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Business News/ Companies / News/  Airbus Group consolidates units in India under single company
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Airbus Group consolidates units in India under single company

India becomes the first international market where local operations have been brought under a single company as part of the group's 'one-roof' policy

Pierre de Bausset will head Airbus Group India Pvt. Ltd. Photo: Bloomberg Premium
Pierre de Bausset will head Airbus Group India Pvt. Ltd. Photo: Bloomberg

Mumbai: Aircraft maker Airbus Group has consolidated its units in India under Airbus Group India Pvt. Ltd headed by president Pierre de Bausset.

India is the first international market, where local operations have been brought under a single company as part of the group’s ‘one-roof’ policy.

“Given India’s importance for us, we have implemented a new organizational structure there with Pierre in charge. There will be more internal coordination, pooling of resources and basically a far more efficient engagement with our local stakeholders. Formation of a single company will also greatly support our Make in India plans and allow us to take a leap in our relationship with the country," said Airbus Group chief executive officer Tom Enders in a statement on Wednesday.

The move comes at a time when the group is tying up with Indian partners to target several ongoing defence acquisition programmes. It has submitted a joint bid with the Tata Group to offer C295 aircraft as a replacement for the Indian Air Force’s ageing Avro aircraft.

Airbus also plans to develop and manufacture electronic sensors in India with a local partner. In the field of space, it is extending the cooperation with the Indian Space Research Organization (ISRO) to include joint development and production of larger satellites in India.

On helicopters, Airbus is in discussions with Indian companies to finalize teaming arrangements for various tenders.

“We aim to firmly embed Indian industry, public and private, in our global value chain and achieve $2 billion in cumulative sourcing from India by 2020," said de Bausset. “A mature Indian aerospace and defence sector is in our own interest. It would open up more opportunities for us to partner with domestic players to fulfil requirements of our local customers as well as jointly target export markets."

In 2014, Airbus Group—comprising Airbus, Airbus Defence and Space and Airbus Helicopters—generated revenues of €60.7 billion and employed around 138,600.

The government on Monday withdrew tax exemptions for state-run defence equipment manufacturers to encourage private and foreign companies to make equipment for the armed forces locally, and ensure a level playing field.

Not only is this expected to give a push to the government’s Make in India initiative, it is also likely to encourage more private- sector firms to collaborate with foreign partners and enter the defence equipment manufacturing business.

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Published: 03 Jun 2015, 05:45 PM IST
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