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.


Tuesday, December 11, 2012

Dassault Aircraft Services India Private Limited (DASIPL)

After winning contract for supplying 126 Rafale fighter aircraft to IAF, French Dassault Systems has opened an Indian subsidiary company in India.The company named Dassault Aircraft Services India Private Limited ( DASIPL) has been set up recently and it is 100 per cent owned by its French parent company.

Dassault is presently negotiating the terms and conditions, and the final price of the aircraft. with GoI , DASIPL is headed by Richard Lavaud (French).

Dassault has also entered into an agreement with Reliance Industries Limited (RIL) for partnering in defence and homeland security sectors in the country.

There was a possibility that DASIPL and Reliance work together in the combat aircraft deal.

After finalising the deal, Dassault will have to reinvest 50 per cent of the contract's worth back into the Indian defence sector.

Thursday, November 29, 2012

Saab in JV with QuEST

Saab will set-up aero-structure parts and assembly venture in Belgaum/Karnataka/India. QuEST will hold 74% in the JV with Saab 26%. These parts/assemblies are targeted at Boeing and Airbus acs.

QuEST already provides engineering services to Rolls Royce, GE and Airbus amongst others.

The Partners will initially invest USD 10 m in the JV. The JV is likely to be operational by mid-2013.

Saturday, November 3, 2012

New Defence Procurement Procedure Likely in early 2013

The IDS deputy chief urged industry to develop SMEs, to produce the components going into larger and more complex system.

The new DPP is likely to liberalise defence procurement further. This conformed to industry expectations, as it has been the trend in successive modifications to the DPP in 2005, 2006, 2008 and the currently valid DPP-2011. Matheswaran, the IDS Dy Chief, urged private industry to focus less on the high value, high technology weapons platforms (eg, aircraft and tanks) on which the big defence money is spent. Instead, he suggested, private industry should emulate the automobile parts industry by setting up manufacturing units that were part of a global supply chain. These small units would form the backbone of a countrywide defence industrial base.

In the MoD’s planning, such a defence industrial backbone is crucial for maintaining, repairing, overhauling and upgrading the complex defence platforms that are currently being bought from abroad and manufactured under licence in India.

“Rather than focusing on large weapons systems integration and manufacture as the only way, I think we need to break down the supply chain into many component parts, so that you become part of a global supply chain. If you look only at the Indian military as the only source of your order book, then you’re not going to have continuous orders for any length of time,” said Matheswaran.

The IDS deputy chief urged industry to develop small and medium enterprises, to produce the components going into larger and more complex system that would eventually be built by large conglomerates like the Tatas, L&T and the Mahindras.

Highlighting the “enormous” opportunities for private industry, Matheswaran pointed out the scope for India’s capital expenditure to grow from its current Rs 80,000 crore. “Our defence budget is still much less than the global average of three per cent of GDP. We haven’t exceeded even two per cent of the GDP,” he said.


Pipavav Defence to get investment from SAAB of Sweden

Sweden’s Saab AB will invest Rs.201 crore (250 million Swedish kronors) for a stake in Pipavav Defence and Offshore Engineering Co. Ltd, the first strategic investment made by a global defence company in an Indian shipbuilder focused on defence production.

Pipavav Defence has signed a stock subscription-cum-shareholders agreement with Saab for the sale of 24.5 million shares at a price of Rs.82 a share. The transaction is at a 7.75% premium to the average of Pipavav Defence’s.

Saab will own 3.5% of Pipavav Defence after the transaction is completed and will have an option to increase it to 10%.

Wednesday, October 10, 2012

Defence Offsets Management Wing (DOMW)

Defence Offsets Management Wing (DOMW) has been established. The key objective of the Defence Offsets Policy is to leverage Defence capital acquisitions to develop Indian defence industry by: 

  • Fostering development of Internationally competitive enterprises,
  • Augmenting capacity for Research, Design and Development related to Defence products and services and
  • Encouraging development of synergistic sectors like Civil Aerospace and Internal Security.

The DOMW under the Department of Defence Production will be responsible for formulation of Defence Offsets Guidelines and all matters relating to post contract management.

