Indian Aerospace Industry

Indian Aerospace Industry | Aviation Companies in India | Download PDF

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Indian Aerospace Industry | Aviation Companies in India | Download PDF: Dear students, we are sharing short notes on Indian Aerospace Industry PDF which is very useful for upcoming Airports Authority of India (Airport Operations) exam 2018. The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world. India is expected to become the world’s largest domestic civil aviation market in the next 10 to 15 years, as per Mr Jayant Sinha, Union Minister of State for Civil Aviation, Government of India. In India there are many airline manufacturing companies which are listed below. You can download PDF from the links given below. Indian Aerospace Industry

According to International Air Transport Association IATA, India will displace the UK for the third place in 2025.

The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as low-cost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines, advanced information technology (IT) interventions and growing emphasis on regional connectivity.

Market Size

India’s passenger* traffic grew at 16.52 per cent year on year to reach 308.75 million. It grew at a CAGR of 12.72 per cent during FY06-FY18.

Domestic passenger traffic grew YoY by 18.28 per cent to reach 243 million in FY18 and is expected to become 293 million in FY20E. International passenger grew YoY by 10.43 per cent to reach 65 million in FY18 and traffic is expected to become 76 million in FY20E.

In FY18, domestic freight traffic stood at 1,213.06 million tonnes, while international freight traffic was at 2,143.97 million tonnes.

India’s domestic and international aircraft movements grew 14.40 per cent YoY and 9.40 per cent YoY to 1,886.63 thousand and 437.93 thousand during 2017-18, respectively.

As of March 2018, there are nearly 550 commercial aircraft in operation in India.

Investment

According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in air transport (including air freight) between April 2000 and December 2017 stood at US$ 1,608.51 million. The government has 100 per cent FDI under automatic route in scheduled air transport service, regional air transport service and domestic scheduled passenger airline. However, FDI over 49 per cent would require government approval.

India’s aviation industry is expected to witness Rs 1 lakh crore (US$ 15.52 billion) worth of investments in the next five years.

The Indian government is planning to invest US$ 1.83 billion for development of airport infrastructure along with aviation navigation services by 2026.

Key investments and developments in India’s aviation industry include:

  • AAI is going to invest Rs 15,000 crore (US$ 2.32 billion) in 2018-19 for expanding existing terminals and constructing 15 new ones.
  • In June 2018, India has signed an open sky agreement with Australia allowing airlines on either side to offer unlimited seats to six Indian metro cities and various Australian cities.
  • The AAI plans to develop Guwahati as an inter-regional hub and Agartala, Imphal and Dibrugarh as intra-regional hubs.
  • Indian aircraft Manufacture, Repair and Overhaul (MRO) service providers are exempted completely from customs and countervailing duties

Government Initiatives

Some major initiatives undertaken by the government are:

  • Allocation to Civil Aviation Ministry has been tripled to Rs 6,602.86 crore (US$ 1,019.9 million) under Union Budget 2018-19.
  • In February 2018, the Prime Minister of India launched the construction of Navi Mumbai airport which is expected to be built at a cost of US$ 2.58 billion. The first phase of the airport will be completed by end of 2019.
  • The Government of Andhra Pradesh is to develop Greenfield airports in six cities-Nizamabad, Nellore, Kurnool, Ramagundam, Tadepalligudem and Kothagudem under the PPP model.
  • AAI is going to invest Rs 15,000 crore (US$ 2.32 billion) in 2018-19 for expanding existing terminals and constructing 15 new ones.
  • Regional Connectivity Scheme (RCS) has been launched under the policy.

At present there are about 20 major aviation enterprises in India. Of these, the top 10 are: (1) Hindustan Aeronautics Ltd (HAL); (2) Brahmos Aerospace Pvt. Ltd; (3) Bharat Electronics Ltd.; (4) Electronic Corporation of India Ltd.; (5) Boeing International Corporation India Pvt. Ltd.; (6) Raytheon; (7) Lokheed Martin; (8) Honeywell Aerospace; (9) BAE Systems; and (10) GE Aviation.Best books for AAI, DRDO, DFCCIL, CGPDTM

Of these, the biggest one HAL, based in Bangalore Karnataka is a State-owned aerospace and defence company and was formed way back on October 10, 1964.

HAL: HAL is an Indian state-owned aerospace and defence company based in Bangalore, Karnataka.
• HAL built the first military aircraft in South Asia.
• It is currently involved in the design, fabrication and assembly of aircraft, jet engines, helicopters and their spare parts.
• Several facilities located across India, operated by HAL include Nasik, Korwa, Kanpur, Koraput, Lucknow, Bangalore and Hyderabad.
• Hindustan Aeronautics Limited (HAL) was ranked 40th in flight International’s list of the top 100 aerospace companies last year.




