Mission Statement

Aerospace Supplier Development Mission to India

New Delhi, Bangalore and Hyderabad

November 9-13, 2009

Mission Description

The United States Department of Commerce, International Trade Administration, U.S. and Foreign Commercial Service (CS) is organizing an Aerospace Supplier Development Mission to India November 9-13, 2009.

The Aerospace Supplier Development Mission to India is intended to include representatives from a variety of U.S. aerospace industry manufacturers and service providers.  The mission will introduce these suppliers to end-users and prospective partners whose needs and capabilities are targeted to each U.S. participant’s strengths.  Participating in an official U.S. industry delegation, rather than traveling to India on their own, will enhance the companies’ ability to secure meetings in India.  The mission will include appointments and briefings in New Delhi, Bangalore and Hyderabad, some of India’s major aerospace industry hubs.  Trade mission participants will have the opportunity to interact extensively with Commercial Service (CS) India aerospace specialists to discuss industry developments, opportunities, and sales strategies. 

Commercial Setting

The Indian aerospace sector ranks among the world’s most dynamic, with airlines in India in the process of buying over 300 aircraft valued at about $35 billion between 2007 and 2012.  India also represents a large and growing annual market for air defense equipment, estimated at $3-4 billion.  India is planning major procurements of military aviation hardware and is also upgrading its surveillance, defense and strike capabilities, in keeping with its expanding strategic role as a regional power.  Expenditures are needed to keep pace with this growth.  New product requirements (especially multi-role combat aircrafts) and the replacement needs of the military aviation sector are expected to cost about $15-20 billion over the next 3-5 years. 

The Indian market is particularly promising for U.S. suppliers seeking joint-venture opportunities.  Indian aerospace companies are trying to evolve as serious players in the global market.  The evolution of the Indian aerospace industry is part of a broader industry trend toward supply chain consolidation and the embrace of lean manufacturing.  Many traditional first-tier supplier responsibilities are being pushed down the supply chain to second- and third-tier suppliers.  As the larger firms move into aerospace system integration, the lower-tier suppliers have little choice but to globalize themselves.  In many cases, once established in India, the first-tier firms require their supply chain partners to begin dealing directly with Indian members of the supply chain.  While extremely challenging for SME suppliers, these new relationships bring an added benefit – the opportunity for additional sales with other aerospace companies doing business in India.

The first stop on the mission itinerary is New Delhi, India’s capital and home to India’s Ministry of Civil Aviation, Ministry of Defense, and Airport Authority of India.  In meetings with representatives of these government entities the U.S. mission members will learn about policies and opportunities in the country’s aerospace industry, including the Indian Government’s Aviation Cooperation Program, a public-private partnership with the U.S. Trade Development Agency, the U.S. Federal Aviation Administration and U.S. aviation companies designed to support India's civil aviation sector modernization priorities.

Bangalore and Hyderabad, the second and third stops of the mission, are both located in southern India, considered the home of the Indian aerospace industry.  Bangalore is home to India’s largest aerospace firm, Hindustan Aeronautics Limited (HAL), which has partnerships with several U.S. and foreign companies, 19 production units, and nine research and design centers in seven locations in India.  Also headquartered in Bangalore are India’s Space Agency – the Indian Space Research Organization – and related organizations such as the National Aeronautical Laboratory, Aeronautical Development Agency and the Aeronautical Development Establishment (with a host of related aerospace companies).  Additionally, many aerospace component suppliers, distributors and agents are based in Bangalore, which will serve as a good location for matchmaking and networking. 

Hyderabad has emerged in recent years as an aerospace hub, with the development of the Aerospace Special Economic Zone.  The Hyderabad areas has become as a key platform for civil and defense aircraft component manufacturing; aircraft maintenance, repair and overhaul; test laboratories and training; and research and design.  In Hyderabad the delegation will have opportunities to meet with tertiary companies, such as those manufacturing aerospace components and providing related IT work.  The Hyderabad portion of the mission will include site visits to Bharat Electronics Limited and other local facilities serving India’s aerospace sectors.

Mission Goals

The goal of the Aerospace Supplier Development Mission to India is to 1) introduce U.S. companies to joint-venture groups, industry representatives, and Western original equipment manufacturers in India; and 2) introduce U.S. companies to industry and government officials in India to learn about various aerospace program opportunities.