The functions of DOMW include:

  • Formulation of Defence Offset Guidelines;
  • Monitoring the discharge of offset obligations, including audit and review of progress reports received from vendors;
  • Participation in Technical and Commercial evaluation of offset proposal as members of TOEC and CNC;
  • Implementation of Offset Banking Guidelines;
  • Administration of penalties under offset contracts in consultation with Acquisition Wing;
  • Assisting vendors in interfacing with Indian Industry;
  • Other responsibilities assigned under the Offset guidelines or entrusted by the Government.

DOMW works in close collaboration with Defence Acquisition Wing for smooth implementation of the Offset guidelines.

Sunday, August 26, 2012

MSMEs Seeking High-Tech JVs and Offsets

MSMEs in India are signing MOUs with Obligors for offsets. It is good enough for initial understanding. It is NOT the MOUs that would be very relevant between companies for business, but Agreement(s) that could be enforceable by Laws of the Obligor / Home country as negotiated, for safeguards.

Pse see our Offset Process set out on this Site, Obtain Industrial License, and become Industry Sector Partner (ISP) of our US JV to steer through the High-Tech JVs, FDI ; Offset Processes, wherever feasible.

We come as Consultants/Partners to You.

You could seek further clarifications on svipja@airtelmail.in

Ours is a Private Initiative.

Visit our e-Hub of India Defence and Aerospace Ecosystem, www.IndianDefenceIndustry.com   

Saturday, August 11, 2012

Setting-up of Defence Offsets Management Wing (DOMW)

The DOMW is being set up from scratch. The DDP has so far been authorized a Defence Offsets Facilitation Agency (DOFA), an understaffed agency under a joint secretary, whose duties have been confined to putting foreign arms vendors in touch with prospective Indian offset partners. The DOMW, in contrast, will be higher-powered and more expansively manned. An Additional Secretary will head it, with a joint secretary and six full-time director-level officers under him.

“We are becoming functional right away. Six temporary directors are arriving next week from defence PSUs and the Ordnance Factory Board, until permanent officers can be posted. Eventually, civilian and military officers from all three services will man these six director-level posts,” says a top MoD officer.
Read the Full Report Presented by Ajai Shukla: Setting-up of Defence Offsets Management Wing (DOMW)

Sunday, August 5, 2012

Revised Offset Guidelines

Happy to inform that the new Offset Guidelines have been issued. Connect: http://mod.nic.in/dpm/welcome.html  These should be seen in positive light.

All the best!

Thursday, July 26, 2012

Adding More to the Indian Offset Policy

There are media reports that the DAC/MOD, India, has modified the Offset Policy further based on experience gained till date in its Meeting on Monday last, 23 Jul. Critical Defence Technologies for Offsets, 1.5 Multiplier effect for Offsets in SMEs, and Creation of Defence Offsets Management Agency (DOMA) has been  approved.

These are +ve changes.

Formal Govt. notification is awaited.

Friday, July 13, 2012

Defence Offset Approvals, Implementation and Credits

If malice is within the System, no amount of Policy Parameters on Offsets will take the Indian Defence Industry on high trajectory. Focus on ‘Business Gains’ will dilute the Policy in its Execution Phase. We need ‘passion and drive’ to stay on course to reach the end objective of modernizing the Indian Defence Industry.

Approval of Offset Projects at the RFP Stage keeping our needs in view, Project(s) Implementation, and Granting Fair credits are the key processes.

Must plug the ‘leakages’. Provide flexibility in the Policy Guidelines, and then execute it flawlessly without any slippages – that is the mantra for success.


Saturday, May 26, 2012

Pilatus Trainers for IAF from a Swiss Company with Offsets

The IAF will acquire basic trainer,75 Pilatus Planes, starting later this year for Rs 2,800 Crore from a Swiss company. The aircraft will replace its fleet of HPT-32 basic trainer aircraft.

Delivery of the aircraft and the complete training system is scheduled to commence in fourth quarter this year, as per media reports. The ac would be procured together with its integrated ground based training system and a comprehensive logistics support package.

The Pilatus will also do 30 % offsets of the cost of the deal. ToT will also be done to HAL.

Tuesday, May 15, 2012

Defence Offset Contracts Till Now (15 May 2012)

Defence Minister informed the Indian Parliament in writing on 14 May 2012 that 17 contracts worth 4.27 b USD were signed as defence offsets. Out of this, 3.43 b USD were for IAF- related projects and 843 m USD for Naval projects. Nothing for the Army; may be some would come in the coming months. 

