DAC clears AVRO project; makes way for Airbus and TASL

Defence Acquisition Council (DAC) has cleared Rs 12,000 crores long pending AVRO project paving way for the Airbus. Tata Advanced Systems Ltd (TASL) will be manufacturing the aircrafts for defence forces in India.

Tata Advanced Systems, only 8 years old and wholly-owned subsidiary of Tata Sons, has emerged as one of the leading private sector players in the fields of aerospace, defence and homeland security.Staff strength of Tata Advanced Systems stands at over 1,800, spread across Hyderabad and Delhi. These numbers are justified, given that Tata Advanced Systems is growing at a very fast pace. Its revenues, on a consolidated basis, nearly doubled to Rs 720 crore rupees last fiscal.

Over the last 5 years, it has built 110 fuselages for Sikorsky's S92 and 25 empennages for Lockheed Martin's C130 J Aircraft. It now wants to manufacture that same number in just half the time. Tata Advanced System is a single-source fuselage supplier to Sikorsky for its S-92 helicopters.“We were able to negotiate export-based order, long-term tenure order with Sikorsky Helicopters, one of the largest helicopter companies in the world based in the US to build the complete fuselage for one of the key helicopter platform called the S92,” said Sukaran Singh, MD & CEO of Tata Advanced Systems to CNBC-TV18.S-92 helicopters are used globally to transport VVIPs and heads of states. They will soon form a part of the squadron that will transport US president's team. Because of  the success of Sikorsky deal, it entered into a joint venture with Tata Advanced Systems where Sikorsky owns 26 percent. The Tata Sikorsky JV manufactures detailed parts of the helicopter.In the Hyderabad plant, the vertical and horizontal tail wings and the centre wing box for the super Hercules aircraft or the C-130-J are assembled. The super Hercules is considered an integral part of any armed force in the world, and is used to transport both man and machines. Singh added, “Tata Advanced Systems Lockheed Martin joint venture produces the empennage as well as the parts of the fuselage for the C130, it was being done for the last 50 years by a company called Watt in the US, and it is now being done as a single source out from India and is exported back to the US.” Over the last 2 years, enabled by its manufacturing capabilities, Tata Advanced System has been bidding for full-fledged aerospace platforms in partnership with global OEMs. It is also in the running for contracts to replace the Chetak and Cheetah helicopters used by the Indian armed forces. In addition, it has tied up with Airbus Defence to bid for India's AVRO Project. This project entails the manufacture of 56 transport aircraft for the Indian Air Force in flyaway conditions. There are reports that this project may be expanded by another 6 aircrafts, based on the Coast Guard's requirements. The entire deal, which involves buying some aircraft off the shelf, and building the rest in India, is valued at around Rs 15,000 crore.“We have partnered with Airbus to make the AVRO replacement project in India, where the process should move forward. It will be Tata Advanced Systems that will make the full aircraft in a condition that can fly away from our own facilities in India. This would be the first time in the private sector,” Singh added.If the AVRO project fructifies, it will require significant capital investmenta as Tata Advanced Systems will have to set up an even bigger facility. A facility that comes with an airstrip attached to it. Despite this, the company is confident about its prospects.