Looks like India's Defence MRO sector is on a roll with the announcement of third Defence MRO in the country. Tata Advanced Systems and Hindustan Aeronautics are leading the race in establishing their Defence MRO facilities in India in joint venture with oversees OEMs while some global OEMs are planning their independent facilities in India.

India's Defence MRO market forecast

The Defence MRO market in India is rapidly evolving with newer players entering the fray. Oversees investments, rise of component sourcing from India, joint venture with global OEMs is sowing the seeds of a robust defence MRO evolution in the country. According to a study by Adani Aerospace & Defence, India's defence MRO market is expected to be worth $3 billion by 2031 to service India's fleet of 2,000+ aircraft. The defence MRO market will be driven by India's ageing fleet which includes certain aircraft classes such as the MiG-21s that are 30+ years old. The MRO spend for such old aircraft is significant due to low reliability & obsolescence of parts.

The BRDs (Base Repair Depots) operated by the Defence forces will need additional support to cater to the growth in requirements. For example, there are platforms such as the Mi-17 series helicopters & IL-76 aircraft that are reaching the end of their technical life and therefore, will require life extension programs and continuous maintenance.

While the Base Repair Depots (BRDs) of the Indian Air Force (IAF) can carry out certain aspects of the maintenance and overhaul, they are largely dependent on OEMs for spare parts and technical support. To address this concern, IAF recently invited EOIs from Indian MRO players to take up complete repair and overhaul of the Mi-17 platform through a JV with the OEM.

As the armed forces have thrown open the doors of a potential JV for defence MRO, the sector is flooded with announcements for establishing new Defence MRO facility in the country.

Lockheed Martin's contribution to India's defence ecosystem

In a major boost to the defence MRO sector, Lockheed Martin and Tata Advanced Systems inked a partnership to manufacture C-130J Super Hercules aircraft in India. The partnership also includes a Maintenance, Repair, and Overhaul (MRO) facility and other business opportunities.

This agreement provides a framework for collaboration on future potential business opportunities that include establishing a Maintenance, Repair and Overhaul (MRO) facility in India to support the Indian Air Force's (IAF) existing fleet of 12 C-130Js.

Lockheed Martin and Tata Advanced Systems inked a partnership to manufacture C-130J Super Hercules aircraft in India, including a Maintenance, Repair, and Overhaul (MRO) facility and other business opportunities

On this backdrop, the JV between the two companies are all set to establish its Defence MRO in Bengaluru, Karnataka to support C-130J global Hercules/Super-Hercules fleet of the Indian Air Force (IAF). This MRO aims to strength India's self-reliance in defence MRO and developing advanced capabilities to maintain the fighter jets.

The MRO is backed by Karnataka government's strong infrastructure, skilled workforce, and industry-friendly policies, such investments will support technological growth, job creation, and global collaborations in the aerospace sector.

In September 2024, the two companies had signed an MoU to deepen their collaboration on the C-130J Super Hercules tactical airlifter of the IAF. The agreement primarily focussed on two primary areas of cooperation: the establishment of an MRO and the potential expansion of manufacturing and assembly operations for the C-130J. However, the details of the new defence MRO were not disclosed six months back.

While Lockheed Martin is planning to expand its C-130J manufacturing and assembly in India, it is subject to approval from both the US and Indian governments and based on weather Lockheed Martin is awarded the MTA contract.

Lockheed Martin has provided the Indian Air Force (IAF) with the C-130J Super Hercules transport aircraft and F-21 fighter aircraft. The IAF operates a fleet of 12 C-130Js, making India one of 22 nations in the world opting Super Hercules for its tactical airlift missions. The IAF's C-130J fleet represents the first major military contract between the US and India in more than 40 years.

The IAF is expected to acquire up to 80 medium transport aircraft, to replace its aging fleet of AN-32 and IL-76 planes. The IAF has issued a request for information (RFI) for the MTA, and several aircraft have been proposed as contenders with Lockheed Martin's C-130J-30 Super Hercules, Embraer Defence and Security's C-390 Millennium and Airbus Defence and Space's A400M aircraft emerging as top contenders for mega contract.

Embraer's forward foot

Embraer is planning its Indian subsidiary in New Delhi by June 2025 (Q2) in sync with Embraer's efforts in teaming up with its Indian partner Mahindra Defence, in its offer of the C-390 Millennium transport aircraft for Indian Air Force (IAF).

The Indian Air Force (IAF) is considering the Embraer's C-390 Millennium as a Multi-Role Transport Aircraft (MTA) to meet its need for versatile and high-performance aircraft. The C-390's capabilities align well with the IAF's operational requirements. It is said that IAF plans to replace its ageing Russian-origin Antonov AN-32 and Ilyushin IL-76 fleet with the new generation aircraft.

Bosco da Costa Junior, President & CEO, Embraer Defense & Security, stated that Embraer is planning to establish India as a regional hub for tactical transport aircraft to meet the demand. "Embraer plans to assemble and even export C-390s, if Embraer gains the contract for its Medium Transport Aircraft (MTA) requirement," added Costa Junior.

