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Indian Private Sector Defense Companies

Aug 3, 2016
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Indigenous Production Of Defence Equipments In INDIA

As India is moving towards transformation from a regional power to a global power, the defence sector is increasingly occupying even bigger space in the country’s long term strategic planning. As India is gaining power it is increasing its purchasing power as well with several high-end defence deals either in the pipeline or being envisioned to strengthen India’s force structure. Estimates show that the Indian Air Force will have more than 1000 fighter jets and around 60 squadrons by 2030. India will be spending more than USD 80 billion on capital acquisitions in the 2010-2015 timeframe.

The Indian government is very clear and focused in its vision for its defence sector - indigenization of the industry and acquiring advanced technologies which will in turn help to reduce dependence on imports from other countries around the world. In nitty-gritty, it would create a ripple effect that the government is hoping to initiate in this sector. In this evolving Defence value chain it would be unfair to ignore the role that human resource skills, Research and Development (R&D) and the long standing small and Medium Enterprises (SME) Defence Public Sector Units (DPSUs) suppliers and ordinance boards are going to play.

As an emerging economic superpower, India’s spending on defence is on a rapid upward trajectory. The main driver appears to be emerging rivalry with China – especially as Beijing seeks to increase its presence in the Indian Ocean. However, traditional rivalry with Pakistan as well as increasing internal security issues are also factors.

A Brief About The INDIAN Defence Sector
The opening up of the Indian economy during the early nineties heralded an era of unprecedented industrial growth in India. The growth rates matched those of the fastest growing economies. A confident and resurgent Indian Defence Industry is making forays into almost all the sectors of manufacturing. Lately, the huge opportunities for growth within the domestic and global defence and aerospace industries have attracted the attention of Indian industry.

India which is the world’s fourth largest fighting has the strength of defence equipments with regards to ‘State of the Art’, ‘Matured’ and ‘Obsolescent’ equipment is 15, 35 and 50 percent respectively. This suggests that the Government will have to make serious efforts towards upgrading its defence resources either by developing or procuring defence equipment and systems. Moreover, modernization, up-gradation and maintenance of the existing equipment will also provide immense opportunities to the industry. India is one of the largest global military spenders too. The defence budget for 2009-10 has increased by 34.19 percent over the previous year’s budget estimate (BE) of INR 1,056 Bn.

The Department of Defence Production of the Ministry of Defence is responsible for the indigenous production of equipment used by the Indian Armed Forces. It comprises the 41 Indian Ordnance Factories under control of the Ordnance Factories Board and 8 Defence PSUs namely, HAL, BEL, BEML, BDL, MDL, GSL, GRSE and Midhani.

The Indian Armed Forces are currently the world's largest arms and ammunitions importer, with Russia, Israel, and to some extent, France and United States being the primary foreign suppliers of military equipment. The history and development of Indian ordinance factories is directly linked with the British reign in India. The East India Company considered military hardware to be a vital element for securing their economic interest in India and increasing their political power. In 1775 British authorities accepted the establishment of the Board of Ordnance at Fort William, Calcutta. This marks the official beginning of the Army Ordnance in India.

In 1787 a gunpowder factory was established at Ichapore; it began production in 1791, and the site was later used as a rifle factory beginning in 1904. In 1801, Gun Carriage Agency (now known as Gun & Shell Factory, Cossipore) was established at Cossipore, Calcutta, and production began on 18 March 1802. This is the oldest ordinance factory in India still in existence.

The Indian manufacturing industry has been a significant contributor to India’s GDP and has displayed impressive growth in the last ten years. However, the sector’s 16 percent share in GDP is among the lowest compared to other the rapidly growing developing economies and recently released National Manufacturing Policy has articulated an inspirational objective to increase this share to 25 percent over next ten years.

A vibrant domestic defence manufacturing sector can be a vital nail to help realize to fulfill the vision of becoming a super power in the defence sector. The Defence Production Policy 2011 has reiterated the strategic and economic importance of self–reliance in the area of defence. Developing a strong defence manufacturing sector enhances security as it reduces reliance on foreign suppliers, provides opportunity to create IP and domestic technologies and capabilities which often have significant civil applications, provide a platform to tap export markets. Most importantly it has a potential to create over one million jobs.

Defence spending in India has grown at about 17 percent in the past years, and with this India has came forth as one of the largest arms importer in the world. By 2014, it is expected that India would become the third largest defence spender after the US and China. Despite this huge market, the current policies and structure of the industry has constrained the domestic defence production with only 30 percent of the demand being met internally. The participation of private sector is even lower at about 10 percent that too mostly from Tier II or III suppliers.

Historically, India has always favoured the public sector over the private in the areas of defence production. India’s first industrial–policy resolution in 1948 made it clear that a major portion of industrial capacity was to be reserved for the public sector including all arms production. When this document was revised in 1956, it placed the munitions, aircraft and shipbuilding industries in public sector under central Government control, preventing private sector production.

