Airbus annual procurement from India exceeds $500 million in 2015
In a first for any foreign aerospace and defence original equipment manufacturer (OEM) in India, Airbus Group exceeded the $500 million annual procurement mark from India in 2015.
Over 6,000 people at more than 45 suppliers, both public and private, are directly engaged in providing engineering and information technology services, aero-structures, detail parts and systems, materials and cabins to the Airbus Group for several of its leading platforms, including A380, A350 XWB, A320 Family, A330, C295W, A400M, Eurofighter, Tiger and NH90.
The group has now set its sight on exceeding $2 billion in cumulative procurement, covering both civil and defence, in the five years up to 2020.
Pierre de Bausset, 54, president of Airbus Group India, in an interview with Mint, said Prime Minister Narendra Modi's 'Make in India' campaign has received a shot in its arm with Airbus Group's annual procurement from India in 2015.
Bausset said the Group which is embedding Indian companies, including small and medium enterprises (SMEs), in its global supply chain as well as Indian engineers in its global engineering organization has a twopronged Make in India roadmap.
Embedding Indian companies firmly in our global supply chain is one of the pillars of our business strategy in India and we have done really well. In 2015, we crossed $500 million in annual procurement from India which is a 15% growth over 2014. This is a major feat considering that it is independent of any defence offset obligations. Don't take this as an indication of the possible growth rate going forward but just to give you a sense, in the last decade our procurement from India has grown 16 times.
Airbus Group sustains a very deep supply chain across the world and for us the important thing is to find suppliers who can meet our exacting quality standards, deliver on-time and on-cost consistently. This is what brought us to India. Here we have a supplier base which has the skill-set, and a readiness to develop. They have passion and ambition to be in the global league and that's exactly what we want. We are helping our suppliers get to the level that is required in this particular industry. It's a win-win.
That's because we have over 45 suppliers today in India contributing to all our commercial aircraft programmes. For example, Hindustan Aeronautics Ltd (HAL) makes half of the A320 Family forward passenger doors produced worldwide. Dynamatic Technologies Ltd makes flap-track beams for the A320 Family on a global single-source basis and has been contracted to manufacture them for the A330 Family.