MUMBAI, July 10 (Reuters) – Godrej Aerospace is in talks to build aircraft parts for suppliers to Airbus (AIR.PA) and Boeing (BA.N) as the airlines place record orders for jets, a top executive has said of the Indian company.
Air India and IndiGo (INGL.NS) together have ordered nearly 1,000 new aircraft, said Maneck Behramkamdin, deputy vice president and general manager at Godrej Aerospace, meaning 2,000 to 2,500 engines would eventually need servicing.
“With so many planes coming to India, Airbus and Boeing need to expand their supply chain. Airbus and Boeing’s second-tier suppliers are now looking at India…we are in talks with them,” Behramkamdin told Reuters.
There are many options in supplying aircraft structures and there is also a great need for titanium, he said, adding that there will also be needs for the maintenance, repair and overhaul of aircraft parts.
Godrej Aerospace is already exporting some key components to engine manufacturers General Electric (GE) and Rolls-Royce (RR.L), Behramkamdin said after a media tour of its Mumbai plant.
The company expects its civil aviation business to generate 1 billion rupees ($12 million) in revenue in the current fiscal year, accounting for 35% of Godrej’s total revenue, he said in an interview, adding that he anticipates , that this turnover will increase to 50% in the next year.
India is pushing for domestic manufacturing and sourcing of aerospace and defense components, and companies like Airbus and Boeing have recently committed to more local manufacturing and investment.
Godrej Aerospace will also bid to manufacture GE-414 engine modules and become part of the supply chain for the workhorses that will power the next generation of Indian fighter jets.
Under an agreement announced during Prime Minister Narendra Modi’s state visit to the US last month, the engines will be manufactured jointly by GE (GE.N) and Hindustan Aeronautics Limited (HAL).
Godrej Aerospace said separately in a statement that it plans to invest 2.5 billion rupees ($30 million) to build a new facility in Khalapur in Maharashtra for advanced manufacturing, assembly and integration facilities.
Reporting by Dhwani Pandya in Mumbai; Letters from Aditi Shah and Sethuraman NR; Edited by Himani Sarkar, Raju Gopalakrishnan and Alexander Smith
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