Brickwork Sourcing at Aero India 2013
Aero India 2013 started with a bang on Feb 6, 2013. The show was touted as the biggest in Asia with 607 companies which included world aerospace majors in attendance. The event showcased India’s defence and aerospace technology emphasizing on technology advancements through collaborations with other countries. The event saw participation of over 700 companies and 78 overseas delegations. The five day event featured prominent international manufacturers such as Rafale, Dassault and United Aircraft Corp, along with Indian majors Hindustan Aeronautical Limited and Bharath Electronics Limited among others. Technology advancement was showcased and the growth of native aerospace sector was highlighted. Aeronautical component manufacturers also attended in good numbers.
Aero India has already carved a niche for itself globally as a premier aerospace exhibition, with successful editions organized since 1996. The participation of 78 overseas delegations this year only emphasized the fact that there is increased awareness for defence collaborations. The defence sector is grooming itself to be well equipped using sourced technology and knowledge transfers, this event provided a platform for that, helping to bolster business opportunities in international aviation.
A rapidly growing economy, defence preparedness challenges and opening up of defence production to private sector, has been some of the trends observed in the defence industry in India. With native component manufacturers which include small and medium (SME) manufacturing and large key private sector organizations playing an active role, the importance of sourcing from India for global defence majors multiplies.
With the implementation of the defence offset policy in India as part of the defence procurement procedure in 2005, the country has seen increased credibility with respect to defence procurement. The refined policy in 2006 extends the existing policy to all defence procurement proposals where indicative cost is above Rs 300 Crores and the schemes are categorized as involving outright purchase from foreign/Indian vendors.
The defence offset policy brings in benefits for Indian suppliers to promote their defence product offerings. Global defence majors can look to tap into this offering and expect quality defence component sourcing. Small component manufacturers come into the picture on account of this. With increased demand the small component manufacturers can further expand and look at partnerships with foreign defence majors who are getting set to tap into this market.
Globally, OEMs make the top tier and component manufacturers make the bottom tier of defense and aerospace manufacturing, but the manufacturing segment in India has followed a slightly different path with less room for the development of private sector capabilities. This needs to be addressed, but the fact that the bottom tier is comprised of component manufacturers is encouraging. More private sector participation definitely seems to be on the agenda of the Indian defence ministry.
Defence sourcing from India is only going to see more growth going forward, with emphasis on defence needs multiplying; there is a host of opportunities for both small time defence component manufacturers as well as defence majors to tap into the industry. This would mean that sourcing consultants would play a major role in bridging the gap between assembly and supplies. Brickwork Sourcing works with global companies and has capabilities of providing end-to-end sourcing as well as vendor and supply chain management solutions.