B'luru invites MRO biz to set up shop

B'luru invites MRO biz to set up shop
Bengaluru has set the stage for enthusiastic aerospace and defence companies to come set up shop here, especially in the realm of airline MRO (Maintenance, Repair), which is fast emerging as a major segment, and India is placing itself as a major hub.

MRO involves fixing any sort of mechanical, plumbing or electrical device that breaks down. In terms of the airline industry, it is a major draw since it ensures planes are safely flying around the world.

Addressing delegates at the IndiaMRO Aerospace and Defence Conference 2015, Hindustan Aeronautics (HAL) CEO (Bangalore Complex) Kaveri Ranganathan said, “In terms of MROs, most countries fly a mix of aircraft types. Even India’s neighbouring countries have a fragmented fleet. Hence, due to proximity to India, the latter may be transformed as an MRO hub for the region.”

Bengaluru-based HAL heralded India’s rise in the aviation and aerospace markets. The organisation, which began as a repair centre in 1940, today has robust aircraft repair and maintenance capabilities, and wishes to partner with other companies. Ranganathan said that with its defence experience, HAL now eyes the civil space too.

According to Vandita Sharma, Principal Secretary (Karnataka Department of Infrastructure Development), “Bengaluru needs to be hub for aerospace, and MRO is an important part of it. With the Kempegowda International Airport growing phenomenally, we must keep pace to provide fleet and maintenance facilities.”

Karnataka Infrastructure Development Minister R Roshan Baig said that since Karnataka is the first state with an aviation policy, it is opportune for companies to invest here. “Bengaluru and Karnataka have a sound ecosystem for investment in aerospace. Even MSMEs and SMEs have been supplying to the large companies present here. Around 1,000 acres of the aerospace SEZ at Devanahalli have been devoted to expansion by companies, including MRO outsourcing.”   

According to a note by research firm KPMG, India’s current civilian MRO market is estimated to be around $700 million. The market is expected to grow at eight per cent CAGR over the next 10 years to reach $1.4 billion by 2025. Currently, 90 per cent of the MRO spend by Indian carriers is outside of India.

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