**Bengaluru**: Collins Aerospace, Pratt & Whitney, and Rolls-Royce boost parts sourcing from India, driving local firms like Hical Technologies and JJG Aero to expand. With projections for a growing market share, India aims to enhance its role in the global aerospace supply chain amid recovery trends.
Collins Aerospace, Pratt & Whitney, and Rolls-Royce have intensified their parts sourcing from India, leading to significant growth in the country’s burgeoning aerospace sector and prompting local firms to scale their operations. This development is being closely observed by industry insiders who anticipate a marked enhancement of India’s role in the global aerospace supply chain.
Among the primary beneficiaries of this increased interest is Hical Technologies, based in Bengaluru. The company, which supplies parts to giants like Raytheon Technologies and Boeing, has announced ambitious plans to double its aerospace revenue to ₹5 billion (approximately $57.57 million) over the next three years. Yashas Jaiveer Shashikiran, Joint Managing Director of Hical, highlighted the firm’s strategic growth trajectory.
Another Bengaluru-based firm, JJG Aero, has experienced exponential growth, reportedly increasing its revenue from $2 million to $20 million within a six-year span. CEO Anuj Jhunjhunwala attributed this leap to a shift in the industry dynamic, stating, “Earlier, we were chasing customers. Now, they are equally eager to evaluate Indian machine shops.” He noted that the speed of contract signings and onboarding processes has notably accelerated.
The Asia-Pacific aerospace sector is in the midst of a significant recovery, with projections indicating that revenue for 2024 will be 54% higher than in 2019. This stands in stark contrast to North America and Europe, which remain 3% and 4% below pre-pandemic financial levels, respectively. According to Accenture Research, the increasing challenges faced by Western aircraft and engine manufacturers — including strikes, production limits, and supply chain hurdles — have compelled them to rely more on Indian suppliers to meet the rising demand for air travel.
Rolls-Royce has announced plans to double its sourcing from India within the next five years, coinciding with a 20% growth in the company’s engine production volumes. Despite India’s status as one of the largest buyers of aircraft globally, it currently accounts for only 1% of the worldwide aerospace supply chain market, as reported by the Aerospace India Association (AIA). Nevertheless, experts believe that the post-pandemic environment presents a unique inflection point for India’s aerospace sector.
“Aerospace is a slow-moving industry—it takes time for changes to materialize,” remarked Aravind Melligeri, Chairman of aerospace supplier Aequs, highlighting the measured pace at which the sector operates. The domestic aviation market in India, now the third-largest by number of seats, is undergoing immediate expansion driven by significant aircraft orders from major airlines, including IndiGo and Air India, as noted by Air India CEO Campbell Wilson.
Indian companies have historically supplied basic components for the $180 billion global aerospace industry but are increasingly transitioning to more advanced offerings, such as design, engineering, and system integration solutions. Notably, Airbus has awarded its second contract for aircraft doors to Indian suppliers within a single year. Michel Narchi, Head of International Operations at Airbus, indicated that “India is currently contributing more than €1 billion to the overall Airbus supply chain, and we expect to double that. Every Airbus commercial aircraft today contains some part or component made in India.”
To further bolster this growing landscape, India’s Civil Aviation Ministry recently convened a meeting with industry leaders to explore strategies for enhancing component manufacturing. AIA Director General Srinivasan Dwarakanath underscored the importance of locally sourcing raw materials such as aluminium, steel, and titanium, which may eventually facilitate the certification of Indian-designed aerospace components.
Looking to the future, the AIA has projected that India’s aerospace industry could capture up to 10% of the global supply chain market within the next decade, anticipating the overall market to reach $250 billion annually by 2033. With substantial investments pouring in from international aerospace giants, India is poised to strengthen its position as a key player in the global aviation supply chain.
Source: Noah Wire Services
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