CNBC-TV'18's Sapna Das caught up with Pierre de Bausset, President & MD, Airbus Group India and asked him what would be French investment plans for India and the growth strategy they are looking at?
Airbus has substantial investment plans in India's defence space going forward, says Pierre de Bausset, President and MD, Airbus Group India. "I won't provide numbers but as said we are engaged with Tata Advanced Systems (TASL) for aero replacement which we hope will go through," he tells CNBC-TV18.
In addition, the company has signed a deal with Mahindra Defence for helicopters in military applications and if it (Airbus) sets up a plant in India, the local defence and local civilian customers' needs will be assured, Bausset says.
Below is the verbatim transcript
Q: What would be French investment plans for India and the growth strategy you are looking at?
First I gave some forward looking statements and I also gave backward looking statements. I talked about how much we have been buying from India. Whenever we buy from India, we make in India because that is the structure of our company.
We are happy about how it is going so far and hope it continues this way and we had the chance of signing with Mahindra for helicopters for helicopters in military applications but if we set up a plant here we need to make sure it serves local needs in the field of defence. It will serve needs of civilian too to an extent. We have local civilian customers.
Q: You also mentioned about the FDI limits gone up but you had also said that if the management control has not given then companies will be shy of investing, what is it that companies like Airbus would be clearly looking at in terms of further relaxations in the FDI policy, have you taken it up with the Indian government?
We have taken it up through CII, FICCI. We have been speaking to people in government and expressing our concern in that respect. We are not sure if the new policy is going but we know that committee report is going round. 49 percent has already been liberalised but it comes with specific conditions. In the end, I don't have figure to give but the important thing is if a company takes risk in the beginning, it needs to have creation level of control that overtime can be relaxed and released as the local partners develop on one hand on the other hand our own risk is covered through payback.
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First Published on Jan 25, 2016 08:38 am