Svipja's Training & Development Practice
Our Training and Development Practice helps high-tech professionals in Defence and Aerospace Industry. www.svipja.com/ refers.
We also empanel Offset Consultants with Industry knowledge in A & D. You could fill Your 'Resume' on http://www.svipja.com/careers.php , or 'Join as a Consultant' on www.indiandefenceindustry.com/
Steps in Our Offset Process
Step 1: Acquaint Yourself first on Offset business. Please visit www.IndianDefenceIndustry.com , its connected Blogs and www.svipja.com in addition to other subject matter elsewhere. Offset Partnership and projects go thru rigorous 'Due Diligence' / 'Gate Reviews' by Vendors / Obligors.
Step 2: Register online on www.IndianDefenceIndustry.com using Internet Explorer to be part of the database of the Defence Industry. We are developing a consortium of MSMEs globally with
Step 3: Obtain Industrial License, if required. We take Advisory on Products / Services to target, Capacity Creation, JV and Capital Structure incl FDI & Technology Agreements, etc.
Step 4: Become Industrial Sector Partner (ISP) of Svipja/India. We will guide the ISP firms go through qualified vendor registration process for Supply Chains of aerospace & defence firms.
Some of these steps could be attempted concurrently.
1. Yearly Membership Fee for Registering on the Site and using e-Marketplace Engine for Buying/Selling and accessing Info System, is as indicated in Tariffs on the Site.This is variable.
2. Separate Fee for Offset Consulting / Industrial Co-operation would apply. Contact firstname.lastname@example.org further details.
3. Addl Fee will apply in case of market research, study and other services.
1. Svipja provides guidance to the ISP on project suitability and document/plan preparation for the Gate Review Process, and its Presentation as required.
2. Svipja does not take responsibility for offset fund allotment to ISPs. This is decided by A & D Major Company based on the capability of the ISP to meet the needs of the A & D Major.
Thursday, October 27, 2011
Thursday, October 13, 2011
The offset proposals from Dassault Aviation (Rafale) and the Eurofighter consortium (Typhoon) were presented before the DAC by director general acquisition Vivek Rae. Besides the Defence Minister, the two-hour meeting was attended by the three Service chiefs, the Defence Secretary, the Secretary, Defence Production, the DG (Acquisition) and concerned joint secretaries in the Ministry.
Foreign vendor bagging MMRCA Deal will have to invest back 50 per cent of the worth of the deal in Indian Defence Industry. This means investment of more than Rs 21000 Crore in India, in military, homeland security and civil aviation.
Monday, October 3, 2011
In addition, the following should considered:
1. Banking of offsets beyond the present limit to 10 years and above in case of infrastructure,special and greenfield projects rendering value to the Indian Defence Industry.
2. FDI 26%, and extendable to 49% with approval. Anything beyond this has to be discouraged to retain our 'freedom'; commerce is not end all of everything.
3. Defence & Aerospace high-tech start-ups should get their rightful share of Offsets. Creation of long-term value addition should be seen in these companies.
These are some of the points that merit attention, especially in the backdrop that we may not get the desired technology thru the offset route.
Sunday, September 11, 2011
Market Forces play in offsets. Obligors' Power, Buyers' Power, Threat of New Entrants / Competitors, Rivalry amongst Obligors, Alliances,etc, play its role. 'What You Need/Want', and 'What You Get' may have very little co-relation as a result.
We need to weigh it up all. Everything should not be seen with a 'black eye' sensing only kickbacks and corruption.
Friday, September 2, 2011
We must read Ajai Shukla’s Article keeping in mind that ‘no one will give you the current technologies; no one would like to create a competitor; Yes, still you can reach state-of-the-art technologies by leapfrog’. India will have to do this. Wisdom dictates that nothing would come on platter.
Click: MoD Flouts Offset rules, Favours Foreign Vendors
Friday, August 5, 2011
In a deposition before the Parliamentary Standing Committee, the MOD said that the projection, amounting to INR 1.5 lakh crore, was made in view of the $100 billion that India is expected to spend on defence procurements in the next 10 years. The deposition was part of a report on budgetary demands for grants for 2011-12, submitted by the committee to the Lok Sabha.
Offsets is a clause in the defence ministry’s procurement policy under which any equipment import worth more than Rs.300 crore will involve ploughing back of 30 percent of the contract amount back in Indian defence, homeland security and aviation industry. The policy is in existence since 2005, and has been refined over the years now.
‘As far as offsets are concerned, it is true that our procurements in the next five to 10 years would be more that $100 billion and 30 percent of that is $30 billion, which is INR 1.5lakh crore,’ a defence ministry official told the committee.
The official also went on to explain that the offsets clause involved either in a direct purchase by foreign arms companies from Indian industry, or technology transfers, or joint ventures with domestic firms in the defence, homeland security and aviation sectors.
