AERO INDIA 2019 SUPPLEMENT www.aeromag.in n SKILL SPECTRUM Page - 23 1 thalesgroup.com The people we all rely on to make the world go round, they rely on Thales - ©Getty images Shutterstock Search: Thalesgroup 2 20th - 24th Feb 2019, Bengaluru Soaring New Heights On Our Journey To Digital CIWS Visit us: Chalet no. 39 & 40 Aerospace Aerospace | Artillery | Armoured Vehicles Components Helicopters Protected Vehicles | Missiles & Air Defence Ammunition | Defence Electronics Artillery Jet Engine Armoured Vehicles Spice 1000/250 E cars BHARAT FORGE LTD | KALYANI STRATEGIC SYSTEMS LTD | BF ELBIT ADVANCED SYSTEMS PVT LTD KALYANI RAFAEL ADVANCED SYSTEMS PVT LTD | BF PREMIER ENERGY SYSTEMS PVT LTD | ANALOGIC CONTROLS INDIA LTD Kalyani Group, Mundhwa, Pune - 411036, INDIA, Tel: + 91-20-67042387 / 67042777 3 4 5 VIGVEN TECH MARK Pvt Ltd. #26, RBI Colony, 2nd Main, Ananda Nagar, Bangalore 560 024 +91-80-2333-9220 / +91-80-2354-1313 [email protected] www.vigven.com BC Instruments Precision Machining is what we do 100% Export Oriented Unit AS 9100 D certified We stock extensive range of materials to kick start FAI On site Surface Treatment, NDT (NADCAP approved) BC Instruments India Pvt Ltd Anand, Gujarat [email protected] www.bci-india.com “15 years of global experience in Aerospace Industry” Supremacy in Accuracy 6 7 8 9 No MSMEs, No ‘Make in India’ By R.Chandrakanth continue to struggle, contracts. The SIDM plays a living in an uncertain role as a facilitator between he faster the business environment.” foreign players and Indian realisation on industries in identifying Tthe part of the Uncertain Orders and developing the right government and also Narrating how MSMEs partnerships. Within the original equipment lived on ‘uncertainity a year of its existence, manufacturers (OEMs) of orders by the OEMs’, SIDM has developed that the base for defence Prakash said “sustainability foreign partnerships industrial eco-system is the is not there for MSMEs. from five countries. micro, small and medium For instance, I develop As per the revised enterprises (MSMEs), a product, investing guidelines in the Defence the faster will there be substantially, and then the Procurement Procedure translation of the ‘Make Defence PSU calls for a (DPP) 2016, any capital in India’ programme. We tender where the L1 bags acquisition categorized hear of this intent from the the order, then all my efforts as ‘Buy (Global) or ‘Buy or government intent, now of product development Make with ToT’ with value and then and it has come goes waste. There has to of Rs. 300 crore or more, out with some policies be consistency of orders.” is required to offset 30 accordingly. However, The rationale to opt for L1 % of the value of foreign much needs to be done, needs to be questioned, he exchange spent through policy-wise, to ensure adds stating that under- Indian Offset Partners (IOP). that the MSMEs not just quoting to win an order This offset is discharged survive, but thrive. They does not really help either through various means such thrive, the OEM’s thrive. the vendor or the OEM as purchase (of goods or The Centre has been and in the end there will services) and investments aggressively promoting the be cost overruns, delays, (foreign direct investment ‘Make in India’ programme sub-standard product – FDI or through transfer of and is also laying emphasis etc. Standardisation of technology). This clause has on MSMEs, but somewhere pricing is essential. been fine-tuned to support along the bureaucratic He mentioned how the the MSMEs through a maze there are stumbling MSME Defence Suppliers multiplier clause. Offsets blocks. For the bureaucracy, Group (MDSG) had been made through MSMEs will the MSMEs come only as created to link the existing be counted as 1.5 times an afterthought, while it and aspiring suppliers the actual offsets made. should be right up there. with the high value added Thus the MSMEs (not just At various forums, defence capital acquisition aerospace and defence) speaker after speaker have market. The particular have the potential to be talked about the immense focus of FISME has been the engine for growth, opportunities that have to link MSMEs with the provided the government opened up in the defence lucrative Make I and II puts in place the right set industrial realm and how initiative of the defence of support and an enabling policy tweaks are necessary, ministry under which framework. The share of if MSMEs have to flourish. projects up to Rs. 25 crores MSMEs in GDP was 28.77 Mr. Prakash Pushpak, the are reserved for MSMEs in 2015-16 and it has been Chairman of the MSME with government bearing hovering around in that Defence Suppliers Group the development costs. range for some years now. of FISME (Federation of Echoing similar thoughts However, it has potential Indian Micro and Small & at a meeting, Lt. Gen. to go up as ‘Make in India’ Medium Enteprises) and Subrata Saha (Retd), gathers momentum. It the Managing Director Director General of has potential to generate of Pushpak Products Society of Indian Defence employment to the India Pvt Ltd, mentions Manufacturers (a wing of extent of 50 per cent of how the ‘Make in India’ the Confederation of Indian the overall employment, programme, while being Industries) said there are more than doubling the a good initiative, has just numerous opportunities current MSME workforce remained on paper. “Unless for MSMEs created by the of 110 million across the officials understand Defence Offset clause agricultural, manufacturing the issues on the ground, imbibed in the import and services sectors. As the MSME sector will orders placed in defence regards MSMEs pertaining 10 UNITED STATES SINGAPORE AIM MRO PTE LTD Corporate Headquarters, Tel: (65) 6546-3551 AIM MRO LLC Fax: (65) 6546-3552 375 Center Street #175 email: [email protected] Miamiville, Ohio, USA 45111 Tel: (513) 831-2938 India (Bangalore) Fax: (513) 831-3859 Represented by Maxon Engineering email: [email protected] email: [email protected] AIM MRO has cultivated a strong presence in the material supply chain of Maintenance, Repair, and Overhaul companies in the turbine industry. Offering value-added material management solutions for consumable products helps our global customers to a standardized products among multiple sites, leverage their spend, meet their inventory goals and maximize their savings. Products • Braze powders, paste, tape, preforms, honeycomb • Masking for thermal spray, shot peen, grit blast • Thermal spray powders • Weld wire • Sheet metal details Engineering The AIM MRO engineering team works with our overhaul and repair customers to provide complete technical support on the products that we offer. In addition, our engineering team aides our customers in repair development, new product introductions and maximizing the effectiveness of their repair processes all of which delivers significant cost savings. Approvals AS9100, GE, Pratt & Whitney, Rolls Royce, Snecma, MTU, Honeywell AIM MRO offers high temperature vacuum brazing training twice a year at our corporate headquarters. We can even come to you if you desired. Please contact for more details 11 To prop up the MSMEs the government has tweaked the DPP-2016 and they include: * In ‘Make’ category of capital acquisition, Government funded projects with estimated cost of prototype development phase not exceeding Rs.10 to defence & aerospace sectors, a hotspot for defence suppliers, The Director, Planning and crore and Industry funded in 2014 the sector size was with a significant share of Coordination, Ministry of projects with estimated cost estimated at 216 (000 INR crores) MSMEs. The heartening part is Defence, Ravin Kulshrestha said of prototype development and expected to touch 340 that over the last decade or so, “We are looking to increase our phase not exceeding Rs.3 crore (000 INR crores) by 2020. The the MSMEs have emerged as vendor base as self-reliance are reserved for MSMEs. compounded annual growth a dynamic sector and with the and indigenisation are crucial.” * It has been mandated to rate till 2020 has been pegged ‘Make in India’ programme the There was a call to all the involve MSME associations at 8 per cent and the current MSMEs are helping in shifting MSMEs to take advantage of the while carrying out feasibility employment is three million. the focus away from the services policies and to start by ‘picking studies for ‘Make’ projects. The employment rate can go sector to manufacturing. the low hanging fruits’. The MSMEs have also been granted up exponentially only if there There has to be fair amount of Defence Research Development relaxation in the registration were more facilities to train and handholding that needs to be impart manufacturing skills done for MSMEs by some of the to the younger generation. major defence units, both public Finding skilled manpower in and private. The public sector the sector is a major challenge. units are doing that but that Prakash states that there are we are told is not enough. For other challenges too including instance HAL has implemented access to funding and not having the procurement policy for micro a cluster-concept. Welcoming and small enterprises which the work that is going on in the extends facilities to MSEs such aerospace park in Bengaluru as issuance of tender sets free of and the proposed defence cost, exemption from payment industry production corridors of earnest money deposit (EMD), (one in Tamil Nadu and the L1+15 per cent price preference other in Uttar Pradesh), Prakash and free registration for Startups. said the synergies of different The importance of MSMEs units in the cluster would can be gauged from the fact Organisation (DRDO) has and profitability criteria for accelerate the development of that the Committee of Experts opened up 26 technologies consideration as eligible “Indian a much needed ‘eco-system’ under the Chairmanship of that the private sector can Vendor” for participation for defence production.