Jeh Aerospace’s baby steps become giant leaps: Dream a future growth in India for global market

By Sangeeta Saxena

New Delhi/London. 10 October 2024. Out of the in-numerable youngsters who were motivated by Ratan Tata as a human being and inspired by his professional journey, two young aerospace professionals from Hyderabad who were working for Tata Advanced Systems, decided to write their story of  entrepreneurship and so strong was the influence that they named their venture Jeh Aerospace.

As the global aerospace industry grapples with supply chain constraints and a growing demand for high-quality components, India is emerging as a critical player in solving these challenges. With its robust engineering talent, improving infrastructure, and competitive cost structure, India holds immense potential as a manufacturing hub for Tier 1 and Tier 2 companies in aerospace globally. In an exclusive interview with Aviation & Defence Universe(ADU), the two Co-Founders of Jeh Aerospace, Venkatesh Mudragalla and Vishal Sanghavi discussed their strategic approach to unlocking India’s potential, their role in bridging the U.S.-India manufacturing gap, and the steps they are taking to contributing towards building a world-class aerospace manufacturing ecosystem.

The aerospace and defense sectors in the U.S. are currently facing significant supply chain constraints, particularly among Tier 1 and Tier 2 suppliers who contribute up to 70% of the industry’s value. However, many of these companies have yet to tap into India’s manufacturing capabilities. The company, with its vast expertise and strong connections in the aerospace sector, is focused on making India a go-to destination for these manufacturers.

“We’ve already unlocked India’s potential for major OEMs like Boeing, Airbus, GE, and Lockheed Martin. Our next target is Tier 1 and Tier 2 companies, particularly in the U.S.-India corridor, where relations have never been stronger. India is well-positioned as a ‘friend-shoring’ destination, and we are ready to provide solutions to these companies, ” informed Vishal Sanghvi, who is the partner based in USA.

In a candid conversation, aerospace industry professionals share their vision for bridging the gap between India’s burgeoning manufacturing capabilities and the growing demand from Tier 1 and Tier 2 companies in the U.S. and Europe. They talk about unlocking India’s potential in aerospace, the challenges of working in a complex and highly regulated industry, and the exciting opportunities that lie ahead in the U.S.-India aerospace corridor.

What brings him to the U.S. and what is his key focus there, were the queries which  stemmed  from the conversation. “ However, most of these firms don’t know much about India’s aerospace capabilities, unlike in the IT sector, where India’s strengths are well known. So, we need to be visible and build relationships to gain their trust. Make in India & Aatmanirbhar Bharat are known as governmental policies but the level of Made in India needs to be told to the world. This is was the aim to have one of us settling in USA and managing from there, ” Vishal added.

The company’s current focus is on manufacturing aero engine and aero structure components. One of their key clients is GS Precision, a large Tier 1 supplier for GE, Pratt & Whitney, and SpaceX. The company has started manufacturing for them in India, marking a significant milestone in their growth trajectory.

“In addition to GS Precision, we’re also in talks with other aero engine and aero structure companies who are interested in setting up manufacturing operations in India but are hesitant to navigate the complexities of the Indian market. We’re the ones who can bridge that gap and make the transition seamless for them,” stated Vishal.

One of the critical challenges the company faces is building a skilled workforce for the aerospace industry, where quality and precision are paramount. Currently, the team is actively recruiting young graduates and diploma holders, putting them through rigorous training programs.

“Training is key. While India has ramped up manufacturing across sectors, the aerospace industry is still developing a large pool of specialized talent. We’re not only training our workforce but also planning to build an in-house training center where experienced professionals will pass on their knowledge,” reiterated Venkatesh Mudragalla, the partner who manages the Indian front of the venture from Hyderabad. The company has developed a “train-the-trainer” program, ensuring that expertise is passed down efficiently. Both co-founders have over a decade of experience in the aerospace industry and are directly involved in mentoring and building the teams.

With machines arriving from the U.S., Japan, and Europe, the company rapidly set up its manufacturing facility and started production, a testament to the speed at which they are operating. “We currently have a team of 35, but we plan to expand to 70 or even 100 by the end of the year. We’re moving quickly, but we refuse to compromise on quality. In aerospace, people’s lives depend on it,” Venkatesh remarked.

The company’s approach to supply chain management is both global and local. While they are building in-house capabilities, they also work with a network of suppliers across India, including Hyderabad, Bangalore, Pune, and Andhra Pradesh. The aim is to leverage the capabilities of these suppliers while helping them improve and meet the rigorous standards of the aerospace industry.

“Our raw materials mainly come from the U.S. and Europe, but we are working closely with Indian suppliers to build an ecosystem that supports the entire aerospace manufacturing process. This collaborative approach is key to scaling up efficiently,” he said.

Financially, the company has strong backing from General Catalyst, a major venture capital firm and prominent angel investors like former Boeing India Head Pratyush Kumar, former Airbus India CEO Dwarkanath Srinivasan and Sunil Velagapudi former Chief Engineer of Boeing India. The company prides itself on having solid unit economics, ensuring that each business venture is profitable from the start. “We’re not burning money. Every contract we take on is profitable, which not only covers operational expenses but also allows us to reinvest in our growth,” Vishal stated.

Looking ahead, the company plans to expand its focus beyond metallic parts and assemblies, eventually branching into other areas of aerospace manufacturing. With a strong foundation in place, the company is poised to become a major player in the U.S.-India aerospace corridor. And here Venkatesh reiterated that the support rendered by Telangana Government in inception, setting up the facility and smooth functioning has been very strong and the ease of doing business extremely good.

As India rises as a manufacturing powerhouse in the aerospace industry, this company is leading the charge by bridging the gap between U.S. and Indian markets. With a focus on unlocking India’s potential for Tier 1 and Tier 2 companies, they are not only bringing world-class manufacturing to India but also building a skilled workforce that will drive the industry forward. Their strategic approach, financial prudence, and commitment to quality are positioning them as key players in the aerospace manufacturing space, offering a reliable solution for global companies looking to tap into India’s growing capabilities.

Speaking with the Jeh Aerospace duo one concludes that the biggest differentiator is their ability to unlock India’s aerospace potential for companies abroad. They made it easy for these firms to enter the Indian market without facing the typical challenges. With deep industry experience and a focus on building a skilled team and top-notch infrastructure, they were able to deliver quality at a pace rarely seen in the industry.