EADS brings its Tier 1 Procurement Partners to India

EADS, a provider of aerospace, defence and related services, release says that it reiterated its commitment to India by inviting its Tier 1 procurement partners for a week long visit to India during the week preceding Aero India 2009. The group represents a large cross-section of the world aerospace industry with an aggregate annual turnover, in excess of 130 bn US$. Companies present in India were aerostructure suppliers like Aernnova, Latecoere, Spirit, Stork Fokker and Aerotec (also a subsidiary of EADS) as well as Systems and Equipments suppliers like Cobham, Eaton, Rockwell Collins, Safran and Thales.

The main objective of this initiative is to encourage leading Aerospace and Defence players from European countries and established players in the sourcing space to invest and source from India. The visit will help them to understand and define the country’s Aerospace and Defence sourcing potential. This will also reinforce the view that India is one of the key countries for EADS and its Procurement Partners in meeting the Vision 2020 goals over the coming years.

The global attitude towards Indian Aerospace and Defence Sourcing has changed radically over the past five years. Aerospace and Defence OEMs are shifting from vertically integrated manufacturing (from detail parts to final assembly lines) to a strong focus on design and systems integration. As a consequence companies like EADS will be keen to develop relationships with larger suppliers and industrial partners who can blend engineering and manufacturing. The emergence of India as a major market both in civilian aircraft and defence coupled with an explicit offset policy will contribute to build a thriving Aerospace and Defence Industry in the country.

Philippe Advani, Head of the EADS Global Sourcing Network, said: “In a period of great uncertainty, we are happy to confirm that India is, as ever, a top sourcing priority for EADS. By inviting our leading business units and western suppliers to have a concerted approach to India, we expect to contribute to building the critical mass expected by the Indian Industry.”

In order to provide a quantum leap to its sourcing activities from India, EADS had opened an India Sourcing Office in India in September 2007. This dedicated organisation has the responsibility of identifying key sourcing opportunities for EADS Business Units in India and developing their relationship with Indian Aerospace and Defence Industry contributing to the industry and supporting further development of the sector in India. An extended task has also been to facilitate ties between Western suppliers of EADS and their Indian counterparts. Several EADS divisions, directly or through their Tier 1 suppliers are engaging with other Indian companies for the manufacturing of detail parts and sub-assemblies.

According to Pedro Fuente, Executive Vice President Strategy and Business Development, Aernnova, ‘It has been a very useful trip so far. The information received the number of selected companies we have visited and the personal contacts are providing a very complete picture of the opportunities here in India, especially as Aerrnova intends to set-up in the short term an engineering centre to continue developing future industrial initiatives’.

Nick Wright, Division Supply Chain Manager, Eaton, added: ‘Eaton sees the value of a common and structured approach to technology, capability and capacity management with EADS and its Tier 1s in India to harness the obvious potential of the country’.

Lee Griffiths, Head of the Cobham India Liaison Office mentioned: “Cobham sees India as a very interesting market. These visits have been useful in order to meet new potential partners and to catch-up with partners we are already in contact with.”

India is strategically important market for EADS. In reorganisation with this fact, several EADS divisions, directly or through their Tier 1 suppliers are engaged with other Indian companies for the manufacturing of detail parts and sub-assemblies.

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