Major Public & Private Sector Undertakings In Defence Sector
  • Hindustan Aeronautics Limited (HAL) - Design, development, manufacture, repair and overhaul of aircraft, helicopters, engines and their accessories.
  • Bharat Electronics Limited (BEL) - Design, development and manufacture of sophisticated state-or-the-art electronic equipment components for the use of the defence services, para-military organizations and other government users.
  • Bharat Earth Movers Ltd (BEML) - Multi-product Company engaged in the design and manufacture of a wide range of equipment including specialized heavy vehicles for defence and re-engineering solutions in automotive and aeronautics.
  • Mazagon Dock Limited (MDL) - Submarines, missile boats, destroyers, frigates and corvettes for the Indian Navy.
  • Garden Reach Shipbuilders & Engineers Ltd (GRSE) - Builds and repairs warships and auxiliary vessels for the Indian Navy and the Coast Guard.
  • Bharat Dynamics Limited (BDL) - Missiles, torpedo counter measure system, counter measures dispensing system.
  • Mishra Dhatu Nigam Limited (MIDHANI) - Aeronautics, space, armaments, atomic energy, navy special products like molybdenum wires and plates, titanium and stainless steel tubes, alloys etc.
  • Goa Shipyard Ltd (GSL) - Builds a variety of medium size, special purpose ships for the defence, Indian Coast Gaurd (ICG) and civil sectors.
  • Tata Advanced Systems Limited (TAS) - Design, manufacture and supply of composite components, sub-assemblies for applications in aerospace division and solutions for personal armour, vehicle armour and special applications.
  • Larsen and Toubro - Design, development and manufacture of integrated land based /naval combat/missile systems, defence electronics & control systems and integrated naval engineering systems.
  • Kirloskar Brothers - Infrastructure projects (water supply, power plants, irrigation), project and engineered pumps, industrial pumps.
  • Mahindra Defence Systems - Total solutions for the range of light combat/armoured vehicles, simulators for weapons & weapon systems, sea mines, small arms, variants and associated ammunition.
  • Ashok Leyland - Design, development and manufacture of special vehicles, serving Indian Armed Forces and international customers such as US army.
INDIA is planning to set up 12 Development Centers with state of the art CAD/CAM facilities to boost R&D efforts in the ordnance factories which will prove to be a positive initiative. In real battle conditions more than esoteric high end technologies the day to day usable technology and product up-gradation helps the fighting forces more. The DPSUs have also embarked on intensification of their R&D effort – the initiatives taken by HAL (10 R&D Centers), BEL and BDL are particularly encouraging.

In this planning stage and transformed settings the country enjoys advantages like availability of investible capital, accessibility to earlier denied dual technologies, willingness for cooperation and collaboration by defence production giants - particularly from the West in the wake of the economic downturn. India today has a scientific community that is globally competitive and a pool of skilled manpower with long years of experience and knowledge relating to Defence industries.

There is also a new enthusiasm in India’s public sector enterprises. For acquiring self reliance – cutting across the barriers of public and private sectors, the Indian Defence Ministry can perhaps take a leaf from the experience of ISRO which outsources components, hardware and sub-systems for its launch vehicles and satellites from the Indian industrial units, both in the private and public sectors.

Vision, convergence, speed and de-bureaucratization of defence production and technology development should be the guiding Mantra of India in the coming decades.





Private defence firms keen on Make in India
Imports contribute 75% of India’s defence equipment needs; the domestic private sector’s share is just 5%

P.R. Sanjai


The Akash missile was displayed during the Make in India Week in Mumbai in February. Photo: Abhijit Bhatlekar/Mint
Mumbai: Domestic telecom equipment maker Himachal Futuristic Communications Ltd (HFCL) is known for two things: in the late 1990s, it made outrageous bids for telecom licences and later on it had its share of run-ins with the capital markets regulator for its suspected involvement in rigging share prices in a case dating back to 1999-2001.

But that’s the past and it’s makeover time as the company, with revenue of Rs.2,553 crore in 2014-15, has won government licences to design, develop and manufacture aircraft and unmanned aerial vehicles.

HFCL is just one of the private firms eyeing defence projects. Between January 2001 and February 2016, the commerce ministry has granted 333 industrial licences to private firms for defence manufacturing, according to data on the department of industrial policy and promotion (DIPP) website.

They include Micronel Global Engineers Pvt. Ltd, Marine Electrical (I) Pvt. Ltd, Defsys Solutions Pvt. Ltd, Naistoco India Pvt. Ltd, Comint Systems and Solutions Pvt. Ltd, Ananth Technologies Ltd, DCX Cable Assemblies Pvt. Ltd and OIS Advanced Technology Pvt. Ltd.