The budge about the defence offsets in India is right, but unfortunately most of it, for the time being, is for Govt. Units, Large Private Sector Units and DRDO /Other High-End R & D  with almost none for micro and small enterprises. SMEs are likely to figure towards the tail-end unless Obligors prefer them. Offsets-Cash/Kind-given to large units are slated to yield low returns for the Indian Defence Industry for various reasons.

ToT-Quality & Depth, Valuation for grant of Offset Credits, Strict Implementation, Inclusive Distribution of Offsets, 

Plugging Leakages, ETC, should be some of the major concerns of the Govt. and Industry.

Monday, April 30, 2012

Development of Personnel for Offset Implementation

Offsets is a specialized field. You may have military knowledge, industry knowledge, required dynamism and will to contribute to the system long-term in a transparent and ethical manner with probity , but still not be able to serve as an effective Offset Manager / Consultant in the Industry.

We train You in concert with our JV Partner in the US, Tucson Transatlantic Trade Inc. Holding Group, www.ttthg.com

Tuesday, April 24, 2012

Defence Ventures with Foreign Entities to Face Closer Scrutiny

The Govt. is planning guidelines for defence sector joint ventures (JVs) between Indian and foreign firms. And these will be similar to foreign direct investment (FDI) norms for defence collaborations in certain developed countries.

The idea is to institute security and auditing procedures for JVs and their supply chains. The norms will apply to JVs based on ‘threat perception’ and the sensitivity of products to be manufactured. Such JVs will have to seek prior separate security clearances from the home ministry regarding subsidiaries, directors and foreign nationals (if engaged).

The JV companies must be owned and controlled by Indian residents and their companies. Despite the 26% FDI cap, the defence sector has attracted top overseas defence equipment manufacturers like the UK’s BAE, European consortium EADS, US-based Sikorsky and Lockheed Martin,etc.

Read Report: Defence Ventures with Foreign Entities

Tuesday, April 10, 2012

PPP for ICVs in India

The MOD/India has thrown open its doors for private players to bid for a project to build the Future Infantry Combat Vehicle(ICV).

The Army needs about 2,600 ICVs over 20 years. All four bidders—Tata Motors, Mahindra Defence Systems, L&T and the Government-owned Ordnance Factory Board (OFB)—have presented their designs. The evaluation is set to move to the final phase within a month. The Rs 50,000-crore order is likely to be divided between the winner and runner-up.

Two companies will be shortlisted and asked to build one prototype each—the manufacturing of these will be funded 80 % by the Govt.


• The systems integration of the FICV is likely to be a big challenge. The platform, the software and electronics have to be integrated for the vehicle to function well. Indian companies have little experience in this.

• Keeping it local. All the four bidders are likely to have foreign partners. The fear is that the high-end work will be done abroad defeating the purpose of the exercise. Russian aircraft have been assembled in India for decades—yet the design and development of every new generation plane was done in Russia.

Wednesday, April 4, 2012

DAC/MOD Eases the Offset Fulfillment Policy

As per media Reports , the MOD on 02 Apr 2012 eased its defence offsets norms with the value of technology transferred under a deal could be written off against the offset The offsets clause is expected to bring in investments of $30 billion in ‘cash or kind’ over the next decade. The revised provisions also make a distinction between equity and non-equity route, that is investment in "kind" made by the OEM for discharge of offset obligations.

"Investment in kind in terms of TOT must cover all documentation, training and consultancy required for full TOT (civil infrastructure and equipment excluded)", the Report said.

The TOT should be provided without license fee and there should be no restriction on domestic production, sale or export. The offset credit for TOT shall be 10 per cent of the value of buy back by the OEM during the period of the offset contract, to the extent of value addition in India.

The guidelines also noted that the technology acquisition by Defence Research and Development Organisation (DRDO) for a list of specified technologies will be treated as an eligible offset with a multiplier up to three.

It has already been decided to allow the tier-I sub-vendors under the main procurement contract to discharge part of the offset obligations on behalf of the main vendor. However, the overall responsibility for discharge of the offset obligations shall rest solely on the main vendor. The agreement between the OEM, vendor and tier-I sub-vendor and the Indian offset partner will mandatorily be subject to Indian laws.

