Airbus warns Indian aerospace suppliers of expansion strains at Aeromart Hyderabad

On Tuesday, global aviation giant Airbus praised Indian aerospace suppliers for their high-quality standards during the Aeromart Hyderabad convention in Hyderabad, while cautioning that rapid scaling and expansion could strain their manufacturing capabilities. The panel highlighted that India's next phase in aerospace manufacturing will rely heavily on maintaining strict quality, certification, and delivery discipline rather than just offering low costs.

During the opening day of the three-day convention, Andreas Schwab of Airbus revealed that Indian suppliers working with the company recorded significantly fewer rejected parts than its global supply base. According to Schwab, Indian suppliers achieved an average of 350 rejected parts per million last year, compared to a global benchmark of approximately 1,500 parts per million.

However, the discussion panel, moderated by Frederic Laganier of SNECI, warned that rapid expansion could challenge these quality levels as production volumes and work complexity increase. Schwab noted that several Indian suppliers could double or triple their revenue in the coming years, which will test their existing quality systems.

Brad Bourne, representing Firan Technology Group (FTG) Corporation, shared that his company is currently developing an aerospace manufacturing facility in Hyderabad. While exploring the Indian supplier base, Bourne noted that FTG found capable local firms that still lacked key industry certifications, such as AS9100, which are required by international customers. He added that FTG is examining local training options for electronic and mechanical assembly.

Sampathkumaran S.T. of HFCL emphasised that obtaining certifications is only the first step. He stated that consistency, delivery performance, and a proven track record are what truly matter to large aircraft manufacturers, suggesting that smaller firms might need to start as Tier-II or Tier-III suppliers to build capacity and experience.

Addressing the engineering talent pool, Frederic Combes of Capgemini stated that while India does not lack engineering talent, local companies require deeper knowledge in systems engineering, certification, traceability, and international regulatory requirements.

The panel concluded with Schwab noting that Airbus currently employs around 1,600 engineers at its Bengaluru engineering hub, with expectations for further growth as the company prepares for a new aircraft programme.