‘It Was An Exciting Journey’

S P Shukla, President (Aerospace, Defence and Steel), Mahindra Group, and chief architect of the group’s aerospace business, in conversation with C.H. Unnikrishnan

How is Mahindra a fully-integrated aerospace player?
Today, we are the only Indian OEM producing and selling utility aircraft globally. Mahindra Airvan is in service in over 30 countries. It is a utility aircraft that flies in various roles like ferrying passengers, air ambulance, cargo carrier, surveillance and patrol, etc. Also, we have successfully adopted the ‘Make in India’ philosophy, and manufacture most components and aero structures for the aircraft at our plant in Bangalore.

Similarly, we have an air borne radar/components/avionics manufacturing plant near NCR from where we export to western nations. Overall, we have built over the years all round capabilities in the aerospace sector for parts, aero structures, electronics, simulators, MRO, etc. Moving forward, we hope to have an opportunity to manufacture aerospace platforms for the defence services in our country.

How was your journey considering the critical challenges the aerospace business faces such as high technological expertise and zero-defect targets?
It was an exciting journey. We have already created an integrated facility to produce airframe components, assemblies and aero structures. We also have a plant for avionics and air-borne radars. We have necessary certifications reflecting that we possess the technological expertise required in aerospace business such as AS9100C, NADCAP (NDT, Heat Treatment and Chemical Processing), and OHSAS 18001.

Our recent tie-up with Segnere, a French aerospace technology leader, will further enhance our technical expertise and expand our existing capabilities to produce hard-metal parts including titanium and aerospace steel. Once again, this is an example of our ability to understand the continuous need to upgrade our skills to suit customer needs. I believe that aerospace culture of technological excellence and zero defects will also benefit, in subtle ways, our other group companies.

How do you balance between high capital costs and low production volumes, the unique characteristics of the sector?
The aerospace business has a long gestation period, and it is capital intensive, but at the same time, it is quite rewarding. Brand loyalties and customer stickiness makes for a stable market share and steady business. We know it will take time and are ready to commit and invest.

We are happy to emphasise that our production volumes have steadily picked up for which the credit goes to our high-quality human resource that has developed sufficient expertise to deliver world class aerospace components and products. Today, we are sustained by export business, where our volumes have significantly gone up.

How did you overcome shortage of skilled people in India?
We invest in human resources and skill development. We have tie ups with local technical institutes to get skilled manpower. We even engage with teaching institutions for curriculum suited to our sector. For complex skills, we have brought expats who are subject matter experts to train our people. We have built a talent pool and also have the capability to absorb new people and upskill them in line with our business needs.

How tough is the regulatory environment?
The state governments are putting up their aerospace and defence policy guidelines in consultation with the industry bodies. At the Centre, the ministries are proactively involved in policy formulation and regulations are being overhauled in line with current practices. Overall, both the central and state governments are today cognizant of the needs of the aerospace industry and are trying to improve the business outlook in this sector.