Bangalore, Sep 13 (IANS) CADES Digitech Ltd, an upcoming product design and engineering services firm in aerospace and automotive sectors, plans to invest $15 million in the next two years for expanding operations in India and overseas.
With big ticket aerospace and automotive firms such as Boeing, Airbus, Hindustan Aeronautics Ltd (HAL), Indian Space Research Organisation (ISRO), Nissan, Volvo and Mazda as its leading clientele, the five-year-old CADES (computer aided design and engineering services) provides virtual product development by employing latest technologies and reducing the development cycle by 30-40 percent.
Funded largely by Nadathur Holding & Investments floated by N.S. Raghavan, who co-founded Infosys Technologies Ltd, CADES will raise $5 million in this fiscal (2006-07) and $10 million in the next fiscal (2007-08) to set up three offshore development centres at Coimbatore in Tamil Nadu, Pune in Maharashtra and Bhubaneswar in Orissa and four more overseas sales & marketing offices at Seattle in the US, Bristol in the UK, Toulouse in France and Turin in Italy over the next 12-18 months.
'We have raised $6.5 million from Nadathur Holding in the first round of funding to set up our Bangalore operations with about 300 lateral engineers. Having become a niche player in the high-tech industries, we are in an expansion mode to ramp up our headcount to 1,000 engineers by 2007 and 2,000 engineers by 2008 and widen our portfolio offerings to execute complex projects for our growing clientele,' CADES Managing Director & CEO Dataram Mishra told IANS.
With design, analysis, simulation, virtual testing, digital manufacturing and product data management as its core competencies, the company plans to set up an engineering centre of excellence in Bangalore for advanced technologies and leverage its resources for undertaking projects in aerodynamics, computational fluid dynamics, thermal analysis, mechanical and multi-body simulations, structural integrity modifications and life extension.
'We are scaling up our capabilities and resources to offer conceptual design and detailing, structural analysis and aero-elasticity to global aerospace, defence, automotive and manufacturing firms. About 8-10 percent of our sales revenue are invested in R&D projects to develop new technologies and create our own IPs (intellectual properties),' Mishra said.
With the government making it mandatory for overseas firms to outsource 30 percent of their aviation and defence business from India as offset benefits to domestic firms, CADES is gearing up to bid for design projects in aerospace and defence sectors covering airframes, systems and structures.
'In the aerospace sector, besides Airbus and Boeing, we are in discussions with EADS (European Aerospace and Defence Services), Lockheed Martin, BAE Systems, Israeli Aircraft Industries, Alenica, Sikorsky and Bell Helicopters for offset participation,' Mishra added.
According to industry estimates, the opportunity for Indian firms in offset participation will be about $5-7 billion annually, especially in civil and military aerospace industries.
Similarly, in the automotive sector, the company is bidding for design and development projects from Daimler Chrysler, Mahindras and Bombardier (transport division), besides repeat orders from Mazda, Nissan and Volvo.
Commensurate with its expansion plans, the company is projecting 100 percent revenue growth in the current fiscal (FY 2006-07) to $40 million from $20 m
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