Dr. Harish Pant,
Hampson Industries Private Limited.
Leveraging 'People' Power of Sustainability
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In the Indian context, Aerospace and Defence remain a high growth area. Due to changing geopolitical situation, the Indian Government intends to further strengthening of the industry. India’s space program is also accelerating as Indian Space and Research Organization (ISRO) expands its launching and manufacturing footprints.
India’s high reliance on import and subsequent offset requirement offers opportunities of scale for the companies which have invested in systems, capabilities and capacities to meet customers requirement of quality and delivery.
The industry is quite intriguing and requires very high level skills and expertise. One of the key challenges in this is creating and maintaining stream of orders; to have capacities booked while enhancing capabilities and expanding manufacturing footprint to make bigger and complex parts in volume while keeping cost base at check. Since, there is a dependence on import of raw materials, increase in prices at source and changing business and geo-political dynamism play an important role. It is thus a complex algorithm to have a profitable Aerospace and Defence business.
However, long-term view and plan being prepared by the Indian Government and policies supporting Public-Private-Partnership will help in creating right environment for the players to take a long-term view and help them prepare for long-term pportunities. For instance, recent interest by defence majors like Lockheed Martin and Boeing to set up manufacturing base for defence fighter aeroplanes in India is expected to have multiple positive impacts and strategic advantages for India.
For the industry stakeholders, I think it is time to stay invested and take long-term view of the business as the outcome will benefit the ones who have been in the game. Another essential element in this industry is to collaborate with other players. Since, this is a highly technical heavy industry, no one can do all and it’s not profitable too. Hence, building complementing capabilities and capacities should be the one of the essential outlooks.