Rolls-Royce, HAL mull JV for aero-engine components
08 Jan 2010
Bangalore: British and Indian aerospace giants, Rolls-Royce Group Plc and Hindustan Aeronautics Ltd (HAL) will set up a joint venture firm in India to locally manufacture civil aero-engine components and sub-systems for export. The JV is likely to be set up in four months.
It is being given to understand that both partners will initially invest $4 million (Rs18.4 crore) each in the Bangalore-based unit. Rolls-Royce will step up sourcing of components and systems for most of the engines it makes through this venture.
Rolls have already been sourcing ring forgings for their civil engines from HAL since 2003. The company's engines power passenger planes from Airbus and Boeing, as well as a wide variety of military aircraft and also marine vessels.
For HAL this is a fine opportunity to expand revenues from its non-defence business, which last year brought in less than 5% of its total revenue of Rs10,373 crore.
It is also being given to understand that the Indian public sector aerospace giant may be engaging the US unit of Rolls for a JV to manufacture military aircraft engines.
India is an old customer of Rolls-Royce's military engines with its fleet of Jaguar fighters, currently the Hawk advanced jet trainer, powered by Rolls engines.
