Opportunities for entrepreneurs in Aerospace and Defense Industry

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Aerospace And Defense
By: Sonali Srivastava

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Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space.
Typically, aerospace industries combine aeronautics and astronautics to
research, design, manufacture, operate, or maintain vehicles
moving through air and through space. Aerospace is a very diverse field,
with a multitude of commercial, industrial and military applications.
In most industrial countries, the aerospace industry is a cooperation of
public and private industries.
Ex: several countries have a civilian space program funded by
the government through tax collection, such as NASA in the United
States, ESA in Europe, the Canadian Space Agency in Canada, Indian
Space Research Organization in India, JAXA in Japan, RKA in Russia,
China National Space Administration in China, SUPARCO in
Pakistan, Iranian Space Agency in Iran, and Korea Aerospace Research
Institute (KARI) in South Korea.

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Defense Industry
The defense industry, also called the military
industry,
comprises government and commercial industry inv
olved in research, development, production, and
service of military materiel, equipment and facilities.
It includes:
Defense contractors: business organizations or
individuals that provide products or services to a
military department of a government.
The Arms industry, which produces guns,
ammunition, missiles, military aircraft, and their
associated consumables and systems

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Aerospace Industry In India
Indian industry today is on the threshold of
entering into a new era where it will assume
greater responsibility in making the nation
self-reliant in Defense Production. The
resurgence of India’s manufacturing sector
has been remarkable. Not only are the
profits soaring, the sector is also making its
presence felt abroad as many Indian firms
are becoming transnational companies.

5. The Indian manufacturing sector is internationally
competitive with
› International quality standards
› Efficiency and manufacturing facilities.
India is fast developing into a manufacturing hub for
world corporations wanting to leverage the sector’s
proven skills in
 Product design
Reconfiguration and customization with creativity
Assured quality and value addition.
India, also keen to strengthen its own aerospace
industry and has asked major weapon exporting
countries to transfer technology to India.
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6. List of Some Indian Companies
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1. HAL (Hindustan Aeronautics Limited)
HAL, a Defense PSU, is a major player
in the global aviation arena. It has built
up comprehensive skills in design,
manufacture and overhaul of fighters,
trainers, helicopters, transport aircraft,
engines, avionics and system
equipment.

7. 2. Indian Space Research Organization (ISRO)
Government of India established the
Department of Space in 1972 to promote
development and application of space
science and technology in the country for the
socio-economic benefits. Indian Space
Research organization (ISRO) is the primary
agency under the Department of Space for
executing space programmes.
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8. 3. Defense Research Development Organization (DRDO)
DRDO is a network of 52 Defense
Laboratories in India which are deeply
engaged in developing critical defense
technologies covering various disciplines like
aeronautics, armaments, electronics, combat
vehicles, engineering system, instrumentation,
missiles, advanced computing and simulation,
special materials, naval systems, life sciences,
information systems and agriculture.
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9. 4. Bharat Electronics Limited (BEL)
BEL was established in 1954 to meet the specialized
electronic needs of the country’s defense services, is a multi-product,
multi-technology, multi-unit company. It serves the
needs of domestic and foreign customers with the
products/services manufactured in its nine state-of-the-art ISO
9001/2 and ISO 14000 certified manufacturing plants in India.
BEL manufactures a wide repertoire of products in the field of
Radars, Naval systems, Defense Communication,
Telecommunication and Broadcasting, Electronic Warfare,
Opto Electronics, Tank Electronics and Electronic
Components.
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5. Bharat Dynamics Limited (BDL)
BDL is fully owned by the Government
of India, was established in 1970. BDL
manufactures guided weapons &
related test equipment, Launchers,
under water weapon systems and
decoys for the Indian Defense
Services.

11. 6. Bharat Earth Movers Limited (BEML Limited)
BEML Limited, Government of India Company, is one of
the largest manufacturers and suppliers of earthmoving,
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construction and mining equipment in Asia.
BEML manufactures a wide range of sophisticated hi-tech
equipment like bulldozers, rear dump truck, front-end
loaders, hydraulic excavators, rope shovels, motor
graders, walking draglines, pipe layers, tyre handling
equipment, aircraft towing tractor, heavy duty
transportation trailers, heavy duty trucks and its prime
movers, rail coaches including day coaches, sleeper
coaches, postal vans, track-laying equipment, overhead
Inspection cars, diesel engines and genets.

