Airbus and Tata will invest in developing capabilities, including acquiring raw materials, manufacturing detailed parts, or subcomponents, and setting up sub-assembly and assembly facilities. In the initial phase of the program, components such as metallic and composite manufacturing technologies will be sourced.
“We work with Tata and we train Tata. Then, it’s up to them to decide whether they make or buy the components. Whenever they are selecting a supplier or MSME (micro, small, and medium enterprises), they need to satisfy some requirements which have been set up by Airbus. So, we are doing the assessment of the suppliers. We are qualifying them and whenever there is a gap, supporting them. In the first stage, most resourcing will be metallic and composite manufacturing technologies.”
As part of its efforts to strengthen India’s supply chain, the firm will also prioritize electric harnesses, he said without providing specifics. In order to replace India’s aging military transport fleet, the project will meet the demand for military transport aircraft.
As of 2021, the Indian Air Force has signed a contract with Airbus to purchase 56 C295 military transport aircraft, for a total amount of Rs 21,395 crore. From the San Pablo Sur assembly line in Seville, Spain, around 16 of these aircraft will be acquired in ready-to-fly condition. Earlier this year, Airbus presented the first aircraft to Air Chief Marshal Vivek Ram Chaudhuri in front of the crowd. Airbus and Tata Advanced Systems will invest in the establishment of the defence supply chain to manufacture around 40 C295s locally.
In addition to additional transport aircraft, Airbus also plans to utilize this supply chain to develop other defence platforms and offerings, since the Indian military requires approximately 100 aircraft, according to Tamarit. From their final assembly line in Vadodara, which is expected to be operational by November 2024, Airbus and Tata expect to deliver the first India-made C295 in 2026.
Several foreign defence firms, including Brazil’s aviation major Embraer, have also been exploring the possibility of establishing manufacturing facilities in India. Airbus announced that component production for the aircraft had begun at the primary assembly facility in Hyderabad. Earlier, Mint reported that Embraer is in negotiations with Tatas and Hindustan Aeronautics Ltd to manufacture defence transport aircraft in India.
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Following the Centre’s push to encourage global defence companies to “Make in India”, there’s a concerted effort to establish a robust domestic defence supply chain. New Delhi’s initiatives include releasing indigenization lists, boosting domestic procurement in Defence Acquisition Procedure 2020, and promoting defence industrial corridors. These measures aim to facilitate the entry of foreign firms into the Indian market, support defence startups, and boost research within the country. “Airbus and Tata partnering is an example of two giants coming together and building synergies to come up with something remarkable and much needed for economic growth. Such partnerships are bringing in capital from the global market and immense global experience and in turn getting access to skilled manpower, market, local trust of capability and delivery and a brand which has been synonymous of delivering business for the greater good,” said Brajesh Singh, president, Arthur D. Little India.
A spokesperson for Tata Advanced Systems Limited declined to comment on the matter.