There are more familiar names too: Tebma Shipyards Ltd, Premier Explosives Ltd, Titagarh Wagons Ltd, Taneja Aerospace and Aviation Ltd, Punj Lloyd Aviation Ltd, Dynamatic Technologies Ltd, Bharati Shipyard Ltd, Ashok Leyland Defence Systems Ltd and AMW Motors Ltd.

And then there are big, established ones such as Bharat Forge Ltd (BFL), Reliance Industries Ltd (RIL), Tata group, Larsen and Toubro Ltd (L&T), Godrej Group and the Mahindra Group.

Anil Ambani’s Reliance Group and the Adani Group’s Adani Defence Systems and Technologies Ltd are the latest to enter the race.

So, why is there a rush to be part of the defence sector?

It is partly the result of Prime Minister Narendra Modi’s emphasis on defence equipment as part of his Make in India campaign.

This government thrust for defence too has a reason. India is the world’s largest importer of defence equipment and spends around $24 billion a year, according to Stockholm International Peace Research Institute. And this means import substitution and indigenization.

Domestic private firms have a significant opportunity, says Kabir Bogra, associate partner at New Delhi-based law firm Khaitan and Co. “The serious players in the space have been investing for the past decade or more (Tata group, BFL, L&T) and have built a portfolio in electronics, land systems, aerospace products and short-range missiles. Most of these are either in talks or have already concluded framework arrangements with foreign original equipment manufacturers (OEMs), therefore to a large extent, the preparatory work is completed or in progress,” he said.

For instance, BFL has tied up with Israel defence tech firm Rafael Advanced Defense Systems Ltd and Elbit Systems Ltd and UK-based Rolls-Royce Corp. Similarly, Tata group has tied up with US-based firms Sikorsky Aircraft Corp., Lockheed Martin Corp. and Boeing Co.

“However, for them to deliver on their potential, the government needs to be commercially sensitive and a few large contracts need to be commissioned. Most notably, NUH (naval utility helicopter) tender needs to be taken on priority along with artillery products to send a clear signal to the domestic industry that things are moving. The ministry of defence needs to commit itself to time frames for concluding these,” Bogra said.

The tender to buy NUH was scrapped in 2014 after years of process or inviting proposals and tenders. But now things are different as the government aims to revive the private sector. According to A.K. Gupta, secretary, department of defence production, ministry of defence, the private sector now has the opportunity to pick up a 25% share of defence production.

“Around 25% of the defence PSU (public sector undertaking) turnover can be off-loaded to the private sector, and the ministry has already de-licensed 60-70% of the production,” he said earlier this month in Mumbai.

Public sector undertakings in defence sector have a cumulative turnover of about Rs.50,000 crore, he said.

Last week, Tata group said it expects defence and aerospace business to increase its revenue by 7.5% to Rs.2,650 crore in the year to 31 March.

Defence and aerospace are important growth drivers identified by Tata group chairman Cyrus Mistry and significant investments will be made in these areas, said Mukund Rajan, member, group executive council, and the brand custodian of Tata Sons Ltd.

Tata group companies engaged in the defence and aerospace sector include Tata Advanced Systems Ltd (TAS) and its subsidiaries, Tata Advanced Materials, Tata Motors Ltd, Tata Power Strategic Engineering Division, TAL Manufacturing Solutions, Tata Technologies, Tata Consultancy Services Ltd, Tata Steel Ltd, and Tata Elxsi Ltd.

Defence has the potential to contribute 15% to Tata Motors’ revenue from the current 3% if it wins the order to make Future Infantry Combat Vehicles or FICVs, for the Indian Army, said Vernon Noronha, vice-president of defence and government business at Tata Motors.

The contenders for the FICV contract include L&T, Mahindra and Mahindra, Reliance Defence and Engineering Ltd (formerly Pipavav Defence) and Titagarh Wagons Ltd. The order could be worth about Rs.60,000 crore over the next few years, according to defence ministry officials.

Currently, the order book of Tata Advanced Systems (TAS), the aerospace and defence arm of Tata group, stands atRs.4,500 crore. A majority of it are export orders, said Sukaran Singh, chief executive of TAS.

It expects to get more orders in the domestic market, he said. TAS is working on projects, including missiles, radars, aerospace and unmanned aerial vehicles and counts companies such as Lockheed Martin Corp., Sikorsky Aircraft Corp., Boeing Co., Pilatus Aircraft Ltd, Cobham, RUAG and Rolls-Royce as its customers.

In November, TAS formed a joint venture with Boeing to make aerostructures for aircraft, deliveries for which will start from 2018.

Tata Motors, in partnership with the state-run Defence Research and Development Organisation, has also designed and developed India’s first amphibious infantry combat vehicle Kestrel.

Last week, the auto maker tied up with BFL and General Dynamics Land Systems to develop FICVs for the Indian armed forces.

