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T.E.A.M. – Together Everyone Achieves More

CONTENTS I want to start out by reminding all of you that speed of execution has been, and will continue to be, the most important market differentiator for Aequs. P.A.C.E. (Performance Augmented and Coherent Execution) is our focused strategy to ensure growth and competitive excellence which we must follow across our business if we are to prosper and flourish in the globally competitive aerospace market place. Hence, it is imperative that cross-functional teams from various departments enthusiastically work together, assume responsibility and accountability, then

execute flawlessly.To better position Aerospace for speed, we have realigned leadership

responsibilities as the recent announcements have conveyed. The flexibility of our management team has always been a hallmark of Aequs’ agility and our entrepreneurial spirit and, it is this very capability that we must leverage to capture the unprecedented opportunities we see before us.

We are also witnessing a renewed focus from our key European customers, who are showing great interest in integrated projects to be jointly executed in our facilities in France and India. We have recently completed a new round of senior level discussions with our key customer in France and have reconfirmed our mutual objectives to create long term value.

Last, but not the least, please join me in welcoming Amit Chakraborty as a board member of the newly established Consumer business unit. We wish him every success.

Achieving Success through Speed of Execution

VOLUME VI - Q 4, FY’17

Aravind Melligeri, Chairman & CEO

Rajeev Kaul, MD, Aerospace & Group CFO

One + One always has a better synergetic probability. A group well synced with the organization’s vision can accomplish and achieve greater amount of success than one person alone, and when these people come together as a team, magic happens – a truly cohesive unit that functions with a single purpose can accomplish wonders.

For cross-functional teams to succeed and thrive, several factors come into play. The team members must be open-minded and highly motivated; they

must come from appropriate functional areas. The team must have both authority and accountability to accomplish the mission given by the organization. Most importantly, there should be adequate communication among the different team members.

When everyone brings their best practices to the table, a team can achieve any challenging mission. A self-aware team knows what holds them back, what roadblocks to avoid and how to leverage the resources.

In this era of unprecedented change, innovation and technology are dramatically transforming the world. The industries are becoming demanding with the invasion of exponential technology;

hence, speed of execution is most important and critical for keeping a steady momentum of business growth. It’s also important for an organization to cut through the competition and become stronger.

An organization could achieve strategic speed by focusing on its people. By mobilizing people appropriately, one could accelerate execution. It’s no coincidence that, as Aequs is emerging as a leader in disruptive technologies and innovative processes, we have shown a keen interest in the leadership development of Aequals.

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Inclusion and diversity training in

France ........................................ 2

Employee Testimonials ............ 2

COVER STORY

SQuAD – Forged in

Excellence ......................... 3-6

SPECIAL FEATURE

Industry 4.0: The Fourth

Industrial Revolution ......... 7-8

Graduate Engineer Trainee

(G.E.T) Hiring Drive ................ 8

Aequs Hosts Deshpande

Foundation’s ‘LEAD Prayana’

Team .................................... 9

Mr. Aravind Melligeri attends

Yuva Summit 2018 ............... 9

Prevention of Sexual

Harassment (PoSH) workshop

at Aequs ............................... 9

SQuAD’s heat treatment

facilities are Nadcap

certified . ............................. 10

AAIPL set to contribute to ISRO’s

PSLV mission ........................... 10

Aequs SEZ Updates . ............. 10

Aequs Foundation – Serving

Communities with Care .......... 11

Customer Visits @ Aequs ....11

Aequs in Media ...................12

Editorial Team:

Devjeet Majumdar

Malabika Chakravarty

Kuldeep Rane

Sasmita Pattnaik

Dhaval Chitnis

Jeetinder Khubchandani

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Mary Potter, Senior Estimating Specialist (AAM)

Kritika R.B, Senior Engineer - Account Project Management

Sushruth Kallimath, Lead Engineer, Manufacturing Engineering

Robert Haley, Machinist (AAM)

Inclusion and Diversity Training in France

Employee Testimonials

Managing a diverse workforce spanning multiple continents is a daunting task. Very few global companies have successfully overcome this

challenge through focused inclusion and diversity that is embedded into the organizational DNA as part of its core values. When an organization is able to overpower the barriers of cultural differences, nothing can come in the path of its growth.