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7. Ordnance Factory Board (OFB)
The Indian Ordnance Factories possess the
unique distinction of more than 200 years of
experience in Defense production.
Ordnance Factory Board offers
comprehensive range in the areas of land,
naval and air defense systems. These include
small, medium and large caliber weapons &
ammunition, mortars, explosives,
pyrotechnics, armored & soft skin vehicles,
optical & night vision devices, parachutes and
troop comfort items.

13. 8. Mishra Dhatu Nigam Limited (MIDHANI)
MIDHANI – an ISO 9002 company - caters to domestic
and international customers with modern metallurgical
facilities and high degree of technical competence for
manufacturing its diverse product mix of super alloys,
titanium alloys, special purpose steels, electrical
resistance & soft magnetic alloys, molybdenum and other
alloys meeting the stringent requirements of the strategic
sectors like defense, aerospace, power and general
engineering etc.
MIDHANI employs its highly integrated and flexible
manufacturing facilities to produce a wide variety of
special metals and alloys in various mill forms such as
ingots, forged bars, hot rolled steels and bar, cold rolled
sheets, strips and foils, wires, castings and tubes.
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9. BrahMos Aerospace
BRAHMOS-supersonic cruise
missile is designed for use in
multiple platforms- ships, silos,
mobile launchers, aircrafts and
submarines against land and sea
targets. BRAHMOS has attained
100% success rates in all flight
trials.

15. Aerospace & aviation activity centre's in India
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16. All segments Manufacturing, Engineering
Services and Aviation are seeing rapid growth.
India ranks 38th
among the top 100
aerospace and
Defense companies
of the world.
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The current US$
4b of Indian
manufacturing
activity is going to
grow more than 8
times by 2020

17. Opportunities in manufacturing
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1. Indian aerospace manufacturing activity
comprises: Indigenous civil, defense and space
programmes as well as participation in
international programmes growing to annual
turnovers of $15B by 2015 and $35B by 2020.
2. Overseas aerospace organizations wanting to
meet $2B offset commitment per annum through
Indian aerospace companies ,are not finding
enough Indian companies put together to be
able to deliver more than $200m because of lack
of readiness in terms of capability and capacity.

18. Opportunities in Engineering Services
1. NASSCOM predicts for India, a 25 % market share in the
explosive growth in Global Engineering Services market
of $225B by 2020;a significant portion would go to
aerospace; add to this Software and embedded system
activities and it leads to an estimated annual turnover of
$6B by 2015 and $12B by 2020
2. “Medium and Low Complexity Engineering Services” is a
strong capability area of Indian companies. Some of the
ways of gaining access into this market are: offer
specialty skills and tools, strategic tie ups, risk sharing
participation in Indian programmes, setting up captives in
India to support Indian and global programmes etc.
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Opportunities in aviation
1. To cater to growing air transportation needs, over $100B is being
invested by India in next ten years for aircraft acquisition and
aviation infrastructure development. The market is projected to
grow in all segments of aviation: General Aviation, Airports and
Airport Services, MRO, Leasing and Insurance, Training
2. Lack of infrastructure is a major constraint in the air transportation
growth that the market is craving for. UK companies may be able to
gain access to the infrastructure market through PPP (Public
Private Partnership) models. General Aviation, Engineering
Consulting and Leasing and Insurance are high potential areas to
pursue.
3. Maintenance market including spares is currently estimated to be
US$ 1350 million annually.
4. There is a huge gap in general aviation: presently there are only
300 aircraft against a potential to have 10,000 aircraft by 2020, if
there is a strong drive and campaign to actualize it ( as against
200,000 aircraft in US and 12,000 aircraft in Australia)

20. Why small and non-traditional suppliers enjoy competitive
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advantages in
markets or opportunities where the following conditions exist:
 A rapid rate of innovation combined with a
relatively low degree of R&D intensity and high
uncertainty about future market or technology
trajectories.
 Skill intensive production that exploits the local
network effects available within small firms.
 A heterogeneous industrial structure with
medium-speed learning curves that allow small
firms to find niches between the scale and scope
of larger, established suppliers.

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