The official, in its report, gave the example of the recent Indo-US deal for supply of 10 Boeing C-17s to Indian Air Force (IAF), under which India’s premier military research agency Defence Research Development Organisation (DRDO) will get high altitude engine test facility and a wind tunnel facility, both firsts in the country.
The Indo-Asian News Service (IANS)
Wednesday, August 3, 2011
Mahindra Aerospace started its expansion in 2009 by acquiring Australian companies Gippsland Aeronautics and Aerostaff Australia. Last year, the company signed an agreement to acquire parts-making machinery from Boeing's facility in Melbourne, Australia. Mahindra has a three-year plan of spending 4.5 billion INR ($102.2 million) in its aerospace business, of which about 1 billion rupees was spent in the two acquisitions above. The company plans to spend 2.8 billion rupees in a factory near Bangalore city and the rest will be spent in setting up a distribution network in the U.S. and China,
Mahindra Aerospace has developed a five-seater aircraft which will be tested in September. The company plans to develop a 10-seater and an 18-seater plane in the future, he added.
Thursday, July 28, 2011
The partnership would focus on manufacturing of sub - assemblies, engineering and customisation of civil helicopters, and the joint development of specific market segments. The scope and structure of the partnership would be decided accordingly.
Mahindra Satyam already provides IT and Engineering Services to the Aerospace Sector, particularly to plane manufacturer Airbus.
Saturday, July 16, 2011
Tata's are providing the floorbeams for the airline, on which the seats are laid. HCL has provided with advance software and some designing work was done by TCS.
Boeing and TAL Manufacturing Solutions entered into a manufacturing contact in 2008 for light weight floor beams made out of titanium and composite materials by using state-of-the-art technology.
Currently the company also buys parts for its other aircraft from Hindustan Aeronautics Ltd. (HAL) and service from Infosys.
Full Report: Indian Companies Supply for Boeing Dreamliner Project
"We had a meeting this week with the IAF to learn about the reasons for our aircraft being non-compliant in the deal," Lockheed Martin's Vice president Orville Prins told reporters here Thursday.
He said such a meeting would help the company prepare itself in a better manner for future competitions.
The request for the debriefing was made by the US Government, which had offered the aircraft to the Indian establishment through the Foreign Military Sales route.
In April, India had shortlisted Dassault and Eurofighter for 126 Medium-Multirole Combat Aircraft (M-MRCA) deal and excluded the two American companies including Boeing along with Russian MiG Corporation and Swedish Saab Gripen.
Asked if he was satisfied with the explanation given by the IAF, Prins said, "We are satisfied that we had the meeting and we could ask questions."
Commenting on the two shortlisted aircraft, he said, "I think Eurofighter and Rafale were evaluated as per the provisions of the DPP-06 which I understand says that in order to be shortlisted, the equipment should be fully compliant without any waivers."
The IAF had evaluated the six competitors on 660 parameters; Prins said adding that if waivers were to be granted to the aircraft, "I don't know where to draw the line."
Asked if the short listing of the two aircraft was a political decision, he said, "I think it was a political plus decision", which was a usual practice world over.
Wednesday, June 29, 2011
The SASC has also ordered “a detailed assessment of the desirability and feasibility of the future sale of F-35 Joint Strike Fighters to India, and a potential US partnership with India to co-develop one or more military weapon systems, including but not limited to the anticipated program to replace the US Air Force T-38 trainer jet”.
“It is in the national interest of the United States… to support India’s rise and build a strategic and military culture of cooperation and interoperability between our two countries, in particular with regard to the Indo-Pacific Region.”--- opined certain Senators.
Senior US officials privately contrast the flowering of the broad US-India strategic relationship with deepening scepticism about the defence relationship.
Read the full Report: US-India Strategic Defence Co-operation
Thursday, June 9, 2011
Flash Forge is a manufacturer of customised special material forgings used for severe service conditions in industries such as defence, aerospace, power, oil and gas, shipbuilding, petrochemicals and process plants.
The indigenous elements to be installed onboard the Scorpene submarines include systems and sub-systems such as engines, pumps, valves, accommodation elements and safety equipment, as also the combat and ship control systems that are part of the Mazagon Procured Materials element of the contract.
MDL is the main contractor It is to sub-contract work to the local players. Together, DCNS & MDL, are qualifying the suitable local companies to partner in the project.
Read Report: DCNS and Flash Forge India Private Limited to Partner for Scorpene Submarines
Tuesday, June 7, 2011
Defence public enterprises which get the offset benefits should outsource at least part of their orders to SMEs.
It is suggested that a permanent regulatory body of specialists should handle all offsets as a single window, preferably it to be a corporate body. It should be empowered to take decisions and guide local suppliers and MNC vendors within Govt. Guidelines.
