Aeroflex Industries Limited is investing Rs 202 crore to ramp up manufacturing capacity and tap rising demand from next-generation AI data centres, liquid cooling infrastructure and other high-growth industrial applications.
The company plans to complete the expansion programme by March 2028. The investment will cover stainless steel (SS) hose and braiding, hose assemblies, and liquid cooling skid assemblies, with the expanded capacities expected to generate incremental revenue of Rs 500–550 crore at peak utilisation.
The expansion comes as the rapid growth of artificial intelligence workloads and high-density computing creates fresh opportunities for advanced liquid cooling solutions, while evolving industrial applications continue to drive demand for flow control products.
Aeroflex plans to increase its SS hose and braiding manufacturing capacity from 20 million metres per annum to 30 million metres, a 50% jump in annual capacity.
The higher output is also expected to support increased production of associated hose assemblies. The company will additionally expand its liquid cooling skid assembly capacity to 30,000 units annually, strengthening its ability to serve the growing data centre cooling market.
The Rs 202-crore capital expenditure programme will be funded through a combination of equity, a bridge loan and internal accruals. The project will include a brownfield expansion at the company's existing Taloja facility and the establishment of a new manufacturing facility for hose assemblies.
Aeroflex Managing Director Asad Daud said the investment would strengthen the company's core manufacturing operations while positioning it to capture opportunities in emerging industries.
“The proposed investment reflects Aeroflex’s strategic focus on strengthening its core manufacturing capabilities while building capacity in high-growth and emerging industries.
"While newer industrial applications and evolving customer requirements are driving demand for SS Hoses & Braiding and Assemblies, the rapid expansion of AI workloads, data centre infrastructure and high-density computing is creating significant opportunities in liquid cooling solutions.
"The planned expansion across SS hoses & Braiding, Assemblies and Liquid Cooling Skid Assemblies is expected to enhance Aeroflex’s ability to capitalize on these opportunities, cater to evolving customer needs and drive sustainable long-term growth. At peak capacity utilization, the expanded capacities are expected to generate incremental revenue of Rs 500 - 550 crore.”
With the expansion scheduled for completion by March 2028, Aeroflex is seeking to scale its established hose and assembly business while building a stronger foothold in liquid cooling systems — an increasingly important component of next-generation AI data centre infrastructure.