Aequs, in its effort to align its people in France with the organization’s core values and philosophy, is conducting a series of training and orientation modulesfor the team leads in its two locations, namely, Aubigny and Cholet. The program is focused on strengthening a sense of belongingness among the employees. Celine Chevallier, a renowned HR consultant and coach specialized in behavior evaluation and professional motivations, is conducting the program at both the locations.

The Mayor of Aubigny sur Nère, Madame Laurence Renier, in a gesture to support the employees located

I have been with Aequs Aero Machine for 18 years and look forward to as many more as possible! I have had some great opportunities to learn several different job duties. With each one I learn new respect for those around me. My most cherished part of being an Aequs employee is the flexibility to use my PTO as needed for community service work. Bringing up the youth in our area is vital to our future as well as giving back what we receive!

I joined Aequs about four years ago, and since then it has been a wonderful journey. I got the opportunity to work with varied customers simultaneously like SABCA, Rolls Royce and managed India Defence projects like HAL, DRDO, ISRO, etc. with the same core values that Aequs has taught us – Trust, Transparency & Respect. Life cannot always be rosy and I have encountered my own professional hurdles. Thanks to my seniors who have supported me in this journey and taught me to embrace change and keep going.

I’ve been with Aequs for five years and the journey so far has been an enriching one where I got to learn something new each day.I enjoy working here because of the people I get to be around with every day.

I feel pride to be associated with the organization. Looking forward to many more productive years and deeper association.

I joined Aequs in 2010 as a management trainee and today I am a lead engineer in Aerostructures manufacturing. In this ever evolving and competitive market, Aequs has given me a platform to be right up there with the best in the industry. The respect that one gets in the local community for being employed at

Aequs is immense. I would sum it up by saying that Aequs is a thriving place for people striving for success.

in Aubigny area and encourage the development of the community, has graciously offered Aequs access to one of the well-equipped City Hall meeting rooms for conducting the training. She is also closely monitoring the program as a representative of the local legislation to ensure compliance of policies as per norms of the region.

The orientation is expected to promote understanding of cultural diversity and enable smoother transition into the family of Aequals.

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SQuAD – Forged in Excellence

Forging is the oldest known metal shaping process, dating back to around 4500 B.C. when prehistoric humans learned to heat sponge iron and beat it with a stone

to form a useful implement. Modern forging has emerged from the ancient art practiced by the armour makers and the quintessential blacksmith.

In the present day, sophisticated, high-powered hammers and mechanical presses have replaced the strong arm, the hammer, and the anvil while modern metallurgical knowledge supplements the art and skill of the craftsman in controlling the heating and handling of the metal. Forging has unique value among manufacturing processes. Forged metals are widely used by original equipment manufacturers (OEMs) in the production of durable goods.

Water-powered hammer and bellows (inset)

Ancient metal forging by blacksmiths

19th century steam-powered drop hammer

For a long time, the task of metal forging fell on the shoulders of the strongest men hailing from a long generation of blacksmiths. With the harnessing of water power by the Romans somewhere between 10th and 12th century A.D, the mechanical hammer was invented that could be powered by water. The bellows, too, were operated by water power. This process of forging continued till the 19th century when the invention of steam engine helped forging make a big leap from manual to mechanical, bringing it closer to the modern forging practices. A little later, electrical power finally brought metal forging out of the dark ages, transforming the entire industry.

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COVER STORY

India’s leading aerospace precision engineering and manufacturing company, Aequs, and its group company, SQuAD, specializes in the forging of Aerostructural Parts, Landing Gear and Braking System Components in aluminium, steel, titanium, or nickel base alloys.

