Azad Engineering To Build Pratt & Whitney Aircraft Engine Components
The deal establishes a framework for a long-term collaboration aimed at significantly strengthening Azad’s manufacturing capabilities in the aerospace sector.
Azad Engineering Ltd. will build aircraft engine components for Pratt & Whitney Canada Corp.
The company signed a master terms agreement and purchase agreement for the development and manufacturing of aircraft engine components. The deal establishes a framework for a long-term collaboration aimed at significantly strengthening Azad’s manufacturing capabilities in the aerospace sector, an exchange filing said on Tuesday.
While the agreement is a long-term agreement with an international entity, the specific size of the orders and the time period by which the contract is to be executed has not beem disclosed due to confidentiality clauses. It is also not clear where the manufacturing will happen.
"This collaboration is expected to solidify Azad Engineering's position as a critical partner in the development and manufacturing of sophisticated aircraft engine parts," the filing said.
Earlier in September, the company signed a new long-term contract and price agreement with Japan's Mitsubishi Heavy Industries Ltd. for the supply of highly engineered and complex rotating and stationary airfoils for advanced gas and thermal power turbine engines, with the contract valued at Rs 651 crore.
India has been pushing for local manufacturing of aerospace components to reduce reliance on imports. Last month, Hindustan Aeronautics announced a deal with Russia's United Aircraft Corp. to build commercial planes in the country.
Azad Engineering share price closed 1.98% lower at Rs 1,640 apiece on the NSE, ahead of the announcement, compared to a 0.4% decline in the benchmark Nifty 50.
The counter had losses as deep as 2.26% during the day, dragging the price down to Rs 1,677 apiece. The scrip in the last 12 months have declined 3.92% and slipped 4.74% on a year-to-date basis.