Click to read an interrelated Article: Defence Offsets and SMEs
Friday, April 29, 2011
Rafale and Eurofighter remain in the fray, and possibly are being asked to extend their commercial bid by 31 Mar 2012.
US Ambassador to India, Timothy J Roemer, has also tendered his resignation.
Tuesday, April 19, 2011
It is a secondary propulsion system (Patents pending) for The Boeing Company, Airbus Industries, Bombardier, and Embraer companies as OEM supplier. It is being developed in the US. The real customers are the Airlines around the World.
Its Objective is to reduce fuel burn on ground by 80% and protect the environment and reduce the noise while reducing recurring operational costs.
There are over 17,600 aircrafts in service which could benefit from the system and represent the retrofit market of over $14 b.The global market forecast anticipates a demand for over 16,600 new single-aisle aircrafts in the next 20 years creating OEM market of over $15 b.
The System does NOT require any electrical, hydraulic, or pneumatic power to taxi the aircraft. It does NOT use aircraft Auxiliary Power Unit (APU) power to taxi. The following companies are developing competing systems / technologies:
1. Delos Aerospace.
2. Chorus Motors, subsidiary of Borealis Exploration, Ltd. of UK – “WheelTug”.
3. The Boeing Company.
All patented systems under development (not yet certified) by the above companies use APU power and / or electrical energy stored to run the motors mounted on the landing gear, whereas “PlanePower” secondary propulsion system is a self-contained.
This technology is available for transfer to a company which is capable of manufacturing the System. Terms can be discussed. Pse contact email@example.com
Friday, March 18, 2011
The German firm would provide technology on which a certain amount of customisation would be done and manufactured by ALDS in its existing facility. The details on developing the vehicles and manufacturing are to be finalised,
KMW, a 170-year-old company, has experience in the market for highly protected armoured wheeled and tracked vehicles. It supplies systems like MBT Leopard 2, the artillery system PzH 2000 and the highly protected Dingo 2 to over 30 countries worldwide, in addition to related military wares.
Ashok Leyland, in February, 2010, had signed a principle of co-operation with the Paramount Group, South Africa, for the development and manufacture of mine protected vehicles in India. A vehicle under this tie up is currently in the developmental process.
Article: Ashok Leyland in Defence and Aerospace
Saturday, March 12, 2011
'Dhanush' was flight tested from naval vessel INS SUVARNA in the Bay of Bengal, surface-to-surface 'Prithivi-II' ballistic missile was test-fired within an hour from Launch Complex-3 of the Integrated Test Range (ITR) at Chandipur-on-Sea.
"The flight tests were in text book fashion with the missiles reaching the target points with high accuracy," said ITR director S. P. Dash. "All the radars and electro-optical systems located along the coast tracked the missiles and monitored the parameters. The final event was witnessed from a ship located near the impact point," Dash said.
The missiles were launched by the Strategic Force Command as part of the regular user training exercise.
A successful demonstration of Ballistic Air Defence Missile System was held on 6 March, 2011, by DRDO. "The series of successful launches have boosted the morale of scientists and armed forces. The missiles have been integrated under the supervision of Missile Systems Quality Assurance Agency (MSQAA)," a DRDO release said.
Courtesy: Press Trust of India(PTI)
Saturday, February 26, 2011
The first aircraft, equipped with the antenna structure for the phased-array radar under development by DRDO’s Bengalaru-based Center for Air Borne Systems (CABS), is ready for flight testing at Embraer before its scheduled delivery to India in Aug, 2011.
Once delivered, CABS will begin integration of the AEW&C Mission System, which includes the active, electronically scanned array radar, electronic support measures, satellite communications, datalinks and operator workstations.
The full configuration is expected to fly in 2012.
The Indian aircraft incorporates several improvements. These include an in-flight refueling probe; a new electrical generation system with a second auxiliary power unit for the mission suite; and a new cooling system.
Read full Report on Aviation Week: India’s Airborne EW and Control (AEW&C) System
Friday, February 25, 2011
Missile transfers are Government to Government engagement. Raytheon is working through the US Government process to determine what we can provide to India by way of technology transfer. In missile systems, there are layers that constitute a systems capability. Raytheon’s approach towards India is likely to be to figure out what weapons we can co-develop with India. All this would be subject to US Govt. approvals.
Raytheon has established relationships with companies such as the Tatas, Godrej, Larsen & Tubro (L&T) and many different Indian companies in the public and private sector to create at least a context in how we can operate. We have also established some pilot projects with some of those partners, where we are actually working on some manufacturing specific to what we will be delivering under the MMRCA, should a platform with our content be selected. We are working very actively with L&T on the T-72 upgrade and with Tata Power Stretegic Electronics Division (SED) for upgrading the infrastructure of the IAF.
