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.


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.