BELGAUM- Homegrown aerospace manufacturers are banking on the surge in orders from Indian airlines to secure more business from global giants like Airbus and Boeing.
They are also seeking government support through favorable policies.
Indian Aerospace Manufacturers
Aravind Melligeri, chairman of Aequs, a leading components supplier to Airbus, stated, “We need to align with our aircraft procurement. If India has a 10% share of the global order book, it should also have a 10% share in procurement – it’s a reasonable expectation.”
According to aviation consultancy firm CAPA, IndiGo (6E), Air India (AI), and Akasa Air (QP) have nearly 1,700 aircraft on order from Airbus and Boeing. This number is expected to rise to about 2,000 by March 2025.
Aravind Melligeri, chairman of Aequs, reported that the company, which achieved revenue of Rs 1,000 crore in FY23, is securing new contracts due to other suppliers’ inability to meet the rising demand.
“Many suppliers are struggling to meet the new capacity demands from customers. Consequently, our workload has increased significantly this year as new orders are being redirected to us,” Melligeri explained.
He emphasized the need for a governmental policy push to bolster the “Make in India” initiative in the aerospace sector.
“Several Middle Eastern countries have policies mandating local manufacturing. The Indian government should take steps to enhance India’s share in this sector. We don’t need a mandate, just a promotion of India,” Melligeri suggested.
Airbus CEO Remarks
The surge in order books has led global aerospace suppliers to increase their sourcing efforts.
Indian aerospace manufacturing received a significant boost when Air India placed plane orders, prompting Airbus to expand its global supplier footprint to dollarize its sales, reported ET.
Airbus CEO Guillaume Faury highlighted the company’s growing relationship with Indian partners, emphasizing their roles in IT, engineering, and production.
“In terms of activity, sourcing, and team size, we will soon have 5,000 Airbus employees in India. This milestone should be reached by around 2025. It’s a very significant development,” Faury shared with analysts last month.
Airbus is collaborating with the Tata Group to set up a final assembly line for civil helicopters in India.
Dynamatics Technologies, which recently secured a contract from Airbus to manufacture all doors for the A220 aircraft family, believes India’s large pool of engineers makes it an attractive option for global manufacturers.
Dynamatics is also the sole supplier of the flap track beam assembly for the A320 family. “With the expansion, you’re leveraging a young, skilled population here. This presents a massive macro-level opportunity for us, and you need to visualize the significance,” said Udayant Malhoutra, CEO of Dynamatics.
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