Raymond · tone and specificity signals across the available quarters.
Language signals
The aerospace business for us is a daily growth business because we are getting RFQs on a daily basis. We are making new product developments on a daily basis. We are ramping up on a daily basis. This is an active pipeline as of a recent number.
Aerospace is a long-term game. You're not working today for tomorrow. You're working today for the next 5 years. We are working in parallel with everything that we need to do to create value in the new expansion.
In aerospace our typical asset turnover for the new business that we are winning right now is hovering somewhere around 1.8 to 2.2 kind of and for auto it is somewhere between 2 to 2.5.
We are hardly 0.1 to 0.3% of that engine. So that gives us massive potential. We are a very small part of that engine.
In aerospace, we're growing at a very fast pace and we're doing a lot of new product development. So there is no percentage margin expansion but the betas are increasing significantly simply because we're growing the top line very high and we write off all development work done on these new products.
Boeing is back and they are producing at very high levels. I think the trend is very good although we've still not reached pre-COVID levels which means the potential is even higher.
We have the capacity to grow this business by 25% for next year within our existing system.
The biggest opportunity for us is when we start setting up Andhra... it's a clean slate for all.
It's not the 250 which is more important, what is important is that how do you go up the value chain on those 250 parts.