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By Nivedita Bhattacharjee
BENGALURU (Reuters) - Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are expanding parts sourcing from India, driving growth in the country's emerging aerospace sector and pushing local firms to elevate their games, industry insiders say.
Bengaluru-based Hical Technologies and JJG Aero are among those riding the wave. Hical, a supplier to Raytheon Technology and Boeing among others, aims to double revenue to 5 billion rupees ($57.57 million) from its aerospace division in three years, said Yashas Jaiveer Shashikiran, joint managing director.
JJG Aero, also in Bengaluru’s industrial hub, took 12 years to hit $2 million in revenue but soared to $20 million in the last six, said CEO Anuj Jhunjhunwala.
The growth is part of an Asia-Pacific aerospace surge, with 2024 revenue projected to be 54% above 2019 levels, while North America and Europe remain 3% and 4% lower, according to Accenture Research.
“Earlier, we were chasing customers. Now, they are equally interested in evaluating Indian machine shops,” Jhunjhunwala said, adding that contracts were being signed more quickly and onboarding processes being done much faster than ever before.
The companies produce parts for landing gear, wings, fuselage, electrical switches and motion control systems essential for flight safety and performance.
Leading Western plane and engine manufacturers, whose output has been constrained by strikes, production caps, and parts and labour shortages since the pandemic, say they want to source more from India to meet rising demand for air travel.
"India is the best solution to supply chain challenges,” Huw Morgan, senior vice president for aerospace procurement at Rolls-Royce, said last week at an industry event.
"Our engine volumes are growing at around 20% and the traditional supply chains are just not able to support it," Morgan said. "India is ... the best cost market."
The British company plans to double sourcing from India within five years.
The country is among the biggest aircraft buyers in the world, yet accounts for only 1% of the global supply chain market, according to the recently formed Aerospace India Association.
"Post-Covid, the global aerospace industry has reached an inflection point. While this shift began in 2020, aerospace is a slow-moving industry — it takes time for changes to materialise," said Aravind Melligeri of supplier Aequs.
MORE PLANES, MORE PARTS
India, the world's third-largest domestic aviation market by seats, is also among the fastest-growing, driving demand for maintenance services and parts.