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| Edited By: Neha Rishi |Source: DNA |Updated: Mar 29, 2018, 05:32 AM IST
GE Aviation, one of the world’s leading manufacturer of jet engines for both commercial and military aircrafts, is looking at sourcing $100 million of aero parts from India.
Nalin Jain, country director (South Asia), GE Aviation, said, “We have a sourcing-team based in India, which is looking at sourcing aerospace parts from here. We are looking at about $100 million worth of sourcing over the next 3-5 years.”
“Sourcing from India will… also reduce costs which may be in the range of 20-30%,” he added. “We expect India to develop into a major aerospace parts manufacturing hub in years to come.”
Other aviation players looking at sourcing from India include Boeing, Airbus, Rolls-Royce and Pratt & Whitney.
Jain added, “One of our Tier 1 supplier has moved work to India from the US… They have set up a subsidiary in Chennai — Kearns Aeroproducts. So that’s one model we could pursue in times to come, wherein we have some of our suppliers set up joint ventures with Indian companies to manufacture parts in India. This should improve our sourcing volumes from India.”
But while sourcing activities will be beefed up, the downward trend in the aviation industry might force GE Aviation to re-adjust production. “Our global production is in the range of 2,500-3,000 engines. This year we do expect a decline due to lesser deliveries — but it tracks with the airframe production rates,” added Jain.
GE Aviation commands over 50% of the aircraft engines market in India, having supplied to Air India, GoAir, SpiceJet, Paramount Airways and Jet Airways.
“Our backlog looks good as far as India is concerned. We have a backlog of at least 400-450 engines. There is a lull right now in new orders so our current focus is on fulfilling earlier commitments,” Jain said.
GE Aviation believes the defence space offers a big opportunity and Jain said that they there is a possibility of getting new engine orders from the military.
The military engines might be even manufactured in India and GE Aviation is working on some projects, including an engine for the 126 fighters the Indian Air Force is expected to purchase soon.