The revised guidelines are said allow offset obligations to be discharged within a time frame that can extend beyond the period of main procurement contract by a maximum period of two years. The overall cap on penalty will be 20 per cent of the total offset obligations during the period of the main procurement contract. There will be no cap on penalty for failure to implement offset obligations during the period beyond the main procurement contract, which may extend to a maximum period of two years.

The period of validity for banked offsets has been increased to seven years.

In the discharge of offset obligations relating to direct export, foreign direct investment and technology transfer or investment in 'kind' in Indian enterprises through non-equity route, a multiplier of 1.50 will be permitted where micro, small, and medium enterprises (MSME) are the Indian offset partners. The monetary limits specified by the Indian government's department of MSME shall be applicable for identification of the MSME.

"In exceptional cases, the competent authority may permit change in offset partners or offset components provided the value of offset obligations remains unchanged. This will provide greater flexibility in implementation", the Report said.

Formal Govt. Guidelines are Awaited.

Tuesday, April 3, 2012

Mahindra JV with Rafael

Mahindra & Mahindra Ltd and Rafael Advanced Defense Systems Ltd, a manufacturer of defence systems for air, land, sea and space applications, today agreed to form a Joint Venture in India to develop and manufacture products such as Anti Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armouring Solutions and remotely operated weapon stations for Futuristic Infantry Combat Vehicles (FICV).

Rafael will make investments in Mahindra's existing Naval Systems division in Pune which will also be the location of a production facility which will be set up to meet the long-term requirements of the JV company.

The companies have also approached the Foreign Investment Promotion Board (FIPB) for creation of a 74:26 company, the company statement said.

Link: Mahindra JV with Rafael

Saturday, March 31, 2012

Def Expo 2012: MOD Reaffirms Its Resolve to Grow Indian Defence Industry

DG (Acquisitions) indication of the MoD’s inclination towards private sector participation by strongly supporting the “Make” procedure. According to the Defence Procurement Procedure, this allows private industry to bid for building complex military platforms, with the MoD funding 80% of the cost of development. There are currently only two “Make” projects being pursued: the Future Infantry Combat Vehicle (FICV); and the Tactical Communications System (TCS).

“To build up the defence base, we need to generate a lot of “Make” procedure (procurements). We will make a list of 150-180 “Make” procedure projects…. to energise the industrial base of the country.

RRM, however, cautioned the private industry not to expect a fully-funded stroll into defence production. “The industry also needs to commit itself to the field in terms of establishing the required infrastructure and develop the capacities. Commitment to R&D effort is also required by the defence industry both in the public and private sector if the long-term goals are to be met,” said Shri Raju.

Read Ajai Shukla's Report: Defence Min signals growing acceptance of private sector

Wednesday, March 28, 2012

Def Expo 2012, New Delhi, 29 Mar – 01 Apr 2012

There are going to be 232 foreign firms, mainly from the US, Russia, France, Israel, the UK and Germany, and 60 official delegations in town this week for the four-day "Def Expo 2012' that begins on 29 Mar.

Over 335 Indian exhibitors, including major ones like Tatas, Punj Lloyd, L&T and Mahindra, will also be there to explore tie-ups and joint ventures with foreign companies as well as DRDO, defence PSUs and domestic shipyards.

"We understand fully well that indigenization cannot happen through only defence PSUs. We have taken several steps to encourage the private sector," said Mr Shekhar Agarwal, Secretary (Defence Production).

The Defence Ministry has been pushing for JVs and Technology Transfers to strengthen the Defence Industrial Base in India. FDI is 26% in the Defence Production Sector.

Tuesday, March 20, 2012

'Man-Machine-Logistics' Optimization

“Indian Air Force (IAF) is highly professional, and its fighter pilots super. A 'flying machine' would always have certain limitations for certain reasons, may be non-compliant in some ways. It is the pilot-machine team that would deliver the results unimaginatively”. Discuss.

This discussion started by Me on Linked-in about a month ago in ‘Aerospace and Defence Group’ is inviting insightful comments and views many ways.

A Very Useful condensed knowledge on fighter ac!

Pse visit: Man-Machine-Logistics Optimization


Saturday, March 17, 2012

Defence Offsets Implementation Debate

John Williams has started a very interesting discussion on offset Implementation on Linked-in at

John’s Discussion on Offsets

My rejoinder on Comments till date is as under:

I did not suggest the Offset Implementation structure in the MOD by design. Wanted it to evolve naturally in Indian conditions.

