Mahindra Aerospace scouts for tech partner

Mahindra Aerospace Pvt. Ltd, the aerospace unit of Mahindra and Mahindra Ltd (M&M), is scouting for a technology partner to make aircraft components at its proposed plant in Bangalore.
“Our plant then gets certified much faster,” said Hemant Luthra, president of Systech, M&M’s component manufacturing division, of which Mahindra Aerospace is a part. “This will include an equity as well as technical collaboration.”
Rajiv Chib, associate director of aerospace and aviation at consultant PricewaterhouseCoopers, said given the long-drawn qualification process and certifications involved in the manufacture of aircraft parts, the gestation period for an Indian firm without US or European collaboration could be as long as eight years. “With a technology partner, the lead time can be cut to two to three years.”
Mahindra Aerospace has outlined an investment of Rs.230 crore for the Bangalore factory, which will make components to be supplied to global aircraft manufacturers as well as Mahindra’s own aircraft manufacturing business.
M&M entered the aerospace business with the acquisition of Australia’s Gippsland Aeronautics Pty Ltd and Aerostaff Australia Pty Ltd in December 2009. Gippsland makes aircraft and Aerostaff high precision metal components for companies in businesses such as aviation and defence equipment.
The acquisitions made the Mahindra group, India’s first private sector conglomerate with the ability to build aircraft. Most Indian firms can only make components and subsystems.
Luthra said the Bangalore plant will make use of the government’s so-called offset clause, which requires foreign military aircraft and defence equipment manufactures to locally source components worth 30% of contracts valued at Rs.300 crore or above.
21/06/11 Shally Seth Mohile/Live Mint

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Categories: Indian Aviation- In General Jun 2011