Outsource more from India: Airbus parent to suppliers

New Delhi: European aerospace major European Aeronautic Defence and Space Company (EADS), parent company of India’s largest aircraft supplier Airbus, has directed its European tier-1 outsourcing partners to direct a larger portion of their outsourcing orders from India.
This indirect outsourcing will make EADS’ total business outsourced to India grow 10 times by 2020, from the current ¤100 million.
In comparison, total outsourcing to countries outside Europe will only increase by more than three times in that period, albeit from a far larger base of ¤8 billion.
Industry experts said this indirect outsourcing would be a clear way to rationalise costs. “Manufacturing parts in India would be 30 to 40 per cent more cost-effective, although it does depend on where the manufacturing takes place in India owing to differential tax structure,” said Kapil Kaul, CEO (Indian sub-continent), Centre for Asia Pacific Aviation (CAPA).
EADS recently invited 11 of its European partners, including aerostructure suppliers like Aernnova, Latecoere, Spirit, Stork Fokker Premium Aerotec (also an EADS subsidiary), and systems and equipment suppliers like Cobham, Eaton, Rockwell Collins, Safran and Thales to Aero India 2009, the defence aero-show held in Bangalore to participate in talks with Indian suppliers.
02/03/09 Anirban Chowdhury/Business Standard

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Categories: Foreign Mar 2009