Boeing, a maker of commercial aircraft and defence, space and security equipment, is expanding its India operations and, according to official sources, a ‘big announcement’ is expected during US President Barack Obama’s forthcoming visit. Pratyush Kumar, president, Boeing India, in an interaction with Arun S, explains the company’s plans and concerns. Excerpts:
How is Boeing taking part in ‘Make in India’?
Boeing is committed to ‘Make in India’. We have been making in India with our partners for two decades, but are accelerating it with PM Narendra Modi’s focus on manufacturing. We have opened a new line to manufacture sections of Chinook Heavy Lift helicopters at our partner, Dynamatic Technologies, following the launch of ‘Make in India’, though the Heavy Lift Helicopter contract is yet to be finalised with the ministry of defence.
How do you plan to expand your India operations?
Boeing has so far taken a non-equity route to partner the Indian industry, but we are also evaluating equity partnership opportunities. Boeing has been working with aerospace suppliers in India for over two decades in manufacturing, IT and engineering services, and has invested considerably in supplier development, training, tooling, and quality systems at these companies. Today, we have over 18 suppliers with world-class capabilities in aerospace manufacturing providing parts and assemblies covering commodities such as aerostructures, wire harness, composites, forgings, avionics mission systems, and ground support equipment. Since 2008, Boeing’s engagement with suppliers has increased substantially for commercial and defence aircraft such as the 777, 787, P-8, F/A-18, F-15, and CH-47 Chinook. Boeing, in partnership with TAL (a Tata enterprise), has set up a state-of-the-art factory in Nagpur where composite floor beams for Boeing 787-9, one of the most advanced aircraft in the world, are being produced. This is the first factory of its kind in India and is indicative of the complex manufacturing capabilities that Indian companies are developing.
Can you explain your India strategy?
Our business strategy has a twin focus here. First, to provide a winning platform to the country’s commercial aviation and military customers with state-of-the-art, reliable and fuel-efficient products, supported by world-class services. second, to create an ecosystem for aerospace manufacturing in India through partnerships with local companies, government enterprises and academia. Going forward, you will see Boeing accelerate its presence in India and partner Indian companies,realising Make in India for the aerospace and aviation sector.
Do you have concerns around India’s defence offset policy?
There is rising optimism since much has been done to generate positive sentiment. India’s defence offset policy was designed to catalyse the development of an indigenous defence industrial base. Boeing understands the motivation for the policy and has submitted plans to meet its requirements. However, we believe the aspects of the current offset regime actually precludes India from fully realising the benefits of the obligations Boeing and other companies have incurred. Examples: a period of performance for discharging the obligations, which results in Indian companies working on low-value, low-complexity activities; the inability of original equipment manufacturers (OEMs) to modify the content of proposed offset work packages or Indian offset partners based on performance; the inability of OEM Tier 1 suppliers to be fully included in discharging offset obligations; and the current Services in Abeyance order that prevents OEMs from accessing Indian IT and engineering capabilities for offsets, thereby hindering capacity building for highly engineered product manufacturing at their Indian offset partners.
What are key areas that need to be addressed with regards to aerospace manufacturing in the country?
Aerospace manufacturing is complex and requires a huge ecosystem of high technology research and development, advanced manufacturing processes, highly skilled people, services capability and much more. In India, first we need to have sophisticated engineering and software capability to support the manufacturing process. Then there is the need for frontline factory workers, who are able to do complex aerospace manufacturing.
Today, there is a huge supply-demand gap for trained factory-line workers and engineers. So skilling a workforce is an imperative. We are working with National Skill Development Corporation (NSDC) to address this gap and to develop vocationally trained frontline workers in advanced manufacturing. The partnership between Boeing, NSDC and Nettur Technical Training Foundation has already produced its first batch, which has been fully absorbed by one of our very own suppliers.
How is Boeing planning to cater to demand for defence equipment space, security equipment as well as airplanes in India?
In India, Boeing sees opportunities for attack helicopters, heavy-lift helicopters, unmanned systems and services and support. As the modernization of India’s armed forces progresses with acquisition of new platforms and upgradation of existing ones, a major focus is on ensuring operational readiness through a product’s lifecycle by means of affordable support and services. With deliveries of 10 C-17 Globemaster III airlifters to the air force and six P-8I long range maritime surveillance and anti-submarine aircraft, Boeing is ramping up services and support in India.