Tata Motors has supplied over 100,000 vehicles to the Indian military and paramilitary forces, so far, and expects its future growth to come from combat vehicles, the group’s executives said.

Tata Power SED, another group company, is planning to invest Rs.700 crore to set up a defence equipment manufacturing plant in Karnataka, Tata executives said on Wednesday. It plans to double investments at this plant over the next two to three years.

To be sure, currently imports contribute almost 75% of the defence equipment needs; public sector and domestic private sector players contribute only 20% and 5%, respectively.

A January report of domestic brokerage ICICI Securities Ltd said it is difficult to track any other industry with similar import-substitution opportunity all through the history of independent India.

“While the growth of the defence sector will follow along its strategic and technological requirements, the domestic defence industry is still in its infancy—which translates into a huge opportunity for investors and Indian enterprises,” ICICI Securities said.

The brokerage firm also foresees hurdles for private enterprises. “Across platforms, indigenization has more or less trailed the intended goals, with imports inevitably making up for the shortfalls. Further, execution of platforms has faced the typical headwinds of higher book-to-bill ratios for defence PSUs. While DPP (defence procurement procedures), 2013, has created excitement along with Make in India projects, it may take significant time to fructify. Over the next five years, we see limited prospects of meaningful indigenization barring radars and missiles,” the report noted.
 
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Tata firm TAL dispatches floor beams for Boeing from Nagpur

TAL Manufacturing Solutions targets growth as it offers cutting edge aerospace technology to two leading airplane makers, Boeing and Airbus

P.R. Sanjai



Currently, TAL is the only non-US facility to supply ACFBs to Boeing for its 787-9 Dreamliner, and it will also supply this component to the soon-to-be-built 787-10 Dreamliner.

Mumbai: Tata Group-controlled TAL Manufacturing Solutions Ltd (TAL), a wholly-owned subsidiary of Tata Motors, has dispatched 5,000th Advanced Composite Floor Beam (ACFB) to plane maker Boeing Co. for its 787-9 and 787-10 Dreamliner aircraft.


These ACFBs are shipped out of the aerospace manufacturing facility located in MIHAN SEZ, Nagpur.

Currently, TAL is the only non-US facility to supply ACFBs to Boeing for its 787-9 Dreamliner, and it will also supply this component to the soon-to-be-built 787-10 Dreamliner. The ACFBs are shipped to Boeing partners in Italy, Japan and the US.

“We are despatching the 5000th advanced composite floor beam for Boeing 787s-9s and Boeing 787-10. The 787-10 is yet to be manufactured. TAL was given the order for the first five 787-19 floor beams because of its reliable and impeccable delivery and quality performance,” Rajesh Khatri, executive director and chief executive officer, TAL Manufacturing Solutions Ltd.

TAL is six months ahead of its original schedule of despatch of floor beams.

“We have invested over Rs.250 crore at the Boeing-dedicated facility in Nagpur. We started commercial production in March 2015,” he said.

Khatri said TAL has a headcount of 880 in Pune and Nagpur, of which 550 are based in Nagpur.

Boeing India President, Pratyush Kumar, called it a major milestone not just for Boeing and TAL, but also for India.

TAL did not disclose the value of the contract.

The Tata firm is associated with other original equipment manufacturers. “We are associated with the A (Airbus) and B (Boeing) of aircraft manufacturing,” Khatri said.

TAL has signed a contract aerospace firm RUAG for supplying parts that will go into A320 planes made by Airbus SAS.

The contract with RUAG is worth $170 million for making 550 sheet metal, machine parts and sub assemblies, which are fitted in to the Airbus A320 family of aircraft.

“We are exclusive suppliers for these parts for RUAG,” Khatri said.

TAL is also working on robots for commercial purpose.

“We are working towards the formal commercial launch of robots, TAL BRABO!,” Khatri said.

All three will help us to develop a sustainable and profitable business model enabling TAL to clock a five-fold increase in revenue of over Rs.1,000 crore from Rs.224 crore over the next five years, he said.

He added that TAL would also increase headcount to 1,250 from its current 880.

Aerospace is profitable and robotics will also turn profitable from next year, once commercial production starts, he said.

“TAL is working with next generation aerospace technology with two leading airplane makers. We intend to be the market leader in civil aerospace manufacturing and among the top three aerospace manufacturers in India,” Khatri added.

http://www.livemint.com/Industry/wZ...tches-floor-beams-for-Boeing-from-Nagpur.html
 
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Tata Technologies plans to acquire companies to expand its defence footprint

Tata Technologies CEO Warren Harris says the company expects a revenue of about $200 million from these acquisitions


CEO Warren Harris said that Tata Technologies’ business is about 70% automotive, 11% aerospace, and 12 % industrial heavy machinery.

New Delhi. Tata Technologies Ltd plans to acquire companies to expand its defence footprint over the coming four years, a top executive said.