SQuAD Forging was set up as a tripartite joint venture with Setforge, Aubert & Duval SAS (ERAMET Group) of France and Aequs in 2011. Today it’s a 50:50 joint venture between Aequs and Aubert & Duval. SQuAD specializes in aerospace forging and supplies parts to several global aerospace customers. Operational since 2012, the SQuAD plant is strategically located at Aequs SEZ, India’s first precision engineering and manufacturing SEZ, and is an integral part of the manufacturing ecosystem and supply chain. The SEZ hosts companies specializing in precision machining, sheet metal fabrication, special processing, tooling, warehousing and aerostructure assembly. SQuAD Forging plays a key role in the aerospace market and its blueprint for the future.

Inauguration Ceremony with all 3 partners: Commencement of infrastructure. (2011)

Assembly team from China with SQuAD and Aequs leadership

Xavier Pierron, CEO, SQuAD Forging

SQuAD forging India during the last 2 years has passed several critical toll gates in order to position itself as a credible player in the very demanding global Aerospace forging market. With its highly motivated

and competent team, SQuAD has been qualified by global OEM such as Liebherr Aerospace, SAFRAN group, Aeronamic, or ISRO. Our heat treatments facilities have now been certified by the NADCAP organization, allowing SQuAD to offer its customers additional services. This is just the beginning, as we are pursuing our development by adding in a few months, in collaboration with API, a state of the art facility for non-destructive testing of forged parts, as well as Ultrasonic testing capabilities. This will allow us to have access to the high margin markets of most critical aerospace components.

With its unique set of state of the art equipment, its competent team, the technical support from its partners, as well as its unique capability to offer with its SEZ partners optimized vertically integrated solutions for its customer’s most demanding requirements, SQuAD is in an unique position to bring value to its customers, and to insure itself a bright future.

Forgings are used in high performance, high strength, and

high reliability applications where tension, stress, load, and

human safety are critical considerations. They are also employed

in a wide range of demanding environments, including highly

corrosive and extreme temperatures and pressures. It comes as

no surprise that forgings of aluminium, steel and titanium are

widely used in the automotive and aerospace industries.

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Truly im-PRESS-ive!

In 2014, SQuAD installed a 10,000 ton hydraulic press, the largest in India, which can forge Aluminum, Steel & Titanium parts weighing up to 400 kg each. It took almost

nine days to transport the enormous press from Mumbai Port to Belgaum SEZ by road, covering a distance of 460 km on the Golden Quadrilateral. It was an amazing feat achieved with precise planning and team effort. 23 trailers were arranged to transport the heavy machinery (over 100 tons). Each and every bridge, crossing, slope and town was marked and studied beforehand and halts were planned accordingly as the entire movement could be made only during the night. French engineers belonging to Aubert

Imagine these heavy cargos that passed through many Mumbai streets!

Crossing the finish line – Trailers entering Aequs SEZ, Belagavi (right)

& Duval, along with SQuAD engineers, did a complete road survey for identifying limitations of each bridge, turn radius of curvy roads, slope of hilly area (especially the steep and winding ghat roads).

Speaking on the importance of the new press, AravindMelligeri, Chairman & CEO of Aequs, said, “The 10,000 ton press has significantly scaled up SQuAD’s ability to manufacture parts for the global aerospace industry. Earlier, aerospace customers had to source such parts from Europe and USA since no Indian company had the capability to cater to the market.”

SQuAD Forging primarily aims at the aerospace market to support major OEMs in their supply chain while contributing to their offset obligations. The unit also handles highly critical products for other markets such as Automotive,

Power Generation and Oil & Gas. SQuAD has all major ISO certifications and its Heat Treatment lines are NADCAP certified and approved by Safran, a French aerospace giant. SQuAD Forging contributes to the in-country value add to

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COVER STORY

the supply chain for all its customers, including machining by Aequs and surface treatment by Aerospace Processing India Pvt. Ltd., readily available in Aequs SEZ at Belagavi.

