Boeing keen to pick equity in more local aerospace firms

On the heels of tying up with Tatas for an aerospace manufacturing joint venture (JV) and two other supply contracts since January, Boeing Corporation said it was keen to pick up equity in more companies in the sector but cited the cap on foreign direct investment (FDI) as the biggest put-downer.

"We are keen to invest more here in the manufacturing sector. We are looking at picking up equity in more companies in the aerospace area as our business philosophy is to co-create and help innovation," Boeing India President Pratyush Kumar said.

While last week Boeing inked a JV agreement with the Tatas, in February, it had roped in Bharat Forge and Dynamite Technologies as contractors for supplying critical components.

Stating that the company is keen to manufacture here, but for the 26 per cent cap in FDI in the sector, he said, "If the rules change we are keen to enter. But even with the current cap, we are keen to partner with companies here."

Kumar was taking to reporters on the sidelines of a function to launch the Advanced Machining Excellence Cell (AMEC) at IIT -Bombay's National Centre for Aerospace Innovation and Research (NCAIR).

The AMEC, inaugurated by Boeing Research & Technology vice-president Greg Hyslop, will help create a world-class aerospace manufacturing ecosystem in the country. The NCAIR was established at the IIT-Bombay in 2010 as a joint collaboration between IIT-B and Department of Science and Technology.

It has eight partners now with IIT-Bombay, DST, Boeing, Hindustan Aeronautics and National Aerospace Lab as founding partners and DMG Mori of Japan, Delcam of Germany, and Sandvik as industry partners.

Boeing works as a consortium between aerospace industries and IIT-Bombay.

When asked whether Boeing is in talks with some companies and also with the government, Kumar said they have not started exploring the options but repeated that the company is keen to do so.

If the company will increase its sourcing from the country, Kumar said, "Definitely. We are above the competition when it comes to sourcing from here and we do source a significant portion of our demands from here." He, however, refused to put a number to it, nor he was ready to share how much the company sources from the country in value terms or in percentage.