Endowment Lecture Global A & D Industry size In 2015 it is - - PowerPoint PPT Presentation

3rd Dr. KCG Verghese Endowment Lecture

Global A & D Industry size

In 2015 it is expected to exceed US$750B

Source: Deloitte White Paper

Boeing expects a demand for 1,740 planes in India over the next 20 years, estimated at $240 billion. Indian airlines together have around 400 operational planes and around 500 on order.

• Estimates show defense
• ffset over the next 5 –

10 years will be in the range of US $ 30 – 40 b.

• Opportunity to the

Indian Aerospace industry to get into the high-end Aerospace Manufacturing, Engineering, MRO, Training etc.,

• Revision of FDI from 26

– 49 per cent - excellent

• pportunities for Indian

industry to collaborate and establish JVs, partnership and strategic alliances

India Engineering Advantage

Cost productivity Capability Market access Strategic workforce planning Macro environment

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Unparalleled Skill, Scale, and Cost Advantage Top down approach Talent management 80% In-house 20% Partners Structure & Con-

• ps

1/5th to 1/3rd

• f US cost

Deep & broad At scale Tie Zoe customer support Ageing US workforce

• IPR Regime
• ↓ ITAR

restrictions

Examples Success Factors

• $250 + M invest.
• 4,500 technologists in

B’lore; 7,000 total

• 2,000+ Patents
• Flange-to-flange work
• $200+ M invest.
• 7,000 technologists
• Test team HQ in India
• $100 + M invest.
• 2,000 technologists
• FAA approved product

Project Indian Partner Investment Made by OEM Approximate Procurement Value / Ship sets Estimated Cost Advantage vs. incumbent supplier Offset Obligation at project Initiation S-92 Cabin Assembly Tata Advanced Systems Ltd

• ~ 20 international

SMEs

• LTA 5-10 years
• 4 Cabins / month
• ~60 Cabins delivered

~ 20% -25% None C-130 Empennage and Center Wing Box (CWB) Tata Advanced Systems Ltd

• ~ 20 international

SMEs

• LTA 5-10 years
• 2 empennages / month

by end of 2014

• 2 empennages

delivered, 16 CWB2 delivered ~ 20% -25% None initially but delivering offsets for follow-on six C-130J Hawk AJT Assembly HAL

• ~ 25 international

SMEs

• LTA 5-10 years
• 15 aircrafts / year
• 52 aircrafts delivered

~ 30% None A-320 Forward Passenger Door HAL

• LTA 5-10 years

(Project started in 1990)

• 21 units / month
• ~ 4000 sets delivered
• Sole source by 2017

~ 30% - ~40% None Airbus Single Aisle Flap Track Beams DTL

• LTA 5-10 years
• 40 units / month
• ~2000 sets delivered

~ 40% None 407 Cabin DTL

• ~ 20 SMEs hired

from within India

• LTA 5-10 years
• First delivery in 2016
• 10 units / month

~ 40% None

Global Aerospace OEMs have sourced from India for Cost Competitiveness; Offset Credits Follow

OEMs see significant cost advantage at world-class quality levels

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Expertise Needed for Aerospace Industry

• Aerospace Engineering
• Mechanical Engineering
• Electronics / Avionics
• Metallurgy / Material Science
• Manufacturing / Industrial Engineering
• Chemical Engineering
• Mathematicians / Computer Programmers
• Safety / Certification specialists
• Pilots / crew / customer engagement specialists
• Maintenance, Repair, Overhaul specialists
• Program Management / Business Management
• Writers / Lawyers, Accountants

Project Management Systems Engineering Supply Chain Management Operations Information Technology Business Development Finance Economics R&D Analysis Design Manufacturing Flight Testing

India Opportunities

Likely Opportunities for future:

• Offsets fro Foreig OEM’s
• Helicopter Manufacturing: Kamov from Russia; Airbus, Sikorsky

Outsourcing from HAL- ALH, LCH, LUH

• Fighter Aircraft Manufacturing: Rafale or any other being contracted,

LCA outsourcing, AMCA Development and outsourcing by HAL

• Transport Aircraft: Spin Offs from Avro replacement at TASL

Out sourcing by HAL (MTA)

• UAV Manufacturing
• Aeroengine Manufacturing
• Avionics development & Manufacturing
• MRO’s for Defence Aircrafts, Engines and components
• Engineering designs
• Radar and other critical components manufacturing
• Guns & Canons manufacturing
• Support Equipment & Tooling
• Training Centres
• Aerostructures assembly
• Aerospace grade raw materials: Ti, Al, Composites, Wires, Connectors

Some of Indian companies in A & D

HAL: Bangalore, BEL: Bangalore & Sahibabad, Dynamatics: Bangalore and Nashik Tata Advanced Systems Ltd, TAL Manufacturing Solutions Nagpur, Pune Rosseltech Bangalore, Sasmos Bangalore, TAML Bangalore, HICAL Bangalore Aequs Belgaum, Alpha Tocol Bangalore, Titan: Hosur Godrej & Boyce Precision Manufacturing Mumbai, Kineco Kaman Goa Mahindra Telephonics JV Delhi, Mahindra Aerospace Bangalore, L&T Ankit Fasteners Bangalore, Sundaram Fasteners Hosur, Maini Aerospace Bangalore Bharat forge, Reliance Defence & Aerospace (Anil Ambani Group) Tata Power Bangalore, Goodrich Facility Bangalore, GE R&D Centre Bangalore Honeywell, VEM Technology, Hyderabad, SIM Tools Bangalore Samtel, Noida, PMI Chennai, Vijaya Metal Finishers Bangalore, Curtiss Wright Bangalore Avantel Hyderabad, ECIL Hyderabad, MIDHANI Hyderabad, Zen Technologies Cyient Bangalore, CDG Chennai, TCS, HCL, Infosys, Cyient, Wipro, L&T Infotech, Tech Mahindra, Ramco, Accord, Quest, BaeS HAL, Tata Global CoE’s: Dassault Systems, Moog, Eaton, UTC, Airbus, TE Connectors/wires L-3 MRO Bangalore Merlin Hawk Bangalore, Lakshmi Machine Works Coimbatore, Balaa Works, PCFCT, Mtab, Bhastrik, Aerospace Engineers, Valeth Composites, FRP institute, Ucal-Jap systems, Muav, Avere Consulting,

This could happen in India by 2030 if the Indian industry takes advantage of the current opportunities and government policies to boost the Aerospace sector

Aerospace and Defence Industry Association of Tamil Nadu - ADIAT

• Help in developing A&D ecosystem by partnering with the Govt of

TN, on Infrastructure, skills and Investment promotion.

• Help in developing policies and frameworks for building an

ecosystem and bring competitive advantage to the industry.

• Work closely with various member industries to help them build

capacities and capabilities for them to compete globally.

• Support building Research and Development facilities.
• Help to create Design, Engg., and Manufacturing Capabilities
• Support in conceptualizing common test facilities for A & D sector.
• Work with Academia in setting up Center of Excellence in the field
• f A & D sector and skill development at the college/university.
• To actively work with Government in bringing investments in the A

&D sector.

• To help create the road map for the A & D Industry in the state.