Georges Duval, Chairman of Aubert & Duval said, “Aubert

During the inauguration ceremony (2011)

Aequs and SQuAD team with Defence Minister, Mr. Manohar Parikkar (September, 2015)

SQuAD leadership interacting with customers durig Aero India 2017

SQuAD team with Mr. George Duval, during the quality manual release (2013)

With Dr. Kiran Kumar, Chairman – ISRO (February 2016)

& Duval currently has hydraulic closed-die forging presses ranging from capacity 20,000 to 65,000 tons, with the addition of this new 10,000 ton press we would be able to cater to growing customer demands more efficiently”.

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The Industrial revolutions (Courtesy: Solid State technology)

Industry 4.0: The Fourth Industrial Revolution

automation software to achieve operational efficiencies. In every industrial revolution, the benefits achieved were phenomenally higher than the previous one but also the complexity was higher and time to achieve those benefits was lower.

Now the fourth industrial revolution, being termed as Industry 4.0, is gathering momentum where the physical and digital worlds are converging through use of analytics, artificial intelligence (AI), cognitive technologies, and Internet of things (IoT) to create digital enterprises that are well interconnected and facilitate informed decision-making.

Industrial revolutions are known for their potential to ushersignificanttransformation in economies, jobs and societies by introducing new technologies and redefining

processes. The first industrial revolution happened in the 18th century and those who tapped into power sources, such as steam power, advanced unprecedentedly. The second industrial revolution happened in the 19th century and the champions were the ones who mastered mass production and assembly lines. The third era of industrial revolution came with the advent of computers and beginning of automation in 1970s.Major beneficiaries were the ones who could use

The industry 4.0 is set to redefine the way cyber physical systems interact with each other. Through a web of interconnected machines and systems, intelligent networks are being created along the entire value chain capable of securing an autonomous control over each other. Computer systems equipped with machine learning algorithms are being able to control connected robotics with very little human intervention. These systems, by monitoring physical processes, are able to make decentralized decisions. Workers are using wearables to achieve highest quality of product, products are communicating back to the factory as they are being used and, based on these inputs, operational efficiency is being improved and design changes are being made to make the product optimal.

Precision manufacturing redefinedIn the Aerospace and Defence sectors, Industry 4.0 is

creating opportunities for companies to bring global supply chain closer by getting suppliers join the network and link them through a wide range of design, demand, and various

other forms of data. New products and tools are being built around data and analytics, opening up possibilities for new data driven business models that have the potential to strengthen value chain positioning. ‘Smart Factories’ are adopting automation at a greater level with robots, automated guided vehicles, and technologies such as autonomous flexible drilling heads in aerostructure assembly.

The potential of data analytics in boosting the revenues of aerospace and defence companies is profound. Companies producing aircraft and related hardware are increasingly utilizing the enormous amount of data being generated in design, construction and operation of modern aircraft and other aerospace hardware to explore new data driven business models. The Airbus A320 neo produces some 20000 data points while the A350 produces around 400000 data points which amount to around 250GB of data per flight. This data is being used to improve flight operations, safety, passenger experience and also predictive maintenance. The gains to companies

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Contributing digital technologies (Courtesy: PWC report)

Contributed by Jeetinder Khubchandani, Deputy Manager, SCM

proactively investing in the future in fields of digitization and data analytics have the potential to change competitive landscape in a very short span of time. A shift in strategic mind-set is crucial for organizations to capitalize on the opportunities that industry 4.0 is bringing along.

Every new technological wave brings along its own set of challenges. With Industry 4.0, some of the challenges to tackle with would be deriving meaningful insights from ever expanding volume and variety of data, data security

issues arising due to integration of various systems and making these systems more accessible, achieving high level of reliability and stability by successful alignment of cyber physical systems. Scouting for human expertise required to create and implement these systems would also pose a challenge. Eventually solutions to challenges will emerge as technology becomes sophisticated. With a well thought-out strategy and execution, Industry 4.0 will change the face of the current industry forever.