“In the last six years our compound annual growth rate is 16%,” Tata Technologies CEO Warren Harris said in an interview to Washington-based DefenseNews.com. “We fully expect to be able to maintain that organically. Our trajectory over the next four years organically sees us going to $800 million, so we see about $200 million in revenue that will come in from acquisitions.”

Tata Technologies is part of the $100 billion Tata Group.

Harris said that Tata Technologies’ business is about 70% automotive, 11% aerospace, and 12 % industrial heavy machinery.

Harris wants to see aerospace grow at a much higher rate than automotive in order to maintain a balanced portfolio.
Under the government led by Prime Minister Narendra Modi,- India has moved swiftly to seal defence contracts.

“We’re certainly very bullish about the prospects for the Indian government to discharge some of the plans that have been built in for the last 10 years,” he said. “We’ve been expecting this wave of procurement decisions that have not been realized, but I think over the last 12-18 months we’re really starting to see signs that will start to happen.”

India, which imports most of its defence needs, requires foreign manufacturers to source content upto a certain percentage of the total value of the deals they win from the government, under a so-called offsets policy. More international procurement widens opportunities for Indian manufactures.

Harris believes buying smaller firms will be easier .

“You take in the United States, most of the big defence manufacturers have grown up through the support of a supply chain that has a very long tail. There are a lot of small companies providing engineering services, IT services, some of which are commodity services, many of which in some areas are very strategic,” Harris said.

“Those organizations have not fulfilled their potential because of limited cash, access to the right appropriate resources, global footprint — and what we hope to offer those organizations is all of those things, and what we’re hoping to get through the relationship is the type of relationship that is difficult, again, for an outside organization to fast-track their way into,” he added.

India’s high defence spending, along with the government’s ‘Make in India’ initiative, are expected to encourage the entry of domestic players in the country’s defence sector, research firm MarketsandMarkets said in its recent report.

“The offset requirements as stipulated by the Indian government for the foreign players could present a challenge for foreign players as domestic companies do not have the adequate manufacturing capabilities. However, various large players such as Mahindra & Mahindra and Tata group have been setting up manufacturing facilities in order to cater to the potential rise in demand for indigenous defence equipment,” it said.

http://www.livemint.com/Industry/JL...ans-to-acquire-companies-to-expand-its-d.html

 
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Strategic partner in defence
Fourteen Tata companies provide critical and indigenous technologies to the Indian defence sector




From left: Sukaran Singh, director, Tata Advanced Systems; Dr Mukund Rajan, brand custodian and chief ethics officer, Tata Sons and member of the Group Executive Council; Rahul Chaudhry, chief executive officer, Tata Power Strategic Engineering Division; and Vernon Noronha, vice president, defence and government business, Tata Motors, at the roundtable discussion on Tata companies in the defence sector held in New Delhi
The Tata group, which has a strong presence in the Indian defence sector, expects a 40 percent growth in revenues from its defence portfolio in fiscal 2014, Dr Mukund Rajan, brand custodian and chief ethics officer, Tata Sons and member of the Group Executive Council, announced at a media roundtable in Delhi on Wednesday.


“Our aggregate revenues for financial year 2013 from the defence sector was over Rs17 billion,” said Dr Rajan. “For financial year 2014, we expect revenue growth would be at least 40 percent. The order book size for our businesses in the defence sector are currently in excess of Rs80 billion.”

The group’s strategy and vision for the defence sector was unveiled at the roundtable, held just days before the eighth edition of the biennial Defexpo India 2014. The land, naval and internal homeland security systems exhibition will be held at New Delhi’s Pragati Maidan between February 6 and 9. The Tata contingent will have a strong presence at Defexpo.

Fourteen Tata companies are engaged in providing support to the Indian defence sector. The key players include TAL Manufacturing Solutions, Tata Advanced Systems, TCS, Tata Elxsi, Tata Industrial Services, Tata Motors, Tata Power (Strategic Electronics Division) and Titan Company.

Tata companies have been involved in the defence space for close to 60 years. They have tried to address the defence requirements both by bringing in critical technologies through appropriate partnerships and indigenous developments.

Click here for Tata in defence brochure

With its expertise in technology and product management capabilities, the Tata group is well-positioned to enter any area where the Indian Ministry of Defence wishes to build private sector capabilities.

The Tata group believes that there is a lot it can do as a reliable partner for the government in the defence sector, through successful evolution of products and service offerings. It also has the ability to invest in innovation and collaborate with the government to co-create and develop new technologies and support development of capabilities.

Dr Rajan underlined that the core purpose of the group was long-term value creation for stakeholders. “The Tata brand has been built over the last 140 years on the strong premise that all businesses should comply with high standards of corporate governance and ethical conduct,” explained Dr Rajan. “And these two facets — long-term orientation and commitment to ethics and values — are particularly apt for companies that cooperate in the defence sector. There is very high premium, particularly where the government is involved, in finding partners who have the commitment for the long-term and who are committed to ethical conduct.”