I think the answer lies in creating an indep 'Offset Implementation Agency' under an Addl secretary/secretary level officer with minimal staff to support it, and expertise drawn, as it is, from the working desks of Acquisition Wing, DDP, DRDO, DGQA, Ministries of Home Affairs and Aviation, Defence Services, etc without burdening the existing MOD set-up for obvious reasons.

Offset Project Approvals should continue to remain with the DOD as of now. Will ensure transparency and probity. DOFA organized to clear the Offset Credits. Offset Implementation Agency just implements offset projects in concert with the offset recipients. In this concept, offset projects approvals, ground implementation of offsets, and approving offset credits are the responsibility of different offices. This would ensure transparency, and the fact that offsets are not diluted/'leaked'.

I am sure the Indian MOD has requisite expertise and experience in evolving organizations meeting Indian ethos. A Single Point Agency, all inclusive, is likely to run into lots of difficulties, and representations/complaints as a result affecting the acquisition process.

The Organization will not be what each stakeholder desires, but an optimized set-up per our system of governance for the strategic sector.

Friday, March 9, 2012

Mirage 2000 Upgrade for the IAF by Dassault and Thales

French firms Dassault and Thales will upgrade is to upgrade IAF Mirage 2000 fleet under a deal worth $2.4 billion. The Indian government has started making payments for the deal to upgrade the Mirage ac as per a media report.

Under the deal, the French firms will help in upgrading the avionics, navigation systems, mission computers, electronic warfare systems and radars bringing the aircraft to the Mirage-2000-5 standards. The French companies will have to invest over $900 million into the Indian defence sector as defence offsets.

As per the agreement, India has sent two of its aircraft to France for upgrades and thereafter the rest would be upgraded at Hindustan Aeronautics Limited facilities.

Mirage 2000 Upgrade for the IAF by Dassault and Thales

Thursday, March 8, 2012

MOD India Blacklists Six Defence Firms

India has blacklisted six armament firms for 10 years on bribing charges.

The sanctions targets four foreign companies, namely Israel Military Industries (IMI), Singapore Technologies Kinetics Ltd, Switzerland's Rheinmetall Air Defence, and Russia's Corporation Defence (CDR).

The other two companies targeted, RK Machine Tools Ltd and TS Kisan and Co Private Ltd, are both Indian.

Report: MOD India Blacklists Six Defence Firms

Wednesday, February 8, 2012

MMRCA Deal a Shot in the Arm for Industry

The impending $12 billion contract to buy 126 Medium Multi Role Combat Aircraft (MMRCA) by the defence ministry from Dassault, is set to be a game changer for the Indian aerospace and defence industries with about $6 billion worth of offset contracts expected to flow to Indian companies.

This deal, as and when signed, ensures that Dassault along with its two major suppliers Thales and Safran Group would place offset contracts on Indian vendors amounting to minimum of 50 per cent of the value which in this case could be $6 billion and this obligation would be co-terminus with fulfillment, which is 12 years span.

With this, new technology absorption, world class facilities, adaptation of cutting edge processes, systems and the skilled manpower would create a formidable ecosystem for India to compete in the global marketplace.

Of the $6 billion in offset money flowing into India, about 50 per cent is likely to be spent on manpower. On an average of $20,000 per man year, this would mean 150,000 man years of new jobs in the defence aerospace industry. This would translate into 5,000 jobs in the3rd year and stabilize at 20,000 jobs in the ninth year. Also, all support services like maintenance, training and logistics have to be provided by Indian industries with the technology and know-how of Dassault, Thales and Safran for the next 40 years. This could create an additional 4,000 jobs. And more……

Read the Complete Article: MMRCA Deal a Shot in the Arm for Industry

Wednesday, February 1, 2012

Indian MMRA Competition Declares Dassault Rafale as L1

"The French firm Dassault Rafale has emerged as the L-1 (lowest bidder) and cheaper than its European rival EADS (maker of Eurofighter) in the tender and will be offered to supply the aircraft to the IAF."

French company Dassault Rafale today qualified to bag India's contract for supplying 126 combat ac for the IAF.

Dassault Rafale as the lowest bidder, is likely to get the contract under India's Defence Procurement Procedure. Further negotiations are likely to move with Dassault in this deal.

