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CHENNAI TECHNOLOGY CENTRE

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CHENNAI TECHNOLOGY CENTRE

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CHENNAI TECHNOLOGY CENTRE

HYDERABAD(ANDHRA PRADESH)BANGALURU

( KARNATAKA)

FOCUS OF INDIAN AEROSPACE INDUSTRY

KORAPUT(ORRISA)

MUMBAI& NASHIK(MAHARASHTRA)

LUCKNOW & KANPUR(UTTARPRADESH)

INDIAN AEROSPACE INDUSTRY AT A GLANCEVISION 2020VISION 2020--

Projected investment in Indian Aerospace segment - $110 billion

$80 billion in procurement of new aircrafts$30 billion in airport related infrastructure

Boeing estimates close to 1,000 commercial jets required over next 20 years at a value of US $100 billion.

India will have more than 250 functional airports compared to 80 at present.

MRO sector will have an investment of $120 billion

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PASSENGERS (IN MILLIONS) CARRIED AT MAJOR AIRPORTS

CARGO HANDLED ( IN 1,000 TON ) AT INTERNATIONAL AIRPORTS

2020 PROJECTIONS

AVIATION POLICY

For green field airports, foreign direct investment (FDI) up to 100 percent is permitted through automatic approvals.

For existing airports, FDI up to 74 percent is permitted through

automatic approvals and up to 100 percent through special permission (from FIPB).

Private developers are allowed to set up captive airstrips and general airports 150 km away from an existing airport.

One hundred percent tax exemption for airport projects for a period of 10 years.

Forty-nine percent FDI is permissible in domestic airlines under the automatic route, but not by foreign airline companies. One hundred percent equity ownership by Non-Resident Indians (NRIs) is permitted.

Seventy-four percent FDI is permissible in cargo and non-scheduled airlines.

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REGULATORY,DUTIES & TAX ENVIRONMENTDefense offset policy –

30 percent of the deal value (Deal cost > $75

million) to be ploughed back in the form of sourcing equipment and services from India. MRO

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100% FDI permitted under automatic approval route.

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CHENNAI TECHNOLOGY CENTRE

INDIA AS MANUFACTURING DESTINATIONADVANTAGE

High Domestic aircraft demand

Offset Requirements

Cost advantages

Talent Pool

Leveraging IT competitiveness8

AMT-

CHENNAI TECHNOLOGY CENTRE

AVENUE SEGMENTS IN AEROSPACE INDUSTRY

1.

Aero structure elements + mechanical assembly systems

2. Avionics + testing equipment

3. Precision machined parts

4. Design & engineering services

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STRUCTURAL ELEMENTS + OTHER MECHANICAL ASSEMBLY SUPPLIERS

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VARMAN AVIATION

TRIVENIHITECH PVT LTD

ELASTOMERIC ENGINEERS

AVIONICS & CONTROLS + TESTING INSTRUMENTS SUPPLIERS

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genser aerospaceMAP SYSTEM (INDIA) PRIVATE LIMITED

PRECISION MACHINED PARTS-

SUBSUPPLIERS

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Kumaran Industries Pvt. Ltd.

MAINI PRECISION PRODUCTS

STEEL & INDUSTRIAL FORGING

Thread Gauge Products Pvt. Ltd.

Super Industrial Components

Turbocam India Pvt. Ltd.

Unique Instruments & Manufacturers

BASHI AEROSPACE PVT. LTD

Vishnu Forge Industries Ltd

TECHNO TOOLS

DESIGNING + ENGINEERING SERVICES PROVIDERS

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CHENNAI TECHNOLOGY CENTRE

Plexion technologies

Pelorus consulting

India invited bids for 22 attack and 15 heavy lift helicopters worth around $2 billion.

Tata Advance Systems Ltd.) ties up with Sikorsky (U.S.-based helicopter mfg. co.) to manufacture fuselage of S-92 helicopters in India. Deal has been struck for $350 million and plant is coming up in an SEZ at Hyderabad.First 19-seater S-92 aircraft would be delivered by end of 2010.

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OPPORTUNITIES IN HELICOPTER SEGMENT

• First manned mission to moon by 2020. Project is likely to attract an investment of $3 billion.

• ISRO is going to double the capacity for commercial launching of

various foreign satellites.

• Raytheon awarded $85 million contract for building the ground stations for the GPS aided Geosynchronous Augmented Navigation System.

• $1 billion has been allocated to ISRO to work upon GSLV Mark III

for launch of four ton communication satellites.

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OPPORTUNITIES IN SPACE PROGRAM

Trial for procurement of 126 multirole combat aircrafts is in process. This is decade’s largest defense deal valuing around US $12 billion. Eighteen aircrafts would be procured on fly-away basis and remaining would be built up by HAL under the license.

Airbus is planning to set up a final assembly line (FAW) at Karnataka/Tamil Nadu with an estimated investment of $600 million.

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OPPORTUNITIES IN DEFENSE AIRCRAFTS

Boeing forms JV with Air-India for MRO in Nagpur. The project is expected to be completed by end of 2011 and will have two hangers suitable for wide-bodied 777s & 787s. Total investment planned is $100 million.

HAL TIMCO to set up airframe MRO facility at HAL’s Bangalore Airport.

EADS ties up with National Aerospace Co. Ltd. to start MRO facility. Total investment planned is $40 million.

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OPPORTUNITIES IN MRO SECTOR

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HINDUSTAN AERONAUTICS LIMITED DIVISIONS

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CHENNAI TECHNOLOGY CENTRE

PROJECTS –

AEROSPACE SECTOR

1) SAAB and TAML sign agreement for components manufactureTata Advanced Material Ltd & Saab have signed a business agreement for

manufacture of structural composite components.

The agreement is for a period of four years for manufacture of composite components for one of Saab's commercial programs. TAML is engaged in Design, Manufacture & Supply of Composite components & subassemblies for

Aerospace, Defence & Industrial applications.

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AgustaWestland

And Tata Sign MoU

For AW119 Helicopter Assembly In India

AgustaWestland, a Finmeccanica

company, and Tata announced the signature of a Memorandum of Understanding (MoU) for the formation of an Indian joint venture company which will establish a final assembly line for the AW119

helicopter in India.3)

GMR-HIAL & MAS Aerospace Engineering seal agreement for MRO JV GMR Hyderabad International Airport Ltd. (GHIAL), and MAS Aerospace

Engineering (MAE), a wholly-owned subsidiary of Malaysia Airlines sealed an agreement to set up a 50:50 joint venture Airframe Maintenance, Repair and Overhaul (MRO) company in Hyderabad.

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HAL receives order for manufacturing doors from Airbus Industries(HAL) has received an order from aircraft manufacturer Airbus Industries for

the supply of 2,000 doors for its single aisle family of aircraft. Net worth of order is around US $150 million.

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PROJECTS –

AEROSPACE SECTOR Cont’d

5) Tata in JV with Israeli firm for defence aerospace unitTata has formed a joint venture with Israel Aerospace Industries (IAI) for

setting up defence aerospace manufacturing facilities in the AP SEZ. The JV-

Nova Integrated systems Ltd would design, manufacture and integrate advanced defence and aerospace systems with transfer of technology from IAI. The project would see an initial foreign direct investment of $50 million

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