GE Aerospace Plans Major Increase in Component Sourcing from India
- ByStartupStory | September 30, 2024
GE Aerospace, a global leader in engine manufacturing, is set to significantly expand its component sourcing from India, recognizing the country’s growing role in the global aviation industry. The company aims to leverage India’s engineering talent and production capabilities to enhance its supply chain, according to senior officials.
Mahendra Nair, Group Vice President for Commercial Programs at GE Aerospace, highlighted the importance of India in the company’s global operations. “India has some very capable companies with the right engineering talent and production footprint. As long as they meet the technical standards we require, the opportunity for growth is substantial,” said Nair during an interview in New Delhi.
Strong Presence in India
GE Aerospace already maintains a substantial presence in India with its manufacturing facility in Pune and the John F. Welch Technology Centre in Bengaluru. The company also partners with 13 major suppliers in the country, including Tata Advanced Systems Ltd (TASL).
Vikram Rai, South Asia Chief Executive Officer at GE Aerospace, revealed that sourcing from India had increased 20-fold between 2018 and 2022. “India is a market that is poised for tremendous growth, and we are committed to expanding our sourcing footprint here,” Rai stated.
Poised for Growth in Aviation
India’s civil aviation market is among the fastest-growing globally, with domestic carriers continuously expanding their fleets. GE Aerospace’s CFM joint venture with Safran Aircraft Engines powers many of the narrow-body aircraft in India with its LEAP engines. Presently, around 1,300 GE Aerospace and CFM engines are operational in Indian carriers.
Apart from commercial aviation, GE Aerospace’s defense systems are also integral to India’s defense infrastructure, powering platforms such as the Indian Air Force’s Light Combat Aircraft (Tejas Mk1) and various naval aircraft and battleships.
Overcoming Supply Chain Challenges
Despite ongoing global supply chain challenges, GE Aerospace remains optimistic about its future in India. “The global aerospace supply chain is under strain, and it may take two more years to stabilize. However, the demand on the supply chain continues to rise by 25 percent annually,” Nair explained.
The company employs around 3,000 people in India, with its GEnx commercial engines recently surpassing two million flight hours with South Asian airlines. Currently, 90 GEnx engines are powering wide-body Boeing aircraft operated by Air India, Vistara, and Biman Bangladesh, with Air India contributing to more than 90% of the total flight hours.