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

3 rd 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 offset 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 opportunities for Indian industry to collaborate and establish JVs, partnership and strategic alliances

India Engineering Advantage 1/5 th to 1/3 rd Cost productivity of US cost Top down approach • $250 + M invest. • 4,500 technologists in Deep & broad B’lore ; 7,000 total Capability At scale • 2,000 + Patents 80% In-house • Flange-to-flange work Success Factors 20% Partners �Ti�e Zo�e� Examples Market customer access support • $200 + M invest. • 7,000 technologists Talent Strategic • Test team HQ in India Ageing US management workforce workforce planning • IPR Regime Macro Structure & Con- • $100 + M invest. • ↓ ITAR environment ops • 2,000 technologists restrictions • FAA approved product Unparalleled Skill, Scale, and Cost Advantage 10

Global Aerospace OEMs have sourced from India for Cost Competitiveness; Offset Credits Follow Approximate Estimated Cost Indian Partner Investment Made by Offset Obligation at Project Procurement Advantage vs. OEM project Initiation Value / Ship sets incumbent supplier   4 Cabins / month ~ 20 international ~ 20% -25% S-92 Cabin Tata Advanced  ~60 Cabins delivered SMEs None Assembly Systems Ltd  LTA 5-10 years   2 empennages / month ~ 20 international ~ 20% -25% C-130 SMEs by end of 2014 Empennage None initially but Tata Advanced   2 empennages LTA 5-10 years and Center delivering offsets for Systems Ltd delivered, 16 CWB 2 Wing Box follow-on six C-130J (CWB) delivered   15 aircrafts / year ~ 25 international ~ 30% Hawk AJT  52 aircrafts delivered HAL SMEs None Assembly  LTA 5-10 years   21 units / month LTA 5-10 years ~ 30% - ~40%  ~ 4000 sets delivered (Project started in A-320 Forward HAL None  Sole source by 2017 1990) Passenger Door   40 units / month LTA 5-10 years ~ 40% Airbus Single  ~2000 sets delivered Aisle Flap Track DTL None Beams   First delivery in 2016 ~ 20 SMEs hired ~ 40%  10 units / month from within India None 407 Cabin DTL  LTA 5-10 years OEMs see significant cost advantage at world-class quality levels 11

Expertise Needed for Aerospace Industry  Aerospace Engineering R&D Analysis  Mechanical Engineering Design  Electronics / Avionics Manufacturing Flight Testing  Metallurgy / Material Science  Manufacturing / Industrial Engineering Project Management  Chemical Engineering Systems Engineering  Mathematicians / Computer Programmers Supply Chain Management Operations  Safety / Certification specialists Information Technology  Pilots / crew / customer engagement specialists  Maintenance, Repair, Overhaul specialists Business Development Finance  Program Management / Business Management Economics  Writers / Lawyers, Accountants

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 of 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.