Chandrayaan-3: Walchandnagar Industries Expects Launch Vehicle Demand To Double In 5-7 Years

Demand for launch vehicles from the Indian Space Research Organisation and the private sector is expected to double over the next five to seven years, according to Chirag Doshi of Walchandnagar Industries Ltd.

The company has planned a capex of Rs 60-100 crore in the next 12-18 months, Doshi, managing director and chief executive officer at Walchandnagar Industries, told BQ Prime's Sajeet Manghat.

This would involve a new facility and production line to meet the increased demand, including ISRO’s needs and potential privatisation of certain launch vehicle components, said Doshi. Walchandnagar manufactured critical boosters used in Chandrayaan-3 launch vehicle.

Owing to the Atmanirbhar Bharat push, private sector companies have gained confidence to enter the aerospace sector, which was once closely controlled by the government, he said.

The company is committed to maintaining its involvement in the legacy segments, which encompass a range of sectors, including space, defence, submarine programmes and the indigenisation of gearboxes for all naval vessels, Doshi said.

Walchandnagar Industries supports India's nuclear programme and provides essential crushing and grinding equipment for industries such as cement and petrochemicals, addressing the previous reliance on imports for these needs, he said. All these endeavors are aligned with the Atmanirbhar Bharat mission, Doshi said.

The space sector contributes significantly to the company's Ebitda.

"The space sector is 25% of our entire turnover, but contributes a lot more to our Ebitda ... Our aerospace segment's order book currently stands at around Rs 180 crore, (which is) part of the Rs 900-crore total orders."

While the contribution from the missile business remains modest, it aligns with its decade-long strategy of participation and investment, Doshi said.

The company is currently certified in 10 diverse missile programmes, with expectations of significant growth over the next decade, he said. It includes the upcoming generation of Akash missiles, where the company has already secured initial orders alongside other programme wins.

The government and Nuclear Power Corp. of India Ltd. have revived their nuclear programme after a decade-long pause, Doshi said.

There are 10 sites which will get 'Made in India' nuclear plants. Of them, 4-5 sites have been tendered, and the company has secured orders worth around Rs 300 crore, he said. These projects are ongoing and expected to be delivered between 2024 and 2026. Doshi expects more tenders from Nuclear Power Corp. for the remaining plants.

"We are dedicated to making equipment for safe and efficient hydrogen generation and transport," the CEO said. This involves creating many vessels and tanks and will form part of the process equipment business, he said.

In terms of finances, the company doesn't see the need to raise funds for better working capital, Doshi said. If any capital is needed in the future, it will be for investing in capacity expansion, and not for day-to-day operations, he said.