Mission Scenario

In New Delhi, the U.S. mission members will meet with officials from the Ministry of Civil Aviation, Ministry of Defense, and Airport Authority of India, and take part in business matchmaking appointments with private-sector organizations.  In addition, they will attend an Embassy briefing and networking event with multipliers, and will have the opportunity to learn from experiences shared by members of the Aviation Cooperation Program.  In Bangalore and Hyderabad, they will participate in additional markets briefings, site visits, one-on-one business matchmaking appointments, and networking activities.

Matchmaking efforts will involve multipliers such as the Confederation of Indian Industry, Federation of Indian Chambers of Commerce and Industry, the Indo-American Chamber of Commerce and the American Chamber of Commerce/India.  U.S. participants will be counseled before and after the mission by U.S. Export Assistance Center trade specialists, primarily by members of the Aerospace and Defense Technology Team.  Participation in the mission will include the following:

• Pre-travel briefings/webinar on subjects ranging from business practices in India to security;
• Pre-scheduled meetings with potential partners, distributors, end users, or local industry contacts in New Delhi, Bangalore and Hyderabad;
• Transportation to airports in New Delhi, Hyderabad and Bangalore;
• Meetings with Indian Government officials
• Participation in industry receptions in New Delhi, Bangalore and Hyderabad;
• Meetings with CS India’s aviation industry specialists in New Delhi, Bangalore and Hyderabad;
• Networking receptions in three cities of the trade mission.

Proposed Timetable

Mission participants will be encouraged to arrive Saturday, November 7, to allow time to adjust to their new surroundings before the mission program begins on Monday, November 9.  An optional visit to Agra and the Taj Mahal, at participants’ expense, will be offered on Sunday, November 8.

PARTICIPATION REQUIREMENTS

All parties interested in participating in the Aerospace Supplier Development Mission to India must complete and submit an application for consideration by the Department of Commerce.  All applicants will be evaluated on their ability to meet certain conditions and best satisfy the selection criteria as outlined below.  The mission is open on a first come first served basis to 10 qualified U.S. companies.

Fees and Expenses:

After a company has been selected to participate on the mission, a payment to the Department of Commerce in the form of a participation fee is required.  The participation fee will be $6,250 for large firms and $4,885 for a small or medium-sized enterprise (SME)¹,which includes one principal representative.  The fee for each additional firm representative (large firm or SME) is $500.  Expenses for lodging, some meals, incidentals, and travel (except for transportation to and from airports in-country, previously noted) will be the responsibility of each mission participant.

Conditions for Participation:

• An applicant must submit a completed and signed mission application and supplemental application materials, including adequate information on the company’s products and/or services, primary market objectives, and goals for participation.

• Each applicant must also certify that the products and services it seeks to export through the mission are either produced in the United States, or, if not, marketed under the name of a U.S. firm and have at least fifty-one percent U.S. content. 

Selection Criteria for Participation

Selection will be based on the following criteria:

• Suitability of a company’s products or services to the mission’s goals
• Applicant’s potential for business in India, including likelihood of exports resulting from the trade mission
• Consistency of the applicant’s goals and objectives with the stated scope of the trade mission

Any partisan political activities (including political contributions) of an applicant are entirely irrelevant to the selection process.

TIMEFRAME FOR RECRUITMENT AND APPLICATIONS

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Commerce Department trade mission calendar (http://www.ita.doc.gov/doctm/tmcal.html) and other Internet web sites, press releases to general and trade media, direct mail, notices by industry trade associations and other multiplier groups, and publicity at industry meetings, symposia, conferences, and trade shows.  Recruitment for the mission will begin immediately and conclude no later than September 25, 2009.  Applications received after that date will be considered only if space and scheduling constraints permit.

Contacts

U.S. Commercial Service Aerospace and Defense Technology Team:

Ms. Danielle Dooley
US Commercial Service Denver
1625 Broadway, Suite 680
Denver, CO 80202
Tel: (303) 844-6623 x214
Fax: (303) 844-5651
Email:  Danielle.Dooley@mail.doc.gov

U.S. Commercial Service in India:

Mr. Yash Kansal
U.S. Commercial Service New Delhi
Ph: 91-11-23472000, ext 2187
Fax: 91-11-2331 5172
Yash.Kansal@mail.doc.gov

Mr. Leonard Roberts
U.S. Commercial Service Bangalore
Ph: 91-80-2220 6402
Fax: 91-80-2220 6405
Leonard.Roberts@mail.doc.gov

Mr. Pandrangi Radhakishore
U.S. Commercial Service Hyderabad
Ph: 91-40 2330-5000
Fax: 91-40 2330 0130
Pandrangi.Radhakishore@mail.doc.gov