Indo-MIM sees 10-15% annual revenue growth over five years on strong demand

Bengaluru-based precision engineering company Indo-MIM expects to deliver 10-15% annual revenue growth over the next five years, supported by demand across aerospace, defence, medical components and land-based gas turbines, while management also sees the China+1 manufacturing shift creating fresh business opportunities.

Krishna Chivukula, Whole-time Director and CEO of Indo-MIM, said the company remains confident of its long-term growth outlook following its stock market debut. The company believes existing capacities and operational leverage will support growth and profitability as utilisation improves, while demand across its core segments remains healthy.

Indo-MIM made a strong stock market debut on Thursday (July 30), listing at ₹700 on the NSE, a 44.3% premium to its issue price of ₹485. The stock listed at ₹703 on the BSE, marking a 45% premium over the IPO price after receiving strong investor demand.

While the company did not provide fresh revenue guidance beyond its Draft Red Herring Prospectus (DRHP), Chivukula said Indo-MIM's growth strategy remains focused on sectors with long-term demand visibility.

"I think aerospace, machining, metal injection moulding, defence, land-based gas turbines and medical components... all of these areas have strong tailwinds in the market, and we expect growth in them to be very strong over the future," he said.

According to the company, defence, medical, aerospace and land-based gas turbines are currently witnessing the strongest demand. Chivukula noted that these are large global markets with significant opportunities for precision engineering manufacturers.

The CEO said the company expects operational leverage to improve as existing capacities are utilised more efficiently. While margins will depend on the mix of business, he said the company sees stability in long-term profitability as volumes increase.

Indo-MIM also remains positive on export demand despite geopolitical tensions. Chivukula said the company has not seen any meaningful disruption to shipments or customer demand due to the West Asia conflict.

He added that while the company continues to monitor logistics, business conditions have remained stable so far.

The company also expects to benefit from manufacturers diversifying supply chains away from China. Chivukula said global original equipment manufacturers (OEMs) are increasingly sourcing precision components from India under the China+1 strategy.

China plus one is an opportunity, and it's visible in our numbers, he said, adding that the trend has been gaining momentum since 2022 and is reflected in the company's expanding order pipeline and programmes.

Indo-MIM manufactures precision engineering components for sectors including aerospace, defence, medical devices, automotive and industrial applications. The company specialises in metal injection moulding and precision manufacturing technologies.

For the full interview, watch the accompanying video

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