Navigating Challenges and Opportunities: The Future of India’s MRO Sector

• SWOT Analysis of the MRO sector at Aviation India 2024 expected

By Sangeeta Saxena

New Delhi. 10 June 2024. From take off to touchdown, the critical role of MRO in Indian Aviation has always been a consensus but unlocking potential challenges and growth in India’s aviation MRO sector, forever a topic of debate.

An industry where abbreviations rule in roost one of them which is on the lips maximum is MRO. The glitter and glamour of the cockpit makes the pilot a celebrity but he also knows that take off can be optional but landing is mandatory. And that happens only when the Maintenance, Repair, & Overhaul of the aircraft is so perfect that  soft landing is always guaranteed