Aeroflex Industries Ltd, a manufacturer of flow control solutions with a growing presence in liquid cooling systems for AI data centres, has announced a ₹202-crore capacity expansion programme.
The investment will expand manufacturing capabilities across stainless steel (SS) hoses and braiding, hose assemblies and liquid cooling skid assemblies.
Manufacturing capacity to increase
Aeroflex plans to increase SS hose and braiding capacity from 20 million metres annually to 30 million metres. Higher hose production capacity is also expected to support increased manufacturing of associated hose assemblies.
Capacity for liquid cooling skid assemblies will expand to 30,000 pieces annually. The expansion is intended to address rising demand from industrial applications and high-density computing infrastructure.
Expansion combines existing and new facilities
The programme will include brownfield expansion at the company’s existing Taloja facility and a new manufacturing facility for hose assemblies. The work will be undertaken in phases, with completion targeted by March 2028.
The proposed capital expenditure will be funded through a combination of equity, a bridge loan and internal accruals.
AI infrastructure drives demand
“The proposed investment reflects Aeroflex’s strategic focus on strengthening its core manufacturing capabilities while building capacity in high-growth and emerging industries. Newer industrial applications and evolving customer requirements are driving demand for SS hoses, braiding and assemblies, while expanding AI workloads, data centre infrastructure and high-density computing are creating significant opportunities in liquid cooling solutions,” Aeroflex Industries Managing Director, Asad Daud said.
“The planned expansion is expected to strengthen our ability to capitalise on these opportunities, meet evolving customer needs and drive sustainable long-term growth,” he said.
At peak capacity utilisation, the expanded capacities are expected to generate incremental revenue of ₹500–550 crore,” he said.