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 India focus for them to participate in Aerospace and Defence direct and indirect Offset Projects.

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 svipja@gmail.comfor 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

Indian Defense Sector Spend by 2015

The Indian defense sector is one of the fastest growing markets globally, with an estimated US$13.9 billion of the annual budget allocated for the acquisition of military hardware and technology in 2010.

Defense expenditure, which refers to the part of the budget that is spent on the acquisition of all types of military hardware and technology, has grown at a CAGR of 12.14% from 2005-09. Defense expenditure is expected to record a CAGR of 6.59% during 2010-15, to reach an annual spend of US$42.6 billion by 2015. This is primarily due to ageing military hardware and technology, domestic insurgencies and hostility from neighboring countries.

Strong growth in the sector is attracting foreign original equipment manufacturers (OEMs) and leading players from the domestic private sector to enter the market. Moreover, terrorism is leading to sharp increases in the defense budget and a shorter sales cycle, which translates as an attractive market for defense manufacturers.

The areas that are specifically expected to emerge over the short to medium-term include unmanned combat aerial vehicles (UCAVs), advanced electronic warfare systems, combat systems, rocket and missile systems, fighter and trainer aircraft, stealth frigates, and submarines. In addition, spend on IT and communications is expected to increase significantly, with a strong focus on enterprise applications, systems integration, and real-time mobile communications.

Among the defence services the Army with a budget of approximately Rs. 74,582 Crores in 2010-11 has the largest share, followed by the Air Force (Rs. 40,462 Crores), Navy (Rs. 21,467 Crores), DRDO (Rs. 9,809 Crores), and Ordnance Factories (Rs. 1,015 Crores).

Credit: USIBC and Its News Agencies

Thursday, October 13, 2011

MoD Approves Offset Proposals for the MMRCA Deal

The defence ministry approved the offset proposals for the MMRCA Deal paving the way for opening the commercial bids.

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

'Defence Offsets India Fund' and Offsets

Please read below my Post on 'Defence Offsets India Fund' dt Jun 28, 2008.

We still feel that India should create a PE Fund to Develop Indian Defence Industry incl MSMEs for Inclusive Growth with Seed Funding by the MOD, & Cash out of Unabsorbed Offset Funds Due from the Obligor(s). A difficult proposition, but must be discussed.

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.

Svipja Technologies