Read the full Interview: Raytheon Initiative for India
Sunday, February 20, 2011
An offset agreement is a stipulation made between a foreign supplier(Obligor) and a local company, which requires the supplier (Obligor) to fulfill certain offset commitments in that country as part of a Prime contract. For the Air India deal, Boeing’s offset commitment is to invest $1.7 billion and for P-8I maritime recce aircraft deal, it is $630 million, President Boeing said.
Boeing has already partnered with TCS , Wipro , Infosys, HCL, Infotech, Tata, etc. The Tier-I companies in the US/EU need to partner with several hundred small companies in India for offsets. As of now, mid-tier companies in India such as Maini, Dynamatic and QuEST support the A & D supply chain directly or indirectly. Opportunities exit for other similar companies to supply to US/EU A & D Companies.
A & D Sector needs skilled labour, capital, technology transfer, equipment and military or civil certification, as appropriate, in US/EU to be part of the chain.
“Entrepreneurs need to have a very good business plan supported by experts in the field. They also might need to partner with Tier-I companies. So, find partners, have a good plan, validated by experts in the field. In this business, there is no reward, if you can’t take risks”, the President said.
TTTHG-Svipja helps You develop business plan in concert with experts in the field from US/EU for You to be capable of becoming part of the supply chain of US/EU A & D Majors. Please read our Industrial Sector Partnership (ISP) Process on this Blog.
Read the Interview of President, Boeing India: International Co-operation and Offsets
Tuesday, February 15, 2011
However, Defence & Aerospace majors and others could purchase products/services from such a subsidiary. This may be cleared as an offset transaction and earn offset credits, DAC/DOFA/MOD permitting. The wholly-owned India Registered subsidiaries of foreign companies could thus form part of the supply chains of the A & D Majors, but without any offsets advantages, in cash or kind, coming to them.
Tuesday, February 8, 2011
It may be difficult to ‘swallow’ an argument that Indian Defence Industry, Govt. and Civil, are not ready to absorb offsets accruing from the ongoing defence projects. Similarly, it may not be a very valid take that any co-development/co-production, low-tech or high-tech, for a system would not develop/build the indigenous defense industry capability; technologies can be put to multifarious usage, contracts permitting.
Recent changes in the Offset Policy in DPP 2011 are to be welcomed. Civil aviation, homeland security and training – equipment, academies, etc – could help our Industry manifold. We need to ensure that we regulate and manage the offsets pragmatically.
The Govt. had initially permitted Direct/Quasi-Direct offsets, but review(s) of the Policy has brought in new areas where offsets can also be discharged. We need not unduly burden ourselves with ‘likely scams syndrome’; just play sincerely and transparently. Everything will fall in place.
Offsets for any major pgme like MMRCA/Others would encompass a fair mix of products/services delivered by an Obligor in certain % in the Offset Programs. These could relate to:
Co-development & Co-production, say about 40%.
Direct Offset Pgms including Infrastructure, say about 30%.
General Indian Defence Industry , say about 20%.
General Security, Training and Civil Aviation Pgms, say about 10%.
DAC/MOD, I am sure, would prioritize, and fix % of offsets delivery in various areas in discussions with the Obligors. And monitor implementation of the pgmes effectively.
Advocacy/Any Fear Psychosis should not derail our acquisition pgms.
Tuesday, January 25, 2011
Out of this, equipment worth Rs 30,330 Crore is to be under the “buy (Indian)” Category, Rs 33,814 Crore under the “make” Category, and Rs 8,000 Crore under “buy and make (Indian)” Category. These orders are at various stages of procurement—expression of interest, request for information / request for proposal, technical evaluation, field trials, opening of bids, contract negotiation, financial approval, signing of contract and stage-wise progress for deliveries. In addition, Indian Private Sector companies get orders for subsystems/components etc., from OFs, DRDO and DPSUs.
The total value of defence orders given to private sector companies, between March 2007 and September 2010, is worth Rs 21,193 Crore.
Private Sector A & D Companies have also participated in 51 offset proposals, which are at various stages of processes/implementation.
Click for Report:
Saturday, January 8, 2011
The scope of the offset Policy Guidelines has been expanded to include Civil Aerospace, Internal Security and Training within the ambit of eligible products and services. The List of the Eligible Offsets includes most aspects of the Civil Aerospace, including ac, both fixed wing and rotary, air frames, air engines, ac components, avionics, ac design & engg services, ac material and technical publications, flying and technical training institutions. And a wide range of weapons and services for counter-terrorism for ‘internal security’.
All this will provide wider range of offset opportunities to Obligors, and help build the indigenous capability.
Please read the Docus on http://mod.nic.in/dpm/welcome.html