Overcoming inertia, small and medium enterprises that work in defense and aerospace segments, have started building new facilities for common defense and space specific testing, calibration and material management at the Aerospace Park at Adibatla. The group, Samuha Engineering Industries Limited (SEIL), has been allotted 200 acre, including 100 acre SEZ and 100 acre non-SEZ space.
It will also have facilities for marketing, skill development and an incubation center.
In all, there would be 30 players at the aerospace park. Of them, four companies have started building their structures. More companies have applied for the required permissions and the rest will complete the formalities shortly.
“The project has been delayed as the aerospace and defense markets were not doing well globally. The SME cluster here is a key partner in the domestic supply chain. Some of them even handle export orders as well. The aerospace park was in limbo as the companies were not getting enough orders. But now things have started to move in the right direction what with the government intent on increasing sourcing from the local companies for defense projects,” said MM Sreeram, SEIL executive director.
“We hope that all players will be ready to start operations at Adibatla in 2018,” he said adding that about Rs 100 crore has been spent in phases on the project. It was envisaged that the cluster would attract investments to the tune of Rs 1,500 crore in 2010-11, when the project was announced. “We are confident of fetching more than Rs 2,500 crore investments. We are also looking to have Indian MNCs and global OEMs operating as part of the cluster,” he said.
Companies like SEC Industries , Anant Technologies, MTAR, and others are among the companies that are part of the cluster.
SEC Industries has been around for more than six decades now and is into production of complex, cross-disciplinary products in the ground support equipment’s (GSE) and airborne areas for defense and aerospace requirements. Ananth Technologies has been supporting its clients in aerospace, automotive, transportation, construction and energy in their product development support. It offers consultancy on space and ground segments of the communications satellite. MTAR, which began its journey four decades ago, has precision machining, testing and assembly Facilities. It has made its foray into nuclear power, aerospace, defense, oil and energy and others.
The presence of an ecosystem including multiple SMEs that are a part of the supply chain and PSUs like the BEL, BDL, HAL, ECIL, DRDO Labs and other research and development institutes puts Hyderabad at an advantage to other cities, said Sreeram.
Also, the Government of Telangana, which released a draft aerospace policy, is in touch with small and medium players to look beyond incentives to build an aerospace ecosystem, he said.
The companies will continue operate from the existing premises at Balanagar and surrounding areas as well.
“The Adibatla centers will for value addition. In creating Defense and aerospace specific common facilities, it can attract global OEM’s like Boeing, Airbus, Pratt & Whitney, Rolls Royce, MBDA, and their tire 1,2 & 3 suppliers. Upcoming Indian MNC’s also will get attracted. In addition , local SME’s will emerge with about one lakh employment. Two or three sector specific clusters may emerge, if State Government focuses on local industry. The proposed sector specific State promotion policy is awaited,” said Sreeram adding that employment generation-both direct and indirect- could be about 20,000 at full capacity.
Currently, there are about 250-300 companies in Hyderabad that are working for aerospace and defense segments and employing about 15,000 to 20,000 people including the temporary staff.