Graduate Engineer Trainee (G.E.T) Hiring Drive

As part of its mission to impact the value chain by giving opportunity to budding talent, Aequs hires and nurtures fresh Engineering graduates through its

Graduate Engineer Trainee (GET) program. Recently, Aequs concluded campus hiring activities to scout forbest suited GETsfor our ecosystem. These graduates are joining us this fiscal year (2018-19). Aequs will then train and deploy the trainees in functional areas based on their capabilities.

The hiring of GETs is based on a sophisticated process to ensure that each trainee fits into our workplace culture and follows our values and philosophy. Screening is conducted through an online test, followed by group discussions and personal interviews. This time, a total of 312 students registered for the online test. Offer letters have been rolled

Colleges / Institutes Visited:Sl Names of the Institutes

1 KLE, Belgaum2 GIT, Belgaum3 BVB, Hubli4 SDM, Dharwad5 KIT, Kolhapur6 CoE A&D (Institute)

7 BITS, Goa Campus - For P-GET Hiring

out to 25 of them after final selection. The trainees are upbeat about working in Aequs on account of the huge potential for career growth in the Aerospace industry. Aequs appreciates the efforts put in by the institutes to groom the students for their career development.

SPECIAL FEATURE

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Aequs Hosts Deshpande Foundation’s ‘LEAD Prayana’ Team

LEAD Prayana is an annual leadership journey hosted by the LEaders Accelerating Development (LEAD) of the Deshpande Foundation, Hubli.

Aequs hosted LEAD Prayana team at their SEZ campus in Belagavi, the team’s first stop this year. The group consisted of 130 young under graduates from various streams drawn from different colleges of Karnataka, Telangana and UP. Aequs

stopover for many of the participants have fired the imagination of aspiring Engineering and other graduates.

LEAD Prayana participants, during their visit to Aequs SEZ, had the opportunity to experience the SEZ’s state of the art infrastructure, machines and capabilities including machining, sheet metal fabrication, closed-die forging, surface treatment and aerostructure assemblies.

Prevention of Sexual Harassment (PoSH) Workshop at Aequs

Aequs launched its awareness program on Prevention of Sexual Harassment (PoSH) through multiple personalsessions spread across a month. The trainers

from Bangalore-based e2e People Practices gave a thorough insight on all aspects pertaining to the

Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace Act 2013.

Considering the sensitive nature of the topic, spreading awareness on the same required a judicious effort by Aequs Management. Employees were sensitized on the Act & guidelines to the redressal process. The session concluded with a commitment by Aequs employees to ensure they would keep their workplace free from such incidents and uphold respect for all.

Mr. Aravind Melligeri attends Yuva Summit 2018

The LEAD Program of the Deshpande Foundation conducted its annual flagship conference, the Yuva Summit 2018, in Hubballi, Karnataka, on 3rd and 4th

February, 2018. The event brought together over 1,000 college youth from across 5 states to encourage leadership, innovation and entrepreneurship through awards, project exhibitions, and panel sessions. The participants got the opportunity to hear from and network with national and international group of mentors, faculty, young entrepreneurs, innovators and LEAD alumni.

Various industry leaders shared their life stories, along with their accomplishments and failures. During this event, Mr. Aravind Melligeri, chairman & CEO – Aequs, joined 23 other industry leaders including Nandan Nilekani, Co-founder – Infosys, Kishore Biyani, Founder and CEO – Future Group, PhanindraSama, Co-founder – Redbus.in, Jayant Humbarwadi, Executive Director – Ashok Iron Group, Dr. Dhirendra Shukla from the University of New Brunswick, to name a few.

