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Home / Capex & Future Plans / Sigma Advanced Systems Starts Aerospace Production at Sri City Facility; Targets Major Capacity Expansion
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Sigma Advanced Systems Starts Aerospace Production at Sri City Facility; Targets Major Capacity Expansion

Sigma Advanced Systems Starts Aerospace Production at Sri City Facility; Targets Major Capacity Expansion

Sigma Advanced Systems Ltd has started production at its dedicated aerospace manufacturing facility in Sri City, Andhra Pradesh, marking a major milestone in the company’s plans to build an integrated aerospace manufacturing platform across India and the UK.

The company announced the development on September 10, 2026, stating that the facility has moved from the construction phase into active production in just eight months.

The first batch of precision-machined aerospace components has already been manufactured and shipped to Sigma’s UK operations for final verification ahead of formal customer delivery.

First Aerospace Components Manufactured in India

The Sri City facility has completed its initial production phase, with the first batch of precision-machined aerospace components now manufactured.

These components have been shipped to Sigma UK, where they are undergoing final verification before being formally delivered to the customer.

The development represents a shift from facility construction to commercial manufacturing activity and is an important step in Sigma’s strategy to replicate its established UK aerospace manufacturing capabilities in India.

75,000 Sq Ft Facility Now Operational

The aerospace manufacturing facility is being developed across a larger 500,000 sq ft campus at Sri City.

In just eight months, approximately 75,000 sq ft has been brought into operation.

The first operational facility currently provides approximately 100,000 annual machining hours (AMH) of production capacity.

Sigma has planned the facility to eventually reach nearly 300,000 annual machining hours of capacity.

The remaining portion of the campus is expected to become operational over the next 12 months, adding further manufacturing capacity and aerospace-critical processes.

India Could Handle 70% of Manufacturing

Sigma intends to progressively shift a larger portion of its aerospace manufacturing value chain to India.

Once the planned capabilities are fully operational, approximately 70% of the manufacturing process is expected to be undertaken in India.

The company said the Sri City facility is being developed to replicate Sigma UK’s established aerospace manufacturing capabilities in India while maintaining complementary operations across the two countries.

Rolls-Royce Source-Change Approval Underway

The Sri City operation has also completed the initial stages of the source-change approval process with Rolls-Royce Aerospace.

This is an important development because aerospace manufacturing programmes require stringent qualification, quality and process approvals before production can be fully integrated into customer supply chains.

Sigma said it will continue progressing the relevant approvals and aerospace certifications as the facility expands.

Capacity Could Rise to 300,000 Machining Hours

The company has significant expansion plans for the Sri City facility.

The current operational capacity stands at approximately:

100,000 annual machining hours

The first facility has been budgeted to eventually reach:

Nearly 300,000 annual machining hours

The broader Sri City campus is designed across approximately 500,000 sq ft, providing room for further expansion and additional aerospace manufacturing processes.

Sigma has also stated that the facility has the capabilities and scale to support future acquisitions.

Potential Double-Digit EBITA Expansion

Sigma’s management expects the Sri City facility to become an important part of its global manufacturing platform.

According to CEO and Executive Director Sunil Kalidindi, the company expects the facility to contribute to double-digit EBITA expansion as its capabilities and production scale increase.

The company, however, has not provided a specific incremental EBITA figure or financial guidance attributable solely to the Sri City facility in this announcement.

Strategic Location for Exports

Sri City was selected partly because of its logistics connectivity and ability to support export-oriented manufacturing.

According to Sigma, the facility has access to four major ports, providing connectivity for international shipments.

The location is intended to support the company’s strategy of manufacturing aerospace components in India and supplying global aerospace programmes.

Hiring Plans: Over 500 Employees

Sigma also plans to build specialized aerospace manufacturing capabilities at the Sri City campus.

Over the next two to three years, the company expects the operation to employ more than 500 people.

The workforce is expected to include specialists in:

  • Precision manufacturing
  • Complex fabrications
  • Specialized welding
  • Engineering
  • Aerospace processes
  • Other advanced manufacturing capabilities

The company plans to develop these skills through on-campus training and capability-development programmes.

Building an India-UK Aerospace Manufacturing Network

The Sri City facility forms part of Sigma’s broader strategy to establish a multi-site aerospace manufacturing footprint across India and the UK.

Through its UK subsidiaries, Nasmyth and Bromford, Sigma already has a presence in the global aerospace supply chain.

The company produces complex precision solutions for demanding manufacturing programmes involving global original equipment manufacturers.

The new Indian facility is intended to complement these UK operations and progressively bring a larger portion of the manufacturing value chain into India.

What Happens Next?

With production now underway, Sigma plans to focus on several key milestones.

These include:

  • Expanding the Sri City manufacturing facility
  • Commissioning additional aerospace-critical processes
  • Progressing NADCAP accreditation
  • Increasing production capacity
  • Increasing the proportion of manufacturing undertaken in India
  • Completing customer qualification and source-change processes
  • Developing specialized aerospace manufacturing talent

What Does It Mean for Sigma Advanced Systems Investors?

The announcement is strategically important because the Sri City facility has moved beyond construction and started actual production.

The current 100,000 annual machining-hour capacity provides an initial manufacturing base, while the planned expansion toward nearly 300,000 hours could significantly increase the facility’s contribution over time.

The Rolls-Royce source-change process is another important milestone to monitor because successful qualification could strengthen the facility’s participation in global aerospace supply chains.

However, investors should note that the company has not disclosed a specific revenue or profit contribution from the facility at this stage.

Investor Takeaway

Sigma Advanced Systems has reached an important operational milestone with the start of aerospace component production at its Sri City facility.

The key numbers are 75,000 sq ft currently operational, 100,000 annual machining hours of current capacity, nearly 300,000 planned machining hours, a 500,000 sq ft overall campus, and more than 500 expected employees over two to three years.

The bigger investment story will depend on how quickly the company ramps up production, obtains additional aerospace certifications and customer approvals, and converts the new capacity into revenue and profitability.

Bottom line: The Sri City facility marks a significant step in Sigma Advanced Systems’ transformation into a larger global aerospace manufacturing player. The immediate production start is positive, while the planned capacity expansion, Rolls-Royce qualification and future customer programmes are the key developments investors should watch.

Source

Sigma Advanced Systems Limited media release dated September 10, 2026.

Disclaimer

This article is for informational purposes only and should not be considered investment advice. Investors should independently review the company’s exchange disclosures, financial results, and future announcements before making investment decisions.