The Tata group has increased its footprint in integrating and supplying systems of strategic importance in the areas of mobility solutions, aerospace, missiles, radars, network-centric warfare enablers, electronic warfare systems, manned and unmanned platforms (land, aerial, marine and submarine), integration of C4I (command, control, communications, computers and intelligence), command and control systems for air defence and naval combat, battlefield transparency systems, information assurance and home land security systems.

The Indian government is trying to reduce the over-dependence on imports by stimulating indigenous innovation and developing an export edge in the defence sector. Increasingly, it is seeking the involvement of the private sector and adopting the public-private partnership (PPP) model, similar to what has happened in many countries including the US, the UK and France.

Present at the roundtable were senior executives from three leading Tata companies having a significant exposure to the defence sector. They included Sukaran Singh, director, Tata Advanced Systems (TASL); Vernon Noronha, vice-president, defence and government business, Tata Motors; and Rahul Chaudhry, CEO, Tata Power SED.

Related media reports
Tatas expect 40% rise in revenue from defence sector
Tata Group also looking for bigger defence sector pie
The Tata companies that have a presence in the defence sector are also emerging as major exporters. According to Mr Singh, annual exports add up to between Rs2 billion and Rs3 billion every year for TASL. The company, which is fully owned by Tata Sons, has signed defence contracts worth Rs40 billion, including for a prestigious one relating to the supply of key systems for the medium-range, surface-to-air missiles being co-developed by India and Israel.

Tata Motors has been exporting Rs1 billion worth of military vehicles annually for the past three years, pointed out Mr Noronha. This year it got an order for the supply of over 500 vehicles to a United Nations peace-keeping force in Western Africa; the order, worth Rs2.2 billion, is for 4x4 and 6x6 vehicles.

The company is the leading supplier of mobility solutions to Indian security forces; it has supplied over 100,000 vehicles to the military and paramilitary forces over the last 60 years. It is now moving strategically from being a logistics support player into the combat vehicles segment.

Tata Power SED has emerged as one of the largest prime contractors in the Indian defence sector. It has executed programmes of national importance including the Pinaka launcher for Akash missiles and also undertaken modernisation of airfield infrastructure. It is also possibly the only Indian private sector company to have won three prime contracts against global competition in India.

According to Mr Chaudhry, the SED started operations in 1974 as a strategic and defence focused R&D unit. “This pedigree is leveraged to develop and gain ‘know-why,’ not just ‘know-how,’ he explains.

The unique strength offered by the Tata group is that its companies can come together and provide convergent solutions according to the customers’ requirements. One outstanding example is the systems integration done by Tata Power’s SED on the chassis of Tata Motors for the Akash missile systems. Noted Dr Rajan: “There is a whole bunch of areas where, as projects become complex, Tata companies will work together and provide convergent solutions for the defence services.”

Fact file

Tata Motors

  • Associated with defence since 1958.
  • Over 100,000 vehicles supplied to Indian military and paramilitary forces.
  • Availability of equipment whenever required.
  • Timely supply of key spare parts to minimise downtime.
  • High indigenous capability.

Tata Power SED

  • Started operations in 1974 as a strategic and defence focused R&D unit.
  • Pedigree is leveraged to develop / gain ‘know-why,’ not just ‘know-how’.
  • State-of-the-art infrastructure to enable integrated design to manufacturing supported by validation infrastructure.
  • Control over sub-systems for life cycle support, refresh and upgrades.

Tata Advanced Systems

  • Focus on seven areas — missiles, aerospace, radars, unmanned aerial vehicles, optronics, command and control, homeland security.
  • Produces sub-systems for Indian customers and global OEMs.
  • Operates 10 production facilities across three cities.
  • More than 450,000 sqft of production space in operation with land available to double the space.
  • Operations have achieved global benchmarks in terms of cost and quality.
 

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Wipro Infra Engg to acquired Israel based Givon in all-cash deal

Deal will help acquirer expand product portfolio and global footprint, and strengthen customer ties in Aviation and Aerospace

BS Reporter | Pune August 1, 2016 Last Updated at 18:26 IST


Wipro Infrastructure Engineering (WIN), hydraulic solutions provider and part of Wipro Enterprise, today announced that it has signed a definitive agreement to acquire HR Givon(Givon), an Israel-headquartered manufacturer of metallic parts and assemblies for the Aerospace industry, in an all-cash deal.

Givon manufactures structural parts and assemblies which form part of the fuselage, wings and empennage of an aircraft. The 46-year-old company is a certified Tier-1 supplier and counts leading global original equipment manufacturers (OEM) among its customers. It has three manufacturing plants, two in Israel and one at Everett, Washington in the US.

