Aatmanirbhar Bharat: The importance of building a global supply chain network in India

“Boeing is working with Indian suppliers and partners to make sure the country’s supply chain is strong now and even healthier in the future.”

— Salil Gupte, President, Boeing India

Hyderabad, January 18. Having a robust supply chain in India is mutually beneficial for Boeing and India. A strong supply chain helps Boeing support the growth of India’s manufacturing capabilities in aerospace and defence, empowering suppliers to compete on a global scale. It is crucial to continue building on this success, as growing a robust and diversified supply chain across strong manufacturing and engineering bases such as India is key to building a resilient global supply chain. India has indeed become the largest site for Boeing outside of the United States in terms of workforce.

Maintaining a strong supply chain encourages cooperation and builds an environment conducive to the exchange of knowledge and the development of new technologies. It is imperative to invest in supplier development activities since they improve the competencies and aptitudes of Indian suppliers and bring them into compliance with international standards.

Boeing is by far the largest foreign OEM in terms of sourcing from India, with over $1 billion worth of goods and services exported annually through its network of 300+ supplier partners, including over 25 percent Micro, Small and Medium Enterprises (MSMEs) that are an integral part of our global supply base. These Indian companies manufacture and export systems and components for Boeing’s advanced products worldwide. The joint venture with Tata Advanced Systems Ltd. (TASL), Tata Boeing Aerospace Limited (TBAL), showcases Boeing’s commitment to Make in India. TBAL manufactures 737 vertical fins, aero-structures for Boeing’s AH-64 Apache helicopter, with over 90% of the parts sourced from over 100 MSME suppliers in India. More than 250 fuselages have been delivered by TBAL, including for the six on order with the Indian Army. Boeing’s long-term plans and commitments demonstrate its dedication to supporting India’s manufacturing capabilities in the aerospace and defence sectors.

Boeing enables its suppliers to compete globally in aerospace and defence sectors: Boeing has put in place a strategy to empower its suppliers in the aerospace and defense industries worldwide. Utilizing technological platforms to create collaborative spaces has made effective information exchange and real-time communication possible. Initiatives to share knowledge further improve the supply chain’s overall capabilities.

A few examples where collaboration between Boeing and Indian companies has strengthened them as global supply partners:

• Tata Advanced Systems Limited (TASL): manufactures complex floor beams for the 787-8, 9 and 10 Dreamliners. Boeing has awarded a follow-on contract to TASL, which has already delivered more than 33,000 beams to date.
• Mahindra Aerostructures Pvt Ltd (MASPL): awarded a contract for manufacturing and supply of the Boeing 737 inlet outer barrel components and subassemblies at the state-of-the-art MASPL facility in Narsapura.
• Bharat Forge: manufactures a range of titanium-forged parts such as flap-track forgings for the Next-Generation 737 and forgings for the 737 MAX and the 777X.
• Hyderabad-based Cyient: supports critical design-engineering projects for Boeing airplanes, including 787 design and stress support.
• Motherson Sumi Systems Limited (MSSL): awarded a contract to manufacture and supply aftermarket moulded polymer parts for commercial airplane interiors.
• SASMOS HET Technologies: has signed a contract to manufacture panels, shelf assemblies and electrical wiring systems for Boeing 767 and 767-2C airplanes.
• Tata Aerospace Limited (TASL) and Dynamatic Technologies (DTL) have developed strong capabilities over time. TASL was honored with a Boeing Supplier of Year Award in 2022, while DTL won a Boeing Supplier of the Year award in 2023.

Boeing partnerships with Indian suppliers and the Indian Government help contribute to building the country’s aerospace and defence manufacturing ecosystem with several successful projects and partnerships:

• The Accelerated Apprenticeship Program works to increase employment opportunities for aircraft maintenance engineers. Collaborating with AI Engineering Services Limited and the Ministry of Civil Aviation, Boeing established a high-tech training center in Mumbai that offers customized aviation curriculum developed by Boeing experts. Numerous program graduates are now working with Indian airlines.
• In 2022, Boeing collaborated with Indira Gandhi Rashtriya Uran Akademi (IGRUA), a premier flight training organization under the Indian Ministry of Civil Aviation (MoCA), to enhance safety and quality in early career flight training.
• Boeing has partnered with Air India, Tata, and MSMEs like Rossell Techsys, SASMOS, Jaivel and industrial partners like Indo MIM, Lakshmi Machine Works, Air Works, and Wipro, to offer training opportunities to pilots, aircraft maintenance engineers, technicians, and frontline factory workers throughout India. More than 4,000 workers have benefited from these initiatives.

These initiatives have benefited both Boeing and its Indian partners. They have led to optimized production processes, shared resources, and financial gains for both entities. Ultimately, the collaborative supply chain approach has contributed to sustainable growth, market competitiveness, and strengthened ties between Boeing and its Indian counterparts.

Boeing has made a significant impact on India’s manufacturing capabilities in a number of areas:

• Advanced aerostructures manufacturing: Boeing has played a pivotal role in advancing India’s capabilities in manufacturing complex aerostructures, contributing to the production of critical components for Boeing’s global fleet.
• Precision engineering: Through collaborations and knowledge transfer, Boeing has influenced the development of precision aerospace engineering capabilities in India, elevating the country’s proficiency in manufacturing high-precision aerospace components.
• Composites technology: Boeing’s initiatives have significantly impacted India’s expertise in composites technology, fostering the production of lightweight and durable materials crucial for modern aerospace applications.
• Digital manufacturing: Boeing’s emphasis on digital transformation has influenced India’s adoption of advanced aerospace manufacturing technologies, optimizing production processes and contributing to increased efficiency in aerospace manufacturing.
• Skill development: Boeing’s collaborations with NGOs, educational institutions and training centers have made a substantial impact on developing a skilled workforce in India, addressing the specific needs of the aerospace and defence sector.
• Strategic defence partnerships: Boeing’s engagement in strategic defence partnerships has bolstered India’s defence manufacturing capabilities.
• Sustainable practices: Boeing’s commitment to sustainability has influenced the adoption of eco-friendly and socially responsible manufacturing practices in India, aligning the country’s aerospace industry with global environmental standards.
• Innovation ecosystem: Boeing has contributed to aerospace innovation in India, fostering collaboration among industry, academia and startups.
• Localized supply chain integration: Boeing’s efforts in integrating Indian suppliers into its global supply chain have not only supported local businesses but also strengthened India’s overall position in the aerospace manufacturing supply network.

Further, Boeing’s confidence in Indian manufacturers shows up in the list of programs they have recently been entrusted to work on, including key defence assets AH-64 Apache, Chinook, P-8 and F-15, as well as commercial programs 787, 737, 777X and 767.

Recent progress: Since the last WINGS show in 2022, Boeing has added more than 25 new suppliers to its network, with more than $2 billion in new contracts. These additions have further strengthened Boeing’s supply chain and expanded its network of Indian partners.

Boeing’s network of Indian suppliers offers several advantages These advantages include a skilled workforce across the IT, engineering, and R&D disciplines as well as increasing capability in manufacturing, cost-effectiveness, and a growing aerospace industry and regulatory alignment.

Boeing’s long-term plans for supply chain development and supporting India’s manufacturing capabilities include:

• Make in India: More than 60% of Boeing’s $1 billion sourcing from India, is manufacturing.
• Continuous collaboration: Boeing aims to foster joint ventures and technology transfer programs with Indian partners to enhance local manufacturing capabilities.
• Skill development: The company is dedicated to investing in skill development initiatives to ensure a steady pipeline of skilled aerospace professionals in India’s workforce.
• Growth of SMEs: Boeing nurtures the growth of small and medium enterprises within the supply chain, creating a robust ecosystem.
• Local sourcing: Boeing is committed to sourcing a significant portion of its components and materials locally, strengthening self-reliance in the Indian aerospace and defence sectors.
• Sustainable practices: The company aims to implement sustainable practices, aligning with global standards and promoting environmentally responsible manufacturing processes.