 "As India orders more planes, aerospace firms ask govt for a helping hand")
Homegrown aerospace manufacturers are banking on a surge in orders from Indian airlines to bolster their business with international giants like Airbus and Boeing. Additionally, they are seeking governmental support to facilitate this growth, reported The Economic Times.
Aravind Melligeri, chairman of Aequs Aerospace, a key supplier to Airbus, stressed the importance of aligning procurement with order volumes. "We have to be in line with what our procurement of aircraft is. If India has a 10 per cent share of the order book, it should also have a 10 per cent procurement share – it's a fair ask," he said.
According to aviation consultancy firm CAPA, IndiGo, Air India, and Akasa currently boast an order book of nearly 1,700 aircraft, set to rise to around 2,000 by March 2025.
Melligeri stated that Aequs, which achieved revenue of Rs 1,000 crore in FY23, is securing fresh contracts due to the inability of suppliers in other regions to meet the demand. "Multiple suppliers are struggling to keep up with the new capacity demand that customers are having. Definitely, our flow of work has increased tremendously this year, as new orders are shifting to us," he told The Economic Times.
Melligeri further said that a policy push by the government is needed to boost 'Make in India' in aerospace. "A lot of countries in the Middle East have a policy which mandates manufacturing locally. The government needs to do something to increase India's pie. We don't need a mandate, we just need to promote India," he added.
The surge in orders has prompted global aerospace suppliers to enhance their sourcing from India. Airbus, in particular, is deepening its ties with Indian partners and expanding its activities and headcount in the country. Airbus CEO Guillaume Faury underscored India's significance in terms of activity, sourcing, and manpower, with plans to have approximately 5,000 Airbus employees in India by 2025. Airbus is also partnering with the Tata Group to establish a final assembly line for civil helicopters in India.
Dynamatic Technologies, recently awarded a contract by Airbus for manufacturing aircraft doors for the A220 family of aircraft, highlighted India's advantage as a preferred destination for global manufacturers due to its abundant pool of skilled engineers. Udayant Malhoutra, CEO of Dynamatic Technologies, emphasised the vast potential presented by India's young and skilled workforce, saying, "You are expanding and you're sitting on top of a young, skilled population over here. This is a massive opportunity at a macro level for us and you have to just visualise what this means."