Aravind Melligeri in a conversation with Nandan Nilekani, Co-founder - Infosys Aravind Melligeri addressing the participants at the Yuva Summit 2018

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Aequs SEZ Updates

AAIPL set to Contribute to ISRO’s PSLV Mission

SQuAD’s Heat Treatment Facilities are NADCAP Certified

AAIPL has received new orders from ISRO and HAL-ASD. The new order from ISRO is for Aerodynamic Stabilizer Assembly (AST) for the PSLV Program. The AST will

be assembled with more than 100 detailed parts which will be a mix of both machined and sheet metal. AAIPL has also

SQuAD has crossed a significant milestone with its state-of-the-art 10000 ton Hydraulic Press line receiving NADCAP accreditation. NADCAP (National

Aerospace and Defense Contractors Accreditation Program) is an industry-managed approach to conformity assessment

Aequs SEZ has added two more important customers to its already existing high profile occupants within the SEZ during last quarter. Latécoère, a French company and a world leader in

the field of Aerostructure and interconnection systems, will be setting up their manufacturing plant within Aequs SEZ. The Latécoère team, led by Mr. Denis Bretagnolle, Chief Executive Officer, visited the SEZ on 7th March, 2018. The new facility would occupy around 45,000 sq. ft.

with an option to expand in the future.

In another development, Purosil, a US based company which manufactures high performance silicone products for military equipment and automobile industry has also agreed to set up their unit at Aequs SEZ. This plant would occupy around 40,000 sq. ft. at our SEZ campus. Managing Director of Purosil, Dr. Thomas Garrett, who visited Aequs SEZ, was impressed with the facility.

that brings together technical experts from both Industry and Government to establish and certifythat a supplier is maintaining industry standards and benchmarks for quality. The global accreditation has given SQuAD a highly competitive edge along with industry recognition.

received a new order from HAL-ASD for Panel Sub-Assemblies. In another development AAIPL has successfully dispatched two major components to ISRO and HAL respectively.

Both of these assemblies will be used for ISRO’s PSLV mission, which is a proud moment for all Aequals.

Industrialized first super alloy (INCONEL 625) forgings for Aeronamic

Industrialized Nose wheel ( SAFRAN ) Industrialized Backward extrusion Gas bottle liner ( ISRO)

SQuAD’s Industrialization on 10KT Hydraulic Press Line

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Aequs, under its flagship community service program through Aequs Foundation, launched two unique projects in the last quarter.

Happy School ProjectThe Rotary Club of Belgaum, in association with Aequs

Foundation, has launched the Happy School project targeting 10 Government schools from the villages near Aequs SEZ, which includes schools from Anandpur, Hattargi, Yamkanmardi, Narsingpur, Gudaganahatti and Mangutti. The project facilitates in the construction of toilet blocks for 6 schools and provides essential infrastructure like benches, handwashing facilities, water purifiers and vinyl mats to all 10 schools. The groundbreaking ceremony for the construction of toilet blocks was conducted on 28th Feb, 2018, at KHPS Anandpur in the presence of MLA Mr. Satish Jarkiholi. Aequs Foundation is not only concentrating on building facilities but targeting behavioural change in students and teachers towards health and hygiene practices with its ongoing Health and Hygiene Awareness Program through various workshops.

Aequs hosted several existing and prospective customers at its SEZ, including high profile delegates from Boeing, Bombardier, Safran, Hasbro, Hewlett

Packard, among others. This quarter, Aequs SEZ has added two more prestigious customers to its already existing

Customer Visits @ Aequs

Ignite ProjectConsidering the importance of SSLC examination in

any student’s career, Aequs Foundation arranged one-day motivation and study skills workshop for 10th standard students in association with department of education. The program conducted two sessions on 6th Feb 2017 where more than 700 students from 9 high schools around the Aequs SEZ region participated and benefited from the program. The expert speakers, invited by Aequs Foundation, motivated participating students towards study and goal setting, study skills, examination preparation, stress management and career orientation.

high profile occupants, namely, Purosil and Latécoère.The customers, who visited our SEZ, planted saplings with their names on signage near each sapling so that they could track the growth of these saplings during future visits.

Aequs Foundation – Serving Communities with Care

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Aequs in Media:

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