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Sikorsky Says It Will Bid for Military-Helicopter Orders In India

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Sikorsky Says It Will Bid for Military-Helicopter Orders In India


To Compete for up to $15 Billion of Orders in 10-15 Years, Executives Say

Sikorsky Aircraft, a unit of United Technologies, expects to bid for between $14 billion and $15 billion in military-helicopter contracts in India over the next 10 to 15 years, executives said.

By Santanu Choudhury

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A U.S. Army Sikorsky Black Hawk helicopter flies over Kabul on Aug. 13, 2012. Sikorsky executives say the production facility its operates with the Tata Group in southern India to make cabins for a civilian-transportation helicopter could easily be retooled to also produce military helicopters such as the Black Hawk.

Agence France-Presse/Getty Images

NEW DELHI—Sikorsky Aircraft Corp., a unit of United Technologies Corp., expects to bid for between $14 billion and $15 billion in military-helicopter contracts in India over the next 10 to 15 years, executives said.

The production facility Sikorsky operates with India’s Tata Group in southern India to make cabins for a civilian-transportation helicopter could easily be retooled to also produce military helicopters such as the Black Hawk, Sikorsky executives told The Wall Street Journal.

“As far as defense is concerned, (India) is a huge market and we are here to address the market,” A.J.S. Walia, who heads Sikorsky’s operations in India and South Asia, said in an interview. “The fact that we are already established here as a local company with the Tatas as a partner should speak for itself that we have very serious intention of being a serious player in the aviation requirements of this country.”

Sikorsky and its rivals, including Boeing Co., Eurocopter and Bell Helicopter, are all competing to sell military hardware in India as they look for new sources of demand to help offset declining orders in countries in the West which are slashing their defense budgets.

India is already the world’s largest military-equipment importer with an average annual military budget of more than $30 billion. Military consultancy IHS Jane’s expects India to become the world’s fourth-largest defense spender by 2020, behind the U.S., China and Russia. It predicts India’s military spending will reach $65.4 billion that year.

Sikorsky and Tata Advanced Systems Ltd., a Tata Group company, have two factories on the outskirts of the southern city of Hyderabad. The plants manufacture the parts and the cabins of the S-92 helicopters used for civilian transportation. The Hyderabad facility—which is the sole production line for the S-92 cabin globally—can make up to four cabins per month.


The Indian-made cabins are exported to the U.S. where the complete helicopter is assembled and then delivered to customers world-wide.


In recent years, India has placed billions of dollars of orders with U.S. companies as relations between the two democracies have improved and India has tried to diversify its reliance on longtime military-equipment supplier Russia.

Mr. Walia, a retired vice marshal of the Indian Air Force, said the Hyderabad facility could be used to produce cabins for its H-92 military helicopter which is similar to the S-92. He said Sikorsky is also eager to offer the Black Hawk and other helicopters to the Indian armed forces.

“We are waiting for the demand for Black Hawk,” Mr. Walia said. “If the Black Hawk is the best fit, then we will offer that machine,” and make it in India if that is required by Indian regulations, he said.

He said Sikorsky would participate in an upcoming tender of India’s state-owned helicopter operator Pawan Hans Helicopters Ltd. to buy 22 helicopters which will be used for transportation for offshore oil and gas exploration and for commercial transport.


Sikorsky is already participating in an Indian Navy tender for 16 helicopters. It has offered its S-70B Sea Hawk helicopter, a naval version of the Black Hawk.
It is competing with the NH90 helicopter produced by Europe’s NH Industries, which is jointly owned by Eurocopter and AgustaWestland.

Mr. Walia said the company has sold six transportation helicopters in India, including one to the state government of Maharashtra, over the past few years but the rupee’s decline against the dollar has hurt demand as it increased the cost of imported helicopters.

http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-369904/
 
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