Aeroflex Industries Limited approved a major expansion plan at its board meeting on December 18, 2025. The company took this decision to meet future demand and strengthen its value-added manufacturing portfolio. Moreover, the expansion reflects Aeroflex’s growing focus on advanced and mission-critical applications. Consequently, the company aims to deepen its presence in high-growth industrial segments.

Firstly, Aeroflex approved the expansion of facilities to manufacture liquid cooling skids for data centres. This segment supports the rapidly growing digital infrastructure industry. Currently, liquid cooling skid capacity stands at 2,000 pieces per year, while the company continues trial production. Therefore, Aeroflex plans to add 13,000 pieces per year to this capacity. The company expects to complete this expansion by June 2026.

In addition, the board approved the installation of robotic welding lines and automatic welding stations. These systems will support the manufacturing of flexible stainless steel hose assemblies. Moreover, Aeroflex will set up a dedicated annealing plant for stainless steel braided hoses. This facility will cater to mission-critical applications and specialised industrial requirements. However, these installations will automate processes and improve efficiency rather than increase capacity. The company targets completion by December 2026.

Meanwhile, the total investment for the expansion stands at Rs 975.6 million. Aeroflex will fund Rs 425.6 million through internal accruals. Additionally, the company will raise Rs 550.0 million through a preferential issue. Therefore, this funding structure supports growth while maintaining financial balance. The management approved the investment to meet future demand and enhance product value.

The company exports its products to more than 80 countries worldwide. Consequently, Aeroflex enjoys strong brand recognition across industrially developed markets. Its customer base includes multinational companies and reputed domestic brands across industrial segments. Therefore, the company maintains a strong and diversified global footprint.

Stainless steel hoses continue to replace rubber hoses across industries. This shift occurs due to their ability to handle high temperatures, shocks, and vibrations. Under European law, stainless steel hoses qualify as food-grade products. Hence, pharmaceutical and food-related industries increasingly adopt them.

Looking ahead, upcoming green-field projects will drive strong demand growth. The company expects demand for stainless steel hoses to rise by 50 to 60 per cent over the next three years. Moreover, superior quality compared to Chinese and Southeast Asian products supports rising global demand. As a result, Aeroflex expects exports to increase substantially during this period.