NAL: National Aerospace Laboratories (NAL), is India’s second largest aerospace firm after Hindustan Aeronautics (HAL).
• CSIR-NAL mandate is to develop aerospace technologies with strong science content, design and build small and medium-sized civil aircraft, and support all national aerospace programmes.
• NM5 – Five Seater – General Aviation Aircraft, country’s first public-private partnership (PPP) for development of civil transport aircraft in collaboration with M/s Mahindra Aerospace Pvt Ltd (MAPL).

ISRO: Established in 1969, Head Quarters in Bangalore with annual budget of USD 1.1 Billion
• Extra-terrestrial exploration – First mission to the Moon: Chandrayaan-1
• Mars Orbiter Mission (Mangalayaan), India is the first country to enter Mars orbit in first attempt. It was completed at a record cost of $74 million.
• ISRO’S Mars mission is the cheapest so far. Just Rs. 450 crore. “That is Rs. 12 per km. Equivalent to Auto Fare.
• Antrix Corporation Limited, the commercial arm of Indian Space Research Organization (ISRO), has finalized contracts to launch 16 satellites of six countries in the coming years
• PSLV launched 40 foreign satellites

Entry of Private Sector

In the wake of liberalisation in the early 1990s, private participation in the sector made modest beginnings and has steadily grown since then. Some of the prominent private companies that have entered the sector are:




  • Tata Advance Systems Ltd.

Of all the contenders, Tata Advance Systems Ltd (TASL) appears to be the one nearest to acquiring the capability to manufacturefull aircraft, radars and unmanned Aerial Vehicles (UAVs). It has tied up with Airbus for the manufacture of C-295 transport aircraft, a replacement for Avro HS-748. Its partnership with Airbus for C-295 would include supply of 16 aircraft in fly-away condition and 40 to be built in India. This would be a major breakthrough for private participation.

  • Mahindra Aerospace

Mahindra Group entered the aerospace industry in 2008 through its new entity Mahindra Aerospace. In 2010it acquired Australian entity’s Gipps Aero and Aerostaff.  It is the first Indian company to go into full aircraft production, albeit a small one and that too outside India.

In 2010, this company began developing a 25,000 sq. metre facility outside Bangalore to produce airframe parts and assemblies within the country. The facility was formally inaugurated in 2013 and is now delivering aerospace sheet metal parts and assemblies for global companies. The company recently signed a “Statement of Intent” with Airbus Helicopters for forming a joint venture to produce military helicopters in India.

  • Bharat Forge

This is another Indian company that Airbus is looking at to have some of its aircraft parts forged in India as the next logical step to expanding its supplier base and outsourcing activity in a fast-growing market. Bharat Forge is already having a similar arrangement with Boeing.

  • Reliance Defence Ltd.

This is a wholly-owned subsidiary of Anil Ambani’s Reliance Group. It has set up the Dhirubhai Ambani Aerospace park spread over 400 acres of land at Nagpur for the manufacture of aerospace components. It has entered into a joint venture with Rafael Advance Defence Systems Ltd, Israel. The initial outlay for the joint venture, excluding the technology cost, will be Rs.1,300 crore. The company will be located at Pithampur near Indore, Madhya Pradesh, and it will make air-to-air missiles, air defence systems and large air ships.

As per the current guidelines of the Centre, 51 per cent holding in the company would be from Reliance Defence and the rest would be held by Rafael. The JV is expected to provide a big thrust for the indigenous development of high precision weapons system in India.

The Make in India initiative launched by Prime Minister Narendra Modi in September 2014, has paved the way for air frame manufacturers to increasingly use the services of aerospace suppliers in the country. However, the momentum is still a little slow. However, there are signs that things will change for the better with the Department of Industrial Policy and Promotion (DIPP) proposing to raise the FDI cap to 74 per cent. This has encouraged quite a few Indian companies to enter into joint ventures with foreign companies. 

Special Economic Zones (SEZs)

The country’s first SEZ for aerospace sector was set up by Quest Global at Hattargi, 37 km. from Belgavi in Karnataka. It is now rebranded as Aequs and is spread over 300 acres of land with an investment of Rs.150 crore marking a big leap for the sector. It provides an ecosystem for original equipment manufacturers, their suppliers and ancillaries with a thrust on precision manufacturing.

It has covered much ground in giving practical shape to domestic manufacturing in this sector. It has 150 Computerised Numerical Control (CNC) machines with an investment of US$ 150 million and is expected to generate revenue to the tune of US $ 75 million per annum when operated at its peak capacity. Airbus Group is a key customer of Aequs.




  • Hyderabad SEZ

The country’s youngest State Telangana has recently set up a Special Economic Zone (SEZ) in Adilabad, on the outskirts of Hyderabad for aerospace products and has already secured its maiden investment from Tata Group for manufacture of fuselages and wings for Dornier 228 aircraft produced by Swiss-based Ruag AG. The Tata Advance Systems Ltd (TASL) will set up a manufacturing facility here.    

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