Boeing eyes $15 bn defence order

Boeing Integrated Defence Systems, a unit of Boeing Company, is pitching for defence orders worth $10-15 billion over a period of 10 years from the Indian armed forces.

In a bid to increase its focus on the country, the company has set up an Indian subsidiary.

This is to leverage the existing aerospace market through partnerships with public and private industries, and also to take on board a few Indian companies to expand their global supply chain.

Speaking to reporters, Anil Shrikhande, vice-president and country head India, Boeing Integrated Defence Systems, said, "For the last 60 years Boeing has had a commercial aviation programme in India, but our presence in the defence sector was nil. Hence, we are here to understand the Indian defence requirements and priorities through a permanent, on-the-ground presence through an Indian office."

"We are here for two reasons -- to develop a long-term relationship with defence industries in both the public and private sectors and to pitch for defence modernisation orders. This is in addition to the company's presence in backoffice, software and engineering design," he added.

As India modernises its armed forces, it is looking at multi-role combat aircraft both for Indian Air Force and Indian Navy, multi-role helicopters and missiles.

India, by including the offset clause in defence orders, has forced global aerospace firms to look at partnerships and alliances.

"This suits Boeing well for we are working with 35 countries with $37 billion worth of business," said Shrikhande.

According to Mark Kronenberg, vice-president, international dusiness development,  Asia-Pacific Boeing Integrated Defence Systems, "The company has a rich portfolio of products and services for India, such as the 'Super Hornet' multi-role combat fighter, the multi-mission maritime aircraft, the heavy lift 'Chinook Helicopters', airborne early warning and control systems and the T-45 naval training systems."

"Boeing sees the renewed India-United States government relationship as an opportunity for growth and collaboration, and to expand our supplier network," said Dan Korte, vice-president, supplier management and procurement, Boeing Integrated Defence Systems.

Annually, the company sources $17 billion worth of goods and services from outside the United States and "we are exploring ways on how India can fit into the scheme of things on a long-term basis."

To build a supply chain for its programmes, Boeing is offering to inject new technology and process into the Indian industry, he added.