AIESL a gold mine, has the potential to grow 5x, says CEO Sharad Agarwal
AIESL's extensive infrastructure includes hangars located at seven different locations in India, providing line maintenance at nearly 100 airports in the country, and three engine shops with multiple shop capabilities that need upgrading.
Aviation Secretary Rajiv Bansal had told CNBC-TV18 that the reserve price for divestment will be decided closer to the date of inviting bids. Sharad Agarwal, CEO of Air India Engineering Services Limited (AIESL) has made a pitch to potential interested bidders calling AIESL a "gold mine".
Agarwal said, “AIESL by itself is a gold mine with highly talented and experienced pool of aircraft maintenance engineers and the current group of technicians and engineers will remain in the company even after the sale.”
Speaking to CNBC-TV18, he said AIESL recorded a revenue of over Rs 1,500 crore for last 3 years and has the potential to do 5 times more than the current revenue if properly invested.
AIESL's extensive infrastructure includes hangars located at seven different locations in India, providing line maintenance at nearly 100 airports in the country, and three engine shops with multiple shop capabilities that need upgrading.
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According to Agarwal, no MRO (Maintenance, Repair, and Overhaul) infrastructure in India matches that of AIESL, making it an attractive prospect for buyers.
However, Agarwal points out that an MRO in Abu Dhabi with a single engine shop has a revenue of over Rs 2,000 crore.
There will be competitive bidding for AIESL, but with its impressive infrastructure and revenue potential, it is undoubtedly a highly sought-after asset.
AIESL's current group of technicians and engineers are its biggest assets, and they will remain with the company, ensuring its continued success.
Agarwal also emphasized that there will be no job cuts despite the disinvestment. In fact, AIESL does not have enough people to sustain its current operations. The company is actively recruiting more staff to meet the increasing demand for its services.
(Edited by : Pradeep John)
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