Global aerospace companies turn their eyes to India amid the crisis of western supply chains
By Nivedita Bhattacharjee
Bengaluru (Reuters) – Airbus, Collins Aerospace, Pratt & Whitney and Rolls-Royce are expanding parts sourced from India, spurring growth in the country’s emerging aerospace sector and urge local businesses to increase their games .
Bengaluru-based Hical Technologies and JJG Aero are among those riding the waves. Hical, a supplier of Raytheon Technology and Boeing, aims to double its revenues from the Aerospace Division to Rs 50 crore ($57.57 million) in three years.
Also, JJG Aero, located in Bengaluru’s industrial hub, took 12 years to earn $2 million, but it has surged to $20 million with the past six, said CEO Anuj Jhunjhunwala.
Growth is part of the surge in Asia-Pacific aerospace, with revenue forecast to be 54% above 2019 levels, while North America and Europe are lower by 3% and 4% lower It remains.
“We used to chase customers. Now they’re equally interested in valuing machine shops in India,” said Jhunjhunwala, with contracts signing more quickly and onboarding processes now being more than ever before. He added that it is being done quickly.
The company produces landing gear, wings, fuselage, electrical switches, and parts for motion control systems that are essential for flight safety and performance.
Since the pandemic, major manufacturers of planes and engines in the western world, whose production has been constrained by strikes, production caps and parts and labor shortages, want to source more from India to meet the growing demand for air travel. I say it.
“India is the best solution to supply chain challenges,” Hoo Morgan, senior vice president of aerospace procurement at Rolls-Royce, said last week at an industry event.
“Our engine volume is growing at around 20%, and traditional supply chains can’t support that,” Morgan said. “India… is the best cost market.”
The UK company plans to double its procurement from India within five years.
The country is one of the world’s largest aircraft buyers, but according to the recently formed Aerospace India Association, it accounts for just 1% of the global supply chain market.
“After Covid, the global aerospace industry reached an inflection point. This shift began in 2020, but aerospace is a slow-moving industry. Changes take time.”
More planes, more parts
India, the world’s third largest domestic aviation market, is one of the fastest growing driving demands for maintenance services and parts.