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COLUMN

Aerospace Manufacturing in India

Set to Grow Phenomenally

By Dr. Biswadip Shome

THE GLOBAL AEROSPACE SECTOR is minimum opportunity for domestic coupled with its’ expertise in product
growing at an enormous rate and studies entities is worth $75 billion, given the development will help global aerospace
indicate that Asia-Pacific will lead the 30% offset requirement, according to the organizations realize their India pie.
world in air traffic by 2032, overtaking Edelweiss Securities report. The defense According to the International Air
Europe and North America. Today, a fifth of sector has been planning to induct new Transport Association (IATA), the global
the population in emerging markets take generation aircrafts and the government airline industry continues to grow rapidly
a flight annually, but by 2032 this number is accelerating the procurement process. doubling the industry revenue of US$369
will rise to two-thirds of the population Such procurements are governed by the Billion in 2004 to a projected US$746
as global passenger numbers more than offset clause and will help to bring in Billion in 2014. Airbus predicts that the
double to 6.7 billion. The domestic demand foreign investment. Also, due to the high worldwide fleet will double to around
in emerging economies will grow sharply focus on the ‘Make in India’ campaign, 36,500 aircraft and by the same date,
too, with India forecasted to grow at the new opportunities are expected to help other estimate that more than 24,000
fastest rate (nearly 10 per cent), followed grow the Indian market. business jets, 5,800 regional aircraft and
by China and Brazil (both 7 per cent). The overall pie for outsourcing will 40,000 helicopters will also be required
India’s $12 billion defense market is continue to increase as a percentage and the growth is predominantly driven
expected to continue its strong growth of the defense spend; however, it is by emerging markets. This will usher
trajectory through 2023 and capital expected to decline in absolute terms in large opportunity in the MRO space
spending is expected to reach $18- as global aircraft integrators and their spread across Aircraft Engine MRO,
$20 billion, which would be the second tiered suppliers are consolidating and HMV / Mod MRO, Component MRO and
highest growth rate among the top 15 optimizing engineering, manufacturing Line MRO. Services to the MRO space
countries ranked by defense spending. and customer support processes to have been the focus area for Tata
With Prime Minister, Narendra Modi service the order pipeline efficiently. Technologies for some time now. Their
pushing to reduce import dependence Competing with global and Indian MRO customers have started realizing
in defense equipment and ‘buy Indian’ ESO players for deals in the aerospace the value that we add by leveraging our
equipment, India’s likely defense domain and being one of the largest Engineering and Enterprise Solutions
outlay is estimated at $248 billion Indian pure play engineering services expertise and Aerospace experience.
over the next 10 years, according to and solutions provider working with the Tata Technologies’ demonstrated
an Edelweiss Securities report. The top ten aerospace OEMs and Tier-1’s; expertise in engineering competence,
Indian government has also approved Tata Technologies delivers reliable and core product development,
various programs worth over Rs.1 lakh optimized solutions for aero structures, manufacturing engineering, knowledge
crore, with almost 70% earmarked for aero interiors, aero-systems, and of various engineering processes,
the ‘buy’ category, which makes this aero-engines across engineering product life cycle management tools
is a significant opportunity for both analysis and modeling, continuous and evolving enterprise IT Solutions
foreign and Indian players. The defense engineering support, core product is helping address various issues
segment has some niche windows of design and development, manufacturing and making companies realize the
growth opportunities that have been engineering, manufacturing and repair opportunities across the various
created, mostly as a result technological concessions justification, aftermarket sectors. For Global customers, Tata
evolutions and radical innovations being and MRO Support, embedded systems, Technologies provides unique access to
pursued and delivered by the industry product lifecycle management and the Tata Ecosystem that offers solutions
value chain. enterprise solutions. for the entire value chain in Aerospace &
Currently India’s defense offset The recent thrust in product Defence domain.
policy mandates that foreign contractors localization of our defense requirements
source components and systems from and the government emphasis on Offsets
local vendors for at least 30% of the is throwing up opportunities hitherto Dr. Biswadip Shome is Head of
value of orders worth more than Rs. unexpected and again Tata Technologies Aerospace – Engineering & Design, Tata
300 crore that they get from India. The experience with leading aerospace OEMs Technologies.
34 ASIAN AIRLINES & AIRPORTS JULY / AUGUST 2015 WWW.ASIANAIRLINES-AIRPORTS.COM