Tata Advanced Systems, Lockheed Martin Joint Venture to Build C-130 Aerostructures

Discussion in 'Defence & Strategic Issues' started by chex3009, Feb 15, 2011.

  1. chex3009

    chex3009 Regular Member

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    Tata Advanced Systems, Lockheed Martin Joint Venture to Build C-130 Aerostructures

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    The Tata group has boosted its chances of becoming the preferred local partner of US firms bidding to sell medium multi-role combat aircraft (MMRCA) to India in the world's largest fighter jet deal. On Monday, Tata Advanced Systems Ltd, a subsidiary of Tata Sons Ltd, signed an agreement with Lockheed Martin Corp. to form a joint venture (JV) company, Tata Lockheed Martin Aerostructures, to build aerostructures for the C-130 aircraft produced by the US firm.

    Tata Industries Ltd, another group company, had formed a joint venture with Boeing Co. in 2008 to manufacture defence-related aerospace components in India for export to Boeing and its clients worldwide. Both Lockheed Martin and Boeing are in the race to sell 126 MMRCA to India for $11 billion (Rs.50,050 crore), along with Sweden's Saab AB, Paris-based Dassault Aviation SA, Moscow-based United Aircraft Corp., and EADS NV. Bidding is expected to begin in a month.

    Whoever wins the contract will have to source components and systems from local vendors worth at least 30% of the order's value, under India's defence offset policy. Tata Advanced Systems has also teamed up with Sikorsky Aircraft Corp. and United Technologies to manufacture S-92 helicopter cabins in India. India is becoming one of the world's largest military spenders, with the third largest defence procurement budget in Asia, according to a recent report by Deloitte Consulting India Pvt. Ltd. For 2010-11, India earmarked $32.03 billion for national defence, including $13.04 billion for acquiring new weapons systems equipment and services.

    The procurement budget is estimated to rise to $42 billion by 2015, making India one of the most attractive defence markets, Deloitte said. “Capabilities of Indian automotive companies, low-cost manufacturing centre and offset policies are driving more Indian companies to forging tie-ups with international aerospace majors,” said John Siddharth, industry analyst, aerospace and defence, for South and West Asia at consulting firm Frost and Sullivan. “However, Indian companies need to create high confidence levels in the global market, and this can be done by tying up with experienced global partners. Tata group is also looking at creating global aerospace brand by partnering with international aerospace companies to enable itself to venture into the international market,” he added.

    The Tata Lockheed Martin Aerostructures facility will come up near the Hyderabad airport in the later part of the year, a Tata Sons spokesperson said in an email. The facility is export oriented. Its products will form a key aircraft structure that Lockheed Martin will integrate and complete for global C-130 aircraft customers, a statement said. Investment details were not disclosed. The Lockheed C-130 Hercules is a four-engine turboprop military transport aircraft. The Indian Air Force recently inducted the C130J Super Hercules tactical airlift transport aircraft.

    Source : India Defence
     
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  3. Ray

    Ray The Chairman Defence Professionals Moderator

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    Will it make it cheaper for India to buy?
     
  4. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Current IAF C130s on-order will not see any cost reduction as effect this JV. If follow-on orders (?) are made by IAF, MoD may step in to negotiate costs. This deal merely means higher profit margin for LM & investment opportunity for Tatas.

    Although on long enough timeline, Tata should grow as critical partner for LM/NG/Boeing making it possible for India to call the shots in Global supply chain of US Defense products. Then only these deals will assist national interests apart from benefiting corporations.
     
    Last edited: Feb 15, 2011
  5. Yusuf

    Yusuf GUARDIAN Administrator

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    Good strategy for working out offsets. All this counts towards it.
     
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  6. cobra commando

    cobra commando Tharki regiment Veteran Member Senior Member

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    Re: Tata Advanced Systems, Lockheed Martin Joint Venture to Build C-13

    Lockheed Martin leaders visit TLMAL facility in Hyderabad

    HYDERABAD: A team of senior executives of global security and aerospace Lockheed Martin visited the Tata-Lockheed Martin Aerostructures Ltd (TLMAL) facility here. Led by Executive Vice President, Lockheed Martin International, Patrick Dewar, the team visited the facility yesterday to inspect the military transport aircraft C130-Js and tour the TLMAL site. Set up in 2012, TLMAL manufactures airframe components for the global supply chain of C-130J Super Hercules. Tata Advanced Systems holds 74 per cent stake in the JV, with Lockheed Martin holding the remaining 26 per cent stake, the company said in a statement today. "This is our first JV in India and it has strengthened our relationship with the Indian Defence customers as well as reinforced our commitment and partnership with Indian industry," Dewar said. "We are extremely pleased with the role Tata has played in ensuring that the manufacturing output at this facility is of top quality and look forward to exploring expanded opportunities for greater collaboration," he said. Lockheed Martin has already supplied six C-130J Super Hercules aircraft to the Indian Air Force and has signed a follow-on agreement for six more, to be based in Panagarh, it said.
    Lockheed Martin leaders visit TLMAL facility in Hyderabad - The Economic Times
     
  7. cobra commando

    cobra commando Tharki regiment Veteran Member Senior Member

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    Re: Tata Advanced Systems, Lockheed Martin Joint Venture to Build C-13

    Tail sections of C-130 aircraft for Lockheed Martin’s global customers are being made in India, Phil Shaw, chief executive of Lockheed Martin India told defenseworld.net. Shaw said that Lockheed Martin’s Indian joint venture with Tata Advanced Systems in Hyderabad which makes parts of the tail and centre wing box sections of the C-130 had made an impressive start in producing aero structures for the aircraft. “Major tail section aero structures for C-130s for the global supply chain are now made here in India”, Shaw said. He said that Lockheed Martin’s experience of manufacturing C-130 tail and centre wing box sections had been positive and “we feel we can manufacture more here should an opportunity present itself and the business case supports it.” Lockheed Martin supports the Indian government’s goal of indigenising the defence industry and the strategy of creating more opportunities for local manufacturing, he added. Commenting on the demands of a few international companies to treat their 100% owned Indian subsidiaries as Indian companies, he said the move would help bring in investment, technology and develop domestic human resources and intellectual capital. Shaw said that one of the successful initiatives of Lockheed Martin to develop technology in India was the DST-LM IIGP (India Innovation Growth Programme), run jointly by Lockheed Martin and the Department of Science and Technology, along with FICCI. The IIGP aims to enhance the development of India’s entrepreneurial economy by accelerating innovative Indian technologies into markets in the US and around the world.


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    Tail Section of C-130s are Made in India
     

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