where there was not much complication. So it made pretty much sense to us rather than going to Pune or Bangalore where the market is full.” Hyderabad has proved to be good for AARAN 1 Engineering with a lot of incentives and schemes, fast track policies, and the state being quite supportive to the manufacturing environment, Gavin points out.
Aerospace is not an industry where one can just dive into, get approval and expect to deliver quality products. “Customers in aerospace like to see a proven track record, they like to understand if you have been involved with similar products”, explains Gavin. “The notion is that aerospace is a cross-over sector has led the market inundated by new players last few years. The barrier to entry is still there and one has to offer something unique. We cater to the Indian market and a lot of our business is in this emerging market. But we do serve the global market though it is slightly lesser compared to the Indian market.”
The company does not have a dedicated sales team, so all of the lead generations are happening by the word of mouth, recommendations by clients, and social media. “We do not have anyone to chase business. It is all about past relationships and credentials and new relationships by recommendations on social media.”
The culture of quality
Given the market is India less organized, Gavin says, “We bring the culture in terms of manufacturing expertise and a high level of the facility, real quality control and working at hands-on level with the workforce. We break the myth that low cost is poor quality. We offer world-class quality and facilities at a lower price. And these points have played well to win new customers.”
Commenting on managing the huge pool of manpower in India Gavin says.”The ones with experience expect a very high salary, and the fresher are more eager to learn but they are quick to leave. We train our people from the ground level and offer remuneration and facilities which are at par with any MNC, but what works for the employee is the feeling of pride about what we want to do. The company is going to have a Tech Centre to impart dedicated training programs with hands-on exposure. We want the multi-skilled people working with us”. The company keeps contact with the institutes for the freshers, to get quality human resources involved in its venture.
With the pandemic raging since last year posing challenges in all sectors, AARAN 1 lost nearly ten cents of its revenue due to lockdown. “We lost the opportunity to grow which we were expecting to be huge. But the advantage we drew from it that we managed to restructure our vision of future.”
Speaking of the government’s policy Gavin says, “I am fortunate to be working in an industrial state which is primarily of automotive parts. There are a lot of good practices that have been adopted at the local authority levels like working to make a cleaner environment and managing waste. With very active support from the authorities, the government is actually trying to catapult manufacturing in Telangana and regular contact with the government officials makes the process easier.”
Applied automation
As AARAN 1 has grown over the years, Gavin comments on the application of automation in manufacturing.”Today automation price in India is the lowest as it has ever been. With so many options for automation and the price point is much lower; automation is definitely an advantage now. If one implements automation in the right manner, one can run the machines with very limited manpower. I think the payback of applied automation is becoming a lot more viable option. So that is the biggest advantage I see, so Aaran1 will gradually move more into automation and robotics” Gavin concludes.