This acquisition will help WIN broaden its product portfolio, expand global footprint and strengthen customer relationships in the Aviation and Aerospace industry.

"Givon has a strong tradition of technical expertise and enduring client relationships. I am confident that Wipro and Givon together will be a significant force in key markets. The synergies from our combined portfolio and locational proximity will be a key enabler to build and nurture successful customer relationships," said Pratik Kumar, Chief Executive Officer, Wipro Infrastructure Engineering.

India is the largest buyer of Israeli military equipment while Israel is the second-largest defense supplier to India after Russia. Independent estimates put the potential offset opportunities at $10 billion and the acquisition of H.R Givon will strengthen WIN's ability to address this market.

WIN sees the Aerospace industry as strategic to its future. In 2013, WIN set up India's first Aerospace actuator manufacturing facility at the Devanahalli Special Economic Zone, near the Bangalore International Airport. Plans are on the anvil to expand into multiple product lines and enter into technology partnerships with leading Aerospace companies.

"We are delighted with the opportunity to join hands with Wipro and this gives us an opportunity to bring to the market an expanded range of offerings," said Ronen Givon, Chief Executive Officer, Givon.

"We see cross-synergies in customer relationships, products and technology that can be leveraged to strengthen our presence in the growing Aerospace sector and become a partner of choice for global OEMs and Tier-1s," noted Sunil Rajagopalan, Business Head (Aerospace) of Wipro Infrastructure Engineering.

The acquisition is subject to customary closing conditions and regulatory approvals, which are expected to be completed in September 2016.

WIN has a global workforce of over 1,700 and has 13 state-of-the-art manufacturing facilities spread across India, Europe, USA and Brazil, making it one of the largest Independent Hydraulic Actuator Manufacturers in the World. Its Aerospace manufacturing facility for Actuators and Precision Engineered Components is located at Bangalore, India.

Givon founded in 1970 by Ruth and Haim Givon as a family-owned business, H.R Givon (Givon) has grown to be Israel's largest manufacturer of metallic aerostructure parts and assemblies.

http://www.business-standard.com/ar...ed-givon-in-all-cash-deal-116080101266_1.html
 
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Mahindra Aerostructures first Indian company to bag contract from Airbus helicopters as Tier I supplier

THE HANS INDIA | Jul 14,2016 , 12:48 PM IST


Airbus Helicopters


Airbus Helicopters


Mahindra Aerostructures is the first Indian company to receive a contract from Airbus Helicopters as Tier I supplier.Airbus Helicopters has entered into an agreement with Mahindra Aerostructures for the production of airframe parts for the AS565 MBe Panther. This agreement which is a part of a long term ‘Make in India’ partnership was revealed in a joint press release on Tuesday.

Mahindra Aerostructures will produce these parts at the company facility in Bengaluru from where they will be shipped directly to Airbus productions line in Marignance, France.The value of this contract remains undisclosed even as Airbus Helicopters and Mahindra state the parts will form a critical part of Panther military helicopters sold across the globe.

AS565 MBe Panther is competing for the naval utility helicopter program and if selected by the Indian Government, India will be the global hub for the production of parts in a joint venture between Airbus Helicopters and Mahindra Defence Systems Limited.

Panther helicopters are all weather, multi-role, and light rotocrafts, specially designed for operations from ship decks and off shore locations besides land sites. They are designed for troop transportation, logistic support and medical evacuation.

It has the capacity to transport 10 commandos while for medical evacuation it can accommodate upto 4 patients and a doctor. As on date, Airbus Helicopters has 21 Panther MBes on order which includes 11 for Indonesia and 10 for Mexico.

http://www.thehansindia.com/posts/i...-Airbus-helicopters-as-Tier-I-supplier/242072
 
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Boeing, Mahindra Defence Systems opens C-17 training centre opens in India

12th July 2016 - 9:30
by the Shephard News Team

Mahindra Defence Systems and Boeing have jointly opened a centre in Gurgaon, Haryana in India, to provide training services for the Indian Air Force (IAF) C-17 military transport aircraft, Boeing announced on 8 July.

The new centre is located at the Flight Simulation Technique Centre in Gurgaon. Boeing developed the centre with Mahindra Defence Systems as part of efforts to support the government's 'Make in India' initiative.

Once fully operational, the centre will be able to conduct local and multi-site training simulations for aircrew operators of the ten C-17 military transport aircraft delivered to India by Boeing in 2013-2014.

The centre has a complete training solution for loadmasters and pilots, including computer-based training, courseware and simulation for all tasks required for humanitarian and military airlift operations, including emergency procedures and aerial refuelling.

