Godrej Aerospace is in talks with suppliers to Airbus and Boeing to manufacture aircraft parts amidst the surge in plane orders. The Indian company aims to meet the growing demand and strengthen the aerospace supply chain, aligning with the country’s push for local manufacturing and indigenous sourcing.
Godrej Aerospace, in the midst of negotiations to produce aircraft parts for suppliers servicing Airbus and Boeing, is poised to capitalize on the anticipated upheaval in the aviation industry.
As airlines place unprecedented orders for planes, the stage is set for a transformative period. Air India and IndiGo alone have committed to purchasing nearly 1,000 new aircraft, thus creating a scenario where approximately 2,000-2,500 engines will inevitably require maintenance.
Notably, India has been advocating for local manufacturing and indigenous component sourcing in the aerospace and defense sectors. Several companies, including Airbus and Boeing, have recently pledged to bolster their “Make in India” efforts.
“Given the substantial influx of aircraft into India, Airbus and Boeing are compelled to reinforce their supply chains. Consequently, Tier two suppliers of these industry leaders are now exploring opportunities in India… We are currently engaging in discussions with them,” revealed Maneck Behramkamdin, Godrej Aerospace’s Associate Vice President and Business Head.
Behramkamdin emphasized that contracts pertaining to aircraft structures present numerous prospects. Additionally, significant titanium requirements are anticipated. Furthermore, the demand for aircraft parts maintenance, repair, and overhaul services will be substantial. Godrej Aerospace already exports critical components to engine manufacturers General Electric and Rolls-Royce, according to the company.
The company anticipates that its civil aviation business will generate revenues of Rs 100 crore in the ongoing fiscal year, constituting 35% of Godrej’s total revenues. Behramkamdin also expressed confidence that revenues would increase to 50% next year.
In addition, Godrej Aerospace intends to compete for the opportunity to manufacture modules for GE 414 engines, thereby becoming part of the supply chain for the upcoming generation of Indian fighter jets. A recent agreement reached during Prime Minister Modi’s visit to the United States stipulated that General Electric and Hindustan Aeronautics Limited (HAL) would jointly manufacture these engines.
Furthermore, Godrej Aerospace plans to invest Rs 250 crore in establishing a new facility in Khalapur, Maharashtra. This facility will house advanced manufacturing, assembly, and integration facilities.
