Wednesday, September 12, 2018

Aerospace industry growth in India over two times of GDP, says MD of Aequs Aerospace

With more demand and competition, India can soon transform into an aerospace manufacturing hub. “The key challenges facing the industry are strengthening the supply chain, workforce productivity, and timely adoption of new technologies,” Rajeev Kaul, chief financial officer and managing director at Aequs Aerospace, tells Huma Siddiqui in an interview. Edited excerpts:

What is the outlook for the aerospace manufacturing industry, globally and in India?

Globally, the demand for new aircraft has increased phenomenally. Commercial aircraft sector is expected to see a growth rate of 4.8% in FY2018-19. The annual passenger traffic has increased from 2.5 billion in 2008 to 4 billion in 2017. This increased demand in the market, coupled with pricing pressure, has led to industry OEMs (original equipment manufacturers) expanding their supply chain in countries such as India owing to labour arbitrage and easy access to skilled engineers and workers. India’s aerospace manufacturing industry is still in its nascent stage as it is traditionally dominated by defence-related manufacturing which includes HAL and its supply chain. Tier II and tier III suppliers have started making components for the global commercial aerospace market in India only recently.
12/09/18 Financial Express