MSMEs eye larger pie in aerospace, defence post Vibrant Gujarat Summit

They are upbeat especially in the wake of MoUs signed during the summit

Post the state government policy and the Vibrant Gujarat Summit, MSMEs eye larger pie in aerospace and defence sector through component supply to the likes of Airbus, Boeing and Rolls Royce, among others.

MSMEs are upbeat especially in the wake of memorandums of understanding (MoUs) signed during the summit that would lead to further opportunities in the aerospace and defence component manufacturing. For instance, several companies based of Gujarat, especially Saurashtra region who already supply precision components to aircraft manufacturers as well as defence and space agencies including ISRO are anticipating a rise in business by anywhere between 25 per cent and 40 per cent in the next 2-4 years.

"With the likes of Airbus and Boeing signing MoUs in Gujarat, there is now an increased scope for precision component suppliers like us. We anticipate double-digit growth in business opportunities since the foreign OEMs are already familiar with India-based component manufacturers, even MSMEs," said Ashok Surelia, managing director of Surelia Wire-Cut Pvt Ltd.

The defence and aerospace sector has seen at least over Rs 10,000 crore worth of MoUs being signed during VGGS. Among these, Reliance Defence and Deepak Fertilizer signed MoUs worth Rs 2,500 crore and Rs 3,000 crore for manufacturing set-ups in the state. On the other hand, Rajkot-based Jaivel Aerospace signed a MoU with Boeing for setting up a defence specific training centre under the Skill India program.

"Amidst growing opportunities in the defence and aerospace sector, there will be need for trained manpower as well in future. The MoU has been signed keeping this requirement in mind," said Praveen Koti, head-business development of Jaivel Aerospace Ltd.

The component manufacturers are also upbeat over union minister of defence Manohar Parrikar hinting at a possibility of government company setting up a unit in Gujarat that could also bring business for the former.

While stating that around 20 companies have been granted licenses in defence manufacturing units in Gujarat, Parrikar also said that the minister would later visit the state to discuss possibilities of a defence PSU's foray here.