Aeroflex Industries shares moved 6% higher in morning trade after the company announced the approval of an expansion and automation plan for its manufacturing facilities. As of 9:44 AM IST, Aeroflex shares were trading 6.17% higher at ₹188.25.
The company informed exchanges that its board has approved the expansion of facilities for the manufacture of liquid cooling skids for data centers, along with the installation of robotic welding lines, automatic welding stations, and an annealing plant for stainless-steel hose assemblies.
Under the approved plan, Aeroflex will increase its liquid cooling skid capacity. The existing installed capacity stands at 2,000 units per year and is currently under trial production. The proposed capacity addition is 13,000 units per year. The company expects the additional capacity to be added by June 2026.
Aeroflex also plans to install robotic welding lines, automatic welding stations, and set up an annealing plant for stainless-steel braided hoses and assemblies used in mission-critical applications. The company clarified that these are supportive facilities and will not lead to an increase in production capacity, but will automate manufacturing processes related to stainless-steel hose assemblies. These facilities are expected to be commissioned by December 2026.
The total investment required for the expansion and automation project is ₹97.56 crore. The company will fund the investment through internal accruals of ₹42.56 crore and a preferential issue of ₹55 crore.
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