Boeing, Tata team up to make Apache fuselages in India

Boeing Co and Tata Advanced Systems (TASL) will float a joint venture (JV) for manufacturing fuselages for the AH-64 Apache attack helicopter in India.

The JV will set up a center of excellence (CoE) and it'll also be in competition for getting contracts to make additional Boeing platforms including commercial and defense.

The $620-billion India's defense budget allocation for 2014-22 will result in annual business potential for Indian companies to the tune of $41 billion up to 2022.

TASL is a wholly-owned by India's corporate conglomerate Tata Group. Boeing and Tata made this announcement of JV at the ongoing Dubai Airshow in Dubai. However, the company didn't furnish any information on financial details.

Pratyush Kumar, President, Boeing India, said: "Over the last 12 months, we have doubled our sourcing from India and are committed to continue that journey."

The operational scale and expertise of TASL make it an ideal manufacturer in the Indian aviation sector for making large-scale systems integration work.

The JV will initially manufacture aero structures for the AH-64 Apache helicopter. Boeing and TASL plan to develop the JV into a comprehensive manufacturing unit over the years. The JV will focus on developing and selling integrated systems in the aviation industry.

Boeing has recently bagged an order for 22 AH-64 Apache attack helicopters and 15 CH-47 F Chinook heavy-lift helicopters.

Boeing and Tata Group have also forged alliances to make aero structures for the former's commercial and military aircraft.

Tata Advanced Materials has recently completed an order for composite panels for the power and mission equipment cabinets. Another company of Tata Group TAL Manufacturing Solutions is engaged in developing complex floor beams for Boeing 787-9 aircraft.

Boeing's sourcing from India has been doubled during the past 12 months. Boeing sees the latest partnership would bring in India's industrial capability and innovation to its long-term competitiveness.

The latest JV with Tata Group will strengthen the position of Boeing to enhance its market share.

India's defense budget allocation during 2014 and 2022 would be $620 billion. About half of this budget will be capital expenditure.

This will result in an annual business potential for Indian companies to the tune of $41 billion up to 2022 and $168 billion in total, according to report from Federation of Indian Chambers of Commerce and Industry (Ficci).

S Ramadorai, chairman at Tata Advanced Systems said: "This agreement to establish a joint venture will propel the growth of the Indian aerospace sector by leveraging world-class competencies of the company and its supplier ecosystem."

TASL is one the few companies with aviation expertise in India and it manufactures and assembly both the helicopters and aircraft. Indian aviation industry is attracting global majors.

Mahindra Group, another major industrial group in India, has teamed up with Europe's Airbus Helicopters in last July. The JV will make helicopters in India.