3 Tata JVs to set up aerospace units

The Tata Group is planning to set up three more units as a part of its aerospace manufacturing initiative in Hyderabad with an investment of Rs 1,000 crore.

Nova Integrated System, Tata Aero-structure Limited and Tata Aerospace Systems Limited, the three new joint venture companies formed by the Tata Group, would be engaged in making radar and electronic equipment for the defence sector, assembling of aircraft equipment and manufacturing of aircraft parts respectively.

A delegation led by Nova Integrated System CEO and managing director Ajit Bhavnani met Andhra Pradesh chief minister Kiran Kumar Reddy on Monday to apprise him of their new plans besides seeking necessary support from the government.

According to a senior government official, the chief minister has assured all support including speedy allotment of 125 acres of land near the Aerospace SEZ on the city outskirts.

The Tata group has already established a helicopter cabin manufacturing unit at the 250-acre aerospace SEZ. Group chairman Ratan Tata, who visited the city last November in connection with the release of the first helicopter cabin produced by Tata Advanced Systems Limited, announced that the group's new initiatives in the aerospace technology sector would be centered in Andhra Pradesh. While the group's first company in this sector commenced production of helicopter cabins for US-based Sikorsky Aircraft Corporation in November 2010 on its 50-acre campus in the Aerospace SEZ, company officials have zeroed in on 125 acres of land near the existing location for setting up of these new units.

According to the company, these new units will employ about 1,000 persons besides making an investment of about Rs 1,000 crore. Overseas partners of these joint ventures are expected to visit the country in the first half of February this year during the Bangalore Aero Show.

Besides the Tata group, other major companies such as Mahindra and TVS have evinced interest in establishing their defence-related aerospace manufacturing facilities in Hyderabad.

According to Sriram, an office bearer of the Aerospace Industries Association, another 35-40 local companies are setting up their units on 100 acre in the Aerospace SEZ and most of them are expected to start production by 2012. “The total investment potential in the aerospace manufacturing sector in Hyderabad is between Rs 15,000 crore and Rs 20,000 crore. This could be much more in future,” he told Business Standard.