The TOI Report: Indian MMRA Competition Declares Dassault Rafale as L1

Monday, January 30, 2012

Private Sector Participation in Defence Production: Industrial Licensing and FDI Issues

India has permitted 100 % participation by the private sector in defence sector, with foreign direct investment (FDI) permissible up to 26 per cent in the manufacturing, subject to licensing and security clearance. However, 100 % FDI is permitted in the case of the services sector.

By October 2011, the Department of Industrial Policy & Promotion (DIPP) gave 200 Letters of Intent/Industrial Licenses (LoI/IL) to various private entities, with proposed investment totaling Rs 11,773 Crore, and potential employment opportunities for 38,579 people. By November 2011, a cumulative FDI of Rs 17.68 Crore (US $3.72 m) was received by the Indian defence industry.

As per the guidelines of the DIPP, defence falls under the ‘Manufacturing’ sector. So, the companies in the manufacturing business can apply for a license and get it (subject to approval), and be formally part of the defence industry. However, this is not the case for companies in the services sector (such as, engineering, design and software, etc.), which do not come under the purview of ‘Manufacturing’, and hence do not require a license for their services. Consequently, they are not formally part of the defence industry, even though their services have direct application in defence products.

For the services sector, the equivalent minimum equity share (by the Indian shareholder) is 51 per cent in order to be called an Indian company. However, Defence Offset Facilitation Agency (DOFA) —responsible for facilitating offsets in defence contracts—insists that companies in the services sector must have a minimum 74 % domestic equity share in order to participate as an Indian Offset Partner.

Full Article with Other Implications: Private Sector Participation in Defence Production

Saturday, January 28, 2012

Aerospace and Defence exports likely to reach USD 2 billion in 2011-12

Aerospace and defence exports are likely to clock two billion dollars in the current fiscal, industry chamber Assocham has said.

With about 18% growth during the first three quarters of 2011-12, aircraft exports including component parts stood at about 1.31 billion dollars against 1.11 billion dollars in the corresponding period of previous fiscal, Assocham said.

Parts and components have contributed a major 96% of the total aerospace exports, highlighting India's manufacturing capability in aerospace sector oriented towards tier I, II and III suppliers as against aircraft Original Equipment Manufacturers (OEMs).

Read the Report: Aerospace and defence exports likely to reach USD 2 billion in 2011-12

Tuesday, January 24, 2012

Thales-Samtel Defence Systems (SDS) Partnership

Thales has a joint venture company, Samtel Thales Avionics. Thales' offset liability from the Mirage upgrade contract for Euro 1.47 b (Rs 9000 Crores) amounts to Euro 441 m (Rs 3,000 Crores). That induces Thales to source from SDS a significant share of the avionics (aviation-electronics) for upgrading the Mirage-2000. SDS already supplies Hindustan Aeronautics Ltd (HAL) with cockpit displays (multi-function displays, or MFDs) for the Sukhoi-30MKI fighters that are built at HAL's Nashik plant. The Ghaziabad-based company is also competing to build avionics for the IAF's forthcoming Sukhoi-30 MKI upgrade.

And, if the Rafale fighter — built by Dassault with a large avionics component from Thales — is chosen by the MoD as the IAF's new medium multi-role combat aircraft (MMRCA), SDS could benefit enormously from another wave of offset-driven orders for display systems and other avionics in the 126 MMRCA.

Read the Full Report: Thales-Samtel Defence Systems (SDS) Partnership

Saturday, January 14, 2012

Indian Defence Industry, Defence Exports and Offsets

A number of Private Indian A & D Companies have obtained Letter of Intent / Industrial Licenses for manufacture of defence products & Services in India. These products would have markets in India and abroad, quality and price being primary issues. It is important that JVs or any other type of co-operation are set-up with such manufacturers/vendors which bring-in international standards to the firm.

The companies could invest in production themselves, or seek offset funding in addition to other sources of funds. DPP 2011 and other regulations of the MOD/India set the stage for the industry in the Private Sector to develop and manufacture defence products.

We at http://www.freemarketsdefence.com/ / http://www.indiandefenceindustry.com/ are aggregating the industry into the global landscape. This adds value to the industry manifold, in various ways. Please contact Us at svipja@airtelmail.in for your defence exports, offset fulfillment, and any other requirement relating to the Indian Defence Industry.