French defence equipment major Safran announces MRO unit in Hyderabad, JV with HAL in Bengaluru

French aviation and defence equipment manufacturer Safran announced on Tuesday that it plans to set up an MRO (maintenance, repair and overhaul) unit in Hyderabad and partner with Hindustan Aeronautics Limited to develop India’s next-generation fighter aircraft.

A high-level delegation, led by Safran CEO Olivier Andries, met defence minister Rajnath Singh here to brief him about the plans.

The company—one of the world’s leading players in manufacturing aircraft engines—will establish an MRO facility in Hyderabad for the overhauling of the LEAP-1A and LEAP-1B engines being used by Indian and foreign commercial airlines. More than 300 such engines are in use in Indian commercial airplanes.

The $150 million MRO facility, with a capacity to overhaul over 250 engines per year in the beginning, will create 500-600 highly skilled jobs, a defence ministry spokesperson said in a statement.

The same facility could later be utilised to overhaul the engines of military aircraft such as Mirage-2000 and Rafale. India bought 36 Rafale aircraft for the Indian Air Force, while Rafale-M is in contention for the Indian Navy’s plan to procure two squadrons of carrier-based fighter planes.

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Safran will also create two subsidiaries—Safran Aircraft Engine and Safran Electrical and Power India Pvt Ltd—in Hyderabad, and partner with HAL to form a joint venture company Safran-HAL Aircraft Engines in Bengaluru. The joint venture company is to produce rigid piping for aircraft engines, including helicopter engines. The new JV is expected to hire 160 new highly skilled personnel.

With an investment of Euro 36 million, Safran Aircraft Engine will produce parts and components, including rotating seals, for advanced aircraft engines. It will be located on 10-acre land in the Hyderabad SEZ. Safran Electrical and Power India Pvt Ltd, on the other hand, will produce harnesses for civil and fighter jets.

Andries outlined his company’s long-term plan in co-development and co-production of advanced jet engines and transfer of technology as per existing policies of the Indian government.

The French defence major is negotiating with the Indian authorities on the supply of engines for the home grown fifth-generation Advanced Medium Combat Aircraft programme. It also offered to hand-hold the Defence Research and Development Organisation through the Kaveri engine programme.

“We are a big market. However, we are increasingly focused on making in India for addressing the needs in a competitive manner and supplying to friendly foreign countries,” Singh said.