The facility has loadmaster station and weapons system trainers that can be individually used or networked for complete missions. The flight deck on the simulator supports night vision goggles.

http://www.aerotechnews.com/blog/20...en-c-17-training-center-for-indian-air-force/
 
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Ashok Leyland sets its sights high in defence

It wants to grow 10-fold in five years through strategic alliances

T E Narasimhan | Chennai April 7, 2016 Last Updated at 21:06 IST



The Stallion has been the most successful product from Ashok Leyland’s defence arm so far
Last month, Ashok Leyland Defence Systems, a division of Hinduja group's flagship, Ashok Leyland, roped in US-based defence contractor Lockheed Martin to develop combat vehicles for the Indian Army.

The technology sourcing agreement with Lockheed is the latest in a string of partnership deals from Ashok Leylandto step up its defence play and to reach a turnover of Rs 5,000 core over the next five years.


This, by any stretch of imagination, is an ambitious target, given that its current revenue is a little over Rs 600 core. However, it may not be entirely unachievable.

Since its inception in 1998, Ashok Leyland's defence arm has relied heavily on strategic alliances to win big contracts. Over the past decade, it has signed three deals with overseas players to boost its technological know-how. It is now looking to do the same with Lockheed.

Nitin Seth, president (light commercial vehicle & defence), Ashok Leyland, says the right technological support is critical to the success of a company trying to make a mark in defence manufacturing, given the huge initial costs involved in developing products.

"It is not that we cannot develop our own technology, but considering the time it takes and the money that is required (Rs 400-Rs 500 crore), it is better to source (platforms) which are in service," says Seth.

The latest deal, for instance, will allow Ashok Leyland to use Lockheed's platforms for its light-specialist vehicles (LSV) and light-armoured multipurpose (LAM) vehicles. In addition to giving it a foothold in the $1-billion armoured vehicle market in India, the tie-up will significantly boost its overall capabilities in providing mobility solutions for the army.

Defence mobility is one area Ashok Leyland is betting on heavily. Already, it is the largest supplier of medium- and-heavy vehicles to the army. Its warhorse, the Stallion, was used to carry troops to the battlefield during the Kargil war, and from 400 Stallions in 1998, the army today has over 70,000 Stallions, accounting for almost 80 per cent of its fleet of big vehicles.

Backed by Lockheed's technological support, Ashok Leyland is looking to bid for LSV and LAM vehicle programmes of the Indian Army. It believes the tie up will significantly shrink the time taken to develop the vehicle and also help it keep the costs low, as it won't have to start manufacturing from scratch.


A shot in the arm
If Ashok Leyland becomes a supplier of LSV and LAM vehicles, its revenue could straightaway get a boost of Rs 5,000 crore. Then, there is also the scope for recurring demand as the army doesn't change its models frequently. This means the business from these programmes could be four or five times bigger than what is believed today.

Ashok Leyland, however, is not banking on armoured vehicles alone to reach the Rs 5,000 crore target. It has also joined hands with Sweden's defence and security company Saab and is looking for an alliance with Bharat Forge to produce vehicles to carry guns and missiles. The idea, the company says, is to have a wide range of products under one roof to meet all requirements of the army.

So far this strategy has proved fruitful. Out of the 14 tenders to supply medium and heavy trucks floated over the past year, Ashok Leyland claims to be in the final stages (L1 stage) of at least 12 of these. However, it has not disclosed the deal value yet.

This means Ashok Leyland is proving to be cost-competitive in India. One way, it has achieved this is by localising production as much as possible. "In order to have a viable business in defence, one should have at least over 80 per cent localisation but for certain products we have achieved almost 100 per cent localisation," says Seth.

Its strengths are clearly reflected in its order book. It recently bagged a Rs 800-crore tender to supply 450 artillery tractors and Stallions and 825 ambulances to the army.

Yet, its future is not without challenges. Other major players, including Tata Advanced Systems, Mahindra Defence Systems and Bharat Forge, are also keen on the LSV and LAM programmes, increasing competition in the space.

This is the first time the Indian army has called for bids for these vehicles (1,300 LSV and 700 LAMs). Equipped with sophisticated technology, including thermal imaging and mounted machine guns, these vehicles are highly effective in combing and patrolling operations, be it within the city or along the border.

While the vehicle is popular worldwide, especially with the armies in the US, the UK and Iraq, it cannot be imported because the specifications for speed, power and weight differ based on local conditions.

Seth says while Ashok Leyland has a head-start with the platform provided by Lockheed, it will still have to make heavy investments in redesigning the product to acclimatise it to Indian conditions. Currently, the prototype of the vehicle, along with that of two other companies, is in the testing stage with the army. If Ashok Leyland wins the commercial bid, it will be in a position to start manufacturing by 2019.

However, because it takes a long time for defence contracts to materialise and the outcome even after the gestation period is unpredictable, the company is also looking at exports to safeguard its interests.

http://www.business-standard.com/ar...ts-sights-high-in-defence-116040701001_1.html
 
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