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With policy tweaks, defence/aerospace sector can open new vistas for MSMEs

V Rishi Kumar Hyderabad | Updated on November 29, 2018 Published on November 29, 2018

T-Works to provide prototyping facility

Micro, small and medium enterprises (MSMEs) are set to play a much bigger role in defence and aerospace projects and have the potential to enter into direct deals with global companies.

Experts at a CII conclave on ‘Preparing the industry for the new wave of disruptions in defence and aerospace’ here on Wednesday, felt some policy tweaks would encourage MSMEs and enable them to take a bigger slice of sourcing contracts.

KV Kuber, Director, Aerospace and Defence, E&Y, said the Defence Procurement Policy 2016 has been a game-changer for private companies, particularly the MSMEs.

Defence procurement

Even though the policy aims at 20 per cent procurement, MSMEs require some more support to achieve and scale up. Some more policy changes could make a big difference to them in attracting more investments.

Jayesh Ranjan, Principal Secretary, Industries, Telangana, said, “T-Works has the ability to provide cutting edge tech to defence and aerospace companies by providing exclusive prototyping facility. Those companies needing this facility can access it for their business.”

Explaining how a number of companies have made the aerospace park near Hyderabad their hub, including GE, Tata Advanced Systems, Boeing, and Lockheed Martin, Jayesh Ranjan said there are opportunities for MSMEs to bag contracts from global companies.

Referring to a meeting hosted by Boeing, he said representatives from more than 150 suppliers attended it. This shows the growth potential.

Technology upgradation

Referring to the importance of technology upgradation and use of new systems backed by 3-D printing, artificial intelligence and automation under Industry 4.0, experts felt that these were disruptive but could make a difference to suppliers, who must upgrade to turn globally competitive.

Competition is no longer among cities or States, it is global. When GE chose Hyderabad to locate its facility, the competition was with cities in Japan and Korea. And companies can be successful only when they scale up technologically.

Sanjay Singh, Chairman, CII, said Make in India offers an attractive opportunity to defence and aerospace companies. With excellent ecosystems, the State could look forward to garner 15-20 per cent market share. While India seeks to be self-reliant in the defence sector, it will provide immense scope and opportunities for local companies to expand their products and solutions.

Published on November 29, 2018
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