Airbus Group Eyeing Big
Airbus has made it clear that the group will be able to invest in the Indian defence sector only if it get contracts as it takes ‘two to tango’
THE EUROPEAN AIRCRAFT CONSORTIUM Airbus Group is eyeing big on India and in spite of frustrating experiences and dilatory attitudes of the Indian bureaucracy and defence leadership, the company remains hopeful of bagging many ambitious projects that is simply lying in store for them, but not yet matured. The Airbus Group India leadership is hopeful on many billion dollars projects, for which the company is offering Indian Government to manufacture them under ‘Make in India’ programme. These include the offer to transfer the Panther helicopters assembly line to India and make India a global hub.
The group has also almost successfully negotiated the manufacture of C295 transport aircraft in India. The Ministry of Defence (MoD) has already approved the acquisition of 56 Airbus C295 transport planes. This will be built in partnership with Tata Advanced Systems. Airbus will assemble 40 of them and supply rest of them off the shelf.
Another lucrative deal, the Airbus A330 MRTT (multi-role tanker transport) that was cleared by the UPA Government in January 2013, but yet to see the light of the day. Airbus Group’s India President and Managing Director Pierre Bausset says that the company is waiting for guidance from the MoD for the final go-ahead to clear the fine print of the commercial agreement.
Airbus is managing its India activities mostly from Bengaluru where 80 per cent of the employees are engaged in high value engineering. “Collaboration is in our genes as European consortium where 6,000 staff are working for us. Huge capabilities exist in Bengaluru,” said Bausset. “‘Made in India’ is a great opportunity to fulfil the defence needs you have in the
defence sector. This is why Airbus Helicopters has partnered with Mahindra Defence to establish in India a state-of-the-art industrial cluster to locally produce and deliver Panther (AS 365MBe) in response to the 110 naval utility helicopters, Fennec (H125M) 200 + reconnaissance and surveillance helicopters (RSH) and Caracal (H225M) for the foreseen 120+ naval multirole helicopters (NMRH).”
According to Bausset, Airbus Group and Mahindra Defence joint venture will set up a robust and efficient helicopter industrial base if the above three programmes become a reality. Airbus intends to transfer state-of-the-art technologies from Airbus Helicopters and its suppliers; Enhance self-reliance and competitiveness of the Indian helicopter manufacturing ecosystem; and enhance competitiveness in the life-cycle management of helicopters together with Indian companies including DPSUs and MSMEs. Thus private enterprise is the key to that success. Strategic and tactical needs with relevant technologies can be met with partnership approach. Bausset added: “That is why what we buy in India we make in India.”
Airbus has appointed ‘Make in India’ officer Ashish Saraf who will be primarily focused in industry development through advance industry partnerships and forge new ones. Saraf said, “We intend to develop supply chain for metallic structures. Position India as key players in the global ecosystem. We have defined a three step programme. We plan matchmaking session between Airbus and Airbus big tier ones. Identify opportunities with Indian business for major programmes that we will have.”
First is the Panther helicopter final assembly line. Establish in India a global hub for Panther supply. When we do set up final assembly line, we propose to set up supply chains for the manufacturers of components, which are likely to create skilled aerospace jobs for over 10,000 qualified youth.
According to Xavier Hay, the head of the Airbus Helicopters, “Our aim is to strengthen its position in the Indian helicopter mar- ket despite a challenging environment. Presently Airbus has over 50 per cent of the registered civil and para-public deliveries in India. The 2 H125 are the benchmark for high altitude operations. Airbus has also offered H225M Caracal 120+ naval multi-role helicopter. Panther AS 365MBe in response to 110 naval utility helicopters. Airbus Helicopters is ready to support new segments in India besides helicopter emergency medical services.”
According to Venkat Katkuri, head of the Airbus Defence and Aerospace in India, ”The C295W aircraft, replacement for IAF 56 medium-utility transport aircraft with Indian partners Tatas is going through technical evaluation phase, the group is presently discussing with end customer and evaluation phase in near future and have submitted the proposals. Six A330 MRTT were selected by the Indian Government in January 2013 with nose and drogue capability, acquisition stagnated at contract negotiation stage, awaiting MoD’s guidance on next step.”
Venkat Katkuri also informed, “We are glad to share that MRTT, which can refuel all frontline aircraft including Su30MKI, has got good orders from France, Korea and Singapore. The Royal Australian Air Force has given orders and it is also selected by air forces of the Netherlands, Saudi Arabia and UAE.” Asked about MMRCA, Bausset said, “MMRCA for Eurofighter is a closed business for us. We are moving ahead focusing on current campaigns.”
In response to a question on AWACS Bausset said: “We are discussing with the Defence Research and Development Organisation (DRDO) technical demonstrator with the technical team of DRDO.” Asked about the 49 per cent FDI limit in defence sector, Bausset cautioned that 49 per cent FDI limit in defence sector cannot fetch the Indian industry or the right original equipment manufacturer that it is looking at under the ‘Make in India’ programme of the Government of India. Bausset also made it clear that the group will be able to invest in the Indian defence sector only if they get contracts as it takes ‘two to tango.’