Aeroflex Industries Limited has announced a capital expenditure programme of Rs 202 crore to expand its manufacturing capabilities across stainless steel (SS) hoses and braiding, hose assemblies, and liquid cooling skid assemblies. The investment is aimed at supporting the company's long-term growth and strengthening its presence in industrial applications and liquid cooling solutions for next-generation AI data centres.

Under the expansion plan, the company's SS hose and braiding manufacturing capacity will increase from 20 million metres per annum to 30 million metres per annum. The higher production capacity is also expected to support an increase in the output of associated hose assemblies.

Aeroflex plans to expand its liquid cooling skid assembly capacity to 30,000 units annually, positioning the company to address growing demand for liquid cooling infrastructure amid the expansion of AI workloads, data centres and high-density computing facilities.

The proposed investment will be financed through a combination of equity, bridge loans and internal accruals. The expansion will include brownfield development at the company's existing Taloja facility in Maharashtra, alongside the establishment of a new manufacturing facility for hose assemblies. The programme will be implemented in phases, with completion targeted by March 2028.

Commenting on the development, Asad Daud, Managing Director of Aeroflex Industries, said the investment reflects the company's focus on strengthening its core manufacturing operations while expanding capacity in emerging and high-growth industries. He noted that evolving industrial requirements and increasing demand for liquid cooling solutions are creating new business opportunities.

The company expects the expanded manufacturing capacities to generate incremental revenue of Rs 500–550 crore at peak capacity utilisation, supporting its efforts to achieve sustainable long-term growth.