Going further da Costa said that Embraer's proposal for MTA is not just about local assembly, but a broader collaboration including training, MRO, technology transfer and R&D. "He said Embraer's proposal would help India support its self-reliance in defence and strengthen the Indian defence industry, reduce defence imports and help industry to export."

Sankalp Shrivastava, Head of Defence, Embraer India further added: "Localisation was a key aspect of Embraer's C-390 offer for India."

HAL plans Defence MRO with Collins Aerospace

Hindustan Aeronautics Limited (HAL) has signed a strategic agreement with Collins Aerospace, to establish a defence MRO facility at HAL's Accessories Complex in Lucknow. This initiative is expected to significantly reduce turnaround time (TAT) for repairs, bolster self-reliance in defence maintenance, and improve overall fleet availability.

The facility will enhance the operational readiness of India's indigenous Light Combat Aircraft (LCA) Tejas Mk1 by ensuring efficient repair and overhaul of its electrical power generation systems. As per the agreement, HAL will service Collins aerospace integrated drive generators (IDGs) and generator control units (GCUs) which power select Indian Air Force (IAF) fighter jets.

"The new MRO facility builds on our long-standing partnership with HAL and underscores our commitment to the long-term sustainment of India's warfighter fleet," said Ryan Hudson, Vice President of Aftermarket, Power & Controls at Collins Aerospace.

Hindustan Aeronautics Limited (HAL) has signed a strategic agreement with Collins Aerospace to establish a defence MRO facility at HAL's Accessories Complex in Lucknow, significantly reducing turnaround time for repairs and bolstering self-reliance in defence maintenance

"This facility will not only enhance self-reliance but also enable HAL to provide better customer support for the LCA fleet. Additionally, it has the technical capability to support future requirements for new platforms," said Dr D.K. Sunil, Chairman & MD, HAL.

Apart from Collins, HAL has also partnered with SAAB to collaborate on the Electronic Warfare Laser Warning System-310 (LWS-310). The MoU includes a Maintenance Transfer of Technology (ToT), aligning with India's defence procurement procedure. Under this agreement, HAL will acquire the capability to manufacture LWS-310 domestically, with Saab providing infrastructure support, training programmes, and technical expertise. This initiative aims to ensure long-term support for the Indian armed forces while promoting local defence production.

The MoU reflects Saab's commitment to localisation and indigenisation in India by partnering with an Indian company. It ensures long-term security of supply in supporting the Indian Armed Forces.

In a major boost to Civil-Defence convergence Air India Engineering Services Limited (AIESL) has inked a deal with HAL to strengthen their MRO services for civil aircraft. This collaboration is set to strengthen India's aviation sector, with a focus on enhancing indigenous MRO capabilities and driving investment in advanced technologies.

Together, the companies aim to offer a wider range of MRO services for both domestic and international markets, focusing on improved efficiency, reduced operational costs, and the promotion of innovation in engineering and research.

Dassault Aviation MRO

Dassault Aviation of France has announced the incorporation of a subsidiary company in India dedicated exclusively for MRO of its military activities, Dassault Aviation MRO India (DAMROI), based in Noida, Uttar Pradesh. This comes on the backdrop of Dassault Aviation's discussions with Indian Navy for 26 Rafale-M, the marine variant. Indian Air Force (IAF) operates three squadrons of the Mirage 2000 fighters and 36 Rafale fighter jets.

Dassault Aviation has announced the incorporation of a subsidiary company in India dedicated exclusively for MRO of its military activities, Dassault Aviation MRO India (DAMROI), based in Noida, Uttar Pradesh

Created under the "Atmanirbhar Bharat" policy to contribute to India's self-reliance and promote indigenous value-added services, DAMROI will benefit from Dassault Aviation's technological expertise and offer new opportunities for cooperation and collaboration with the aim of becoming a key player in participating to a full-fledged aero defence ecosystem in India.

Defence Component Manufacturing

The aerospace business of Godrej & Boyce has inked an MoU with the Aeronautical Development Agency (ADA) for flight control actuators for India's Advanced Medium Combat Aircraft (AMCA) programme. The initial pacts are aimed at supporting national programmes backed by the Government of India. Under the MoU with ADA, Godrej Enterprises Group will undertake comprehensive development of Flight Control Actuators for AMCA, including precision manufacturing, procurement of aerospace-grade raw materials, assembly and testing, and development of test rigs for qualification tests.

Safran Electronics & Defense, France inked a deal with Bharat Electronics Limited (BEL) to create a joint venture for the manufacturing, customisation, sale and maintenance of HAMMER (Highly Agile Modular Munition Extended Range) Smart Precision Guided Air-to-Ground Weapon in India. This is viewed as a major step toward strengthening India's capabilities in defence manufacturing and achieving self-reliance in advanced weapon systems. It will localise HAMMER production, enable development of future variants and support the Government of India's Atmanirbhar Bharat' initiative by reducing import dependence.

Safran Electronics & Defense, France inked a deal with Bharat Electronics Limited (BEL) to create a joint venture for the manufacturing, customisation, sale, and maintenance of HAMMER Smart Precision Guided Air-to-Ground Weapon in India, strengthening India's capabilities in defence manufacturing

The collaboration will facilitate technology transfer, create opportunities for Indian industries, especially SMEs and position India as a global hub for smart ammunitions production.