The size and other details of the deal were not disclosed. But sources said more such deals may be announced by the Tatas during the Defence Expo under way in New Delhi.
More such deals are in the offing
MUMBAI: The Tatas seem to be stepping up their plans in the aerospace and defence segments. As per an MoU signed with US-based Sikorsky Aircraft Corp, Tata Advanced Systems — a wholly owned subsidiary of Tata Industries — has agreed to make helicopter cabins for the US company’s S-92 helicopter.
The size and other details of the deal were not disclosed. But sources said more such deals may be announced by the Tatas during the Defence Expo under way in New Delhi.
Tata Advanced Systems is a newly formed subsidiary of Tata Industries which will specialise in defence.
Efforts to reach the top honchos of Tata industries yielded no result.
In a statement released to the media, the company said the initiative formed important part of the larger strategy for this (defence) sector. It added that the deal will offer productivity gains to Sikorsky while bringing new manufacturing technologies to India.
These developments come close on the heels of Boeing and Tata Industries agreeing to set up a JV to manufacture defense-related aerospace components worth around $500 million initially. Boeing had also signed an agreement with TAL Manufacturing Solutions, a wholly owned subsidiary of Tata Motors, for making floor beams for the 787 Dreamliner. Along with the low-cost engineering talent that India offers, the offset clauses on big-ticket defence and aerospace contracts have been acting as catalysts for these deals.
In 2006 the government of India had come out with a new policy for mega acquisitions whereby any defence or aviation deal whose size exceeds Rs 300 crore would trigger a minimum offset of 30% of the value into India.
While initially a large amount of these offset deals were taking place for software, recently manufacturing and engineering are also coming to the fore.
Interestingly, the defence ministry recently indicated that it will roll out a tender for the purchase of military helicopters, the value of which could run into a few billion dollars.
The two-engine Sikorsky S-92 is an evolution of the earlier S-70, used by the US Army as the famous UH-60 Black Hawk and by the US Navy as the Sikorsky SH-60 Seahawk helicopters.
In a statement, Jeffrey P Pino, president, Sikorsky, said: “India represents an expansive rotorcraft market with enormous potential and opportunity.”
The company opened an office in India in 2006 to compete for various defence contracts.
n_john@dnaindia.net
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