Boeing has been a prominent player in the Indian aviation industry for several years. Can you provide an overview of Boeing's current business operations in India, including ongoing projects and partnerships?
Boeing's commitment to India's aerospace and defence sector spans 80 years, setting us apart as a reliable partner. We lead among foreign OEMs, with over $1 billion in annual manufacturing and services sourced from 300+ Indian supplier partners. Notably, 25 per cent of these partners are Micro, Small, and Medium Enterprises (MSMEs) integral to our global supply chain.
Boeing proudly supports the Aatmanirbhar Bharat initiatives as a central pillar of our long-term business strategy in India. The Boeing India Engineering and Technology center in India is leveraging a talented pool of 4,500+ engineers and innovators across Bengaluru and Chennai to drive growth and innovation in aerospace. Boeing is investing $200M in a new 43-acre state-of-the-art wholly-owned engineering and technology campus in Bengaluru. This will be Boeing’s largest facility of its kind outside the U.S. Boeing has had an engineering presence in the country since 2009, and BIETC was formally established in 2016.
Over 150 Boeing aircraft, including the 737, 757, 777 and 787 Dreamliner, offer exceptional flying experiences through Air India, Air India Express, Akasa Air, SpiceJet, Vistara, Blue Dart, and Quikjet. With our strong heritage, and a wide range of product portfolio, we are best placed to address the growing and dynamic needs of airlines customers in the region, who aspire to capitalize the market share in domestic, international sector for passenger and cargo. India is an important market for Boeing, and the company has made strategic investments in the country.
In 2023, Boeing has partnered with GMR Aero Technic to establish a Boeing Converted Freighter line in Hyderabad, while also setting up a Global Support Center in Gurgaon to provide customized operational efficiency and safety improvement projects for airline customers, regulatory bodies, and other stakeholders. Additionally, Boeing is investing in a new India Logistics Center to provide efficient and cost-effective service solutions to regional customers, ensuring higher fleet utilization and mission readiness rates. We're excited to continue our journey with India, shaping the future of aviation together.
Can you share insights into how Boeing views the evolving Indian aviation sector and its long-term business strategy for enhancing its presence in the Indian market?
India's commercial aviation market is expected to become the third-largest in the world by 2041, with a fleet size nearly quadrupling compared to 2019. The country is also projected to receive over 90 per cent of South Asia's airplane deliveries, requiring over 2,400 new aircraft, while its cargo market is set to expand significantly, with the fleet growing from 15 to 80 airplanes by 2042, driving a $135 billion demand for commercial services. Boeing's 2023 Pilot and Technician Outlook anticipates substantial demand in South Asia for 37,000 pilots and 38,000 maintenance technicians over the next two decades, primarily fuelled by India's burgeoning aviation sector. To support this need, Boeing has committed a $100 million investment in infrastructure and training programs to produce skilled pilots in India, aligning with the country's aviation growth over the next 20 years. Boeing is committed to supporting the growth of India's civil aviation industry by providing efficient commercial airplanes, world-class services, and innovative solutions aligned with the government's Aatmanirbhar Bharat vision. Through local partnerships and advanced technologies, Boeing strives to bring value and modernize the Indian aerospace industry amidst the unprecedented surge in civil aviation traffic.
Boeing has a substantial presence in both the commercial and defense aviation sectors. How do you balance these two aspects of your business in India, and what opportunities do you see in the defence segment?
Balancing our presence in both the commercial and defence aviation sectors is a critical aspect of Boeing's strategy in India. We recognize the diverse opportunities in India's growing aviation market. In the commercial sector, we've established strong partnerships with airlines, delivering a wide range of aircraft and services to enhance air travel experiences.
Simultaneously, in the defence sector, we collaborate with the Indian government and the Indian armed forces to provide advanced technology and solutions, reinforcing national security. This dual approach reflects our commitment to contributing to India's economic and defence needs, fostering long-term partnerships, and maintaining a balanced presence to support the country's growth and security.
Aerospace and defence aficionados know that Boeing’s relationship with India goes back to the 1940s when the Indian Air Force enlisted two Boeing aircraft: The T-6 Texan, and the C-47 Skytrain military transport. From then on through the years, Boeing has continuously invested in local capacity building and has collaborated with Indian organizations across manufacturing, infrastructure, engineering services, research and technology, training and skills development. Our contribution to the nation is not limited only to our products and services, it goes beyond to build capability and capacity for indigenous players to become an integral part of the global defence and aerospace industry.
India presently operates a diverse range of Boeing platforms, including 11 C-17s, 22 AH-64 Apaches (with six more on order), 15 CH-47 Chinooks, 12 P-8Is, 3 VVIP aircraft (737 airframe), and two Head of State aircraft (777 airframe), solidifying India as one of Boeing's primary defence markets. The Boeing – India relationship boasts several noteworthy milestones, including India being the first international customer for P-8 aircraft, the largest international operator of C-17s outside the U.S., and the pioneering integration of a U.S. weapon on an Indian fighter with the Harpoon. Boeing's commitment extends beyond equipment and services, and through the Boeing India Repair Development and Sustainment (BIRDS) program, we've collaborated with customers and local industry to establish Maintenance, Repair, and Overhaul (MRO) facilities in the region. This aligns with India's aspiration to emerge as an MRO hub for the region.
The Indian government has been emphasising the development of aerospace and defense manufacturing under the 'Make in India' initiative. What is Boeing's perspective on this, and how is the company contributing to local manufacturing?
Boeing leads among foreign OEMs, annually sourcing over $1 billion from 300+ supplier partners in India. Notably, over 25 per cent of these are Micro, Small, and Medium Enterprises (MSMEs) integral to our global supply chain, exporting critical components worldwide. Our strong network of Indian suppliers, particularly in the aerospace sector, has made us a leader in exports and underscores our commitment to fostering growth and leadership in Indian aerospace and defense through partnerships, including with start-ups.
Our joint venture with Tata Advanced Systems Ltd. (TASL), Tata Boeing Aerospace Limited (TBAL) in Hyderabad, is a state-of-the-art facility that showcases our commitment to Make in India and Aatmanirbhar Bharat. TBAL manufactures aero-structures for Boeing's AH-64 Apache helicopter, including fuselages, secondary structures, and vertical spar boxes for customers worldwide, including the U.S. Army. More than 230 fuselages have been delivered by TBAL, with over 90 per cent of the parts used manufactured in India, sourced from over 100 MSME suppliers. Earlier in 2023, TBAL completed delivery of the first fuselage for the Indian Army's six AH-64 Apache attack helicopters and shipped the first vertical fin structure for the Boeing 737 aircraft. Some additional examples of our collaboration with Indian suppliers to integrate them into our global supply chain network include:
Dynamatic Technologies has been manufacturing the ramp and complex aft pylon for Chinook heavy-lift helicopters, and P8 cabinets. They have recently won the contract to supply for the F-15EX Eagle II program. This is a first where aerostructures for the latest and most advanced F-15EX Eagle II will be made in India.
Rossell Techsys manufactures wire harness and electrical panel for the AH-64 Apache, and the harness for several BDS platforms including V-22 Osprey, CH-47 Chinook, F-15 and F/A-18 Super Hornet. SASMOS HET Technologies manufactures electrical panel assemblies for the F/A-18 Super Hornet and F-15 Strike Eagle. Hindustan Aeronautics Ltd (HAL) manufactures F/A-18 gun bay doors. Bharat Electronics Limited (BEL) manufactures IFF (Identify Friend/Foe) and speech secrecy system for the P-8I. Jaivel Aerospace has won a contract with Boeing to manufacture and supply aircraft protection system products for the Boeing T7A-Red Hawk aircraft.
In 2022, Rossell Techsys entered into an agreement with Boeing to manufacture and supply wire harnesses for the T-7A Red Hawk platform. Rossell will be manufacturing Electrical Wiring and Interconnect System (EWIS) parts and the deliveries will continue through FY 2032, covering a total of 84 unique parts. All parts will be manufactured at Rossell’s Center of Excellence (CoE) set-up exclusively for Boeing.
Jaivel Aerospace will manufacture and supply aircraft protection system products for the Boeing T-7A Red Hawk aircraft. Working with the Boeing teams in India and the U.S., Jaivel Aerospace has developed entirely new capabilities for this product range, for the first time in India. These products will be manufactured at the company’s manufacturing facility at Sanand Industrial Estate in Ahmedabad.
Tata Advanced Systems Limited (TASL) in 2022, and Dynamatic Technologies in 2023 won the “Supplier of the year” award from Boeing, among more than 11,000 suppliers worldwide.
Given the growing emphasis on sustainability and environmental considerations in the aviation industry, what are the initiatives undertaken by Boeing to support this in India?
Boeing has set an ambitious target to address the long-term sustainability of commercial aviation by committing that its commercial airplanes are capable and certified to fly on 100 per cent sustainable aviation fuels by 2030. We see great potential for SAF production in India and by India. As a member of the World Economic Forum’s Clean Skies for Tomorrow (CST) initiative, Boeing contributed to the first report “Deploying Sustainable Aviation Fuels at Scale in India” in 2021 as a starting point for public-private taskforce to design an implementable policy framework for decarbonizing aviation in India. As a key contributor to this report, Boeing helped determine that ~10 per cent of India’s SAF needs by 2030 can be met through domestic production. As a result, we entered into a partnership with SpiceJet and the Council of Scientific and Industrial Research – Indian Institute of Petroleum (CSIR-IIP) to help test and certify a domestically produced SAF.
How does the BUILD initiative by Boeing contribute to the growth of Indian startups, given their significant head start after the Start-up 20 discussions?
The Boeing University Innovation Leadership and Development program (BUILD) was launched in 2019 to nurture early-stage entrepreneurs in India, recognizing the vital role startups play in a country with a growing middle class and expanding digital infrastructure. With initiatives like Aerospace Xelerated and AEI HorizonX, we are well-prepared to support the exponential growth of startups in India and beyond. BUILD selects and supports early-stage startups, guiding them with mentorship and resources to transform innovative concepts into market-ready solutions. Each year, BUILD acts as a platform that brings together people, ideas, technologies, and processes to redefine solutions across key industries in India, solidifying its role in the country's startup ecosystem.
How does the BUILD program actively contribute to this growth?
Boeing collaborates with seven incubators, including Society for Innovation and Entrepreneurship – IIT Mumbai, Foundation for Innovation and Technology Transfer – IIT Delhi, Innovation and Entrepreneurship Center – IIT Gandhinagar, IIT Madras Incubation Cell, Society for Innovation and Development – IISC Bengaluru, T-Hub Hyderabad, and Technology Business Incubator – KIIT Bhubaneshwar, to host BUILD annually in India. These incubator partners work closely with Boeing and subject matter experts to evaluate applications and choose finalists for the BUILD boot camp. The selected teams have the opportunity to refine their ideas in a structured environment, ultimately leading to the development of market-ready products. Boeing is currently accepting applications for this year's BUILD program, welcoming ideas in the fields of aerospace and defense, technology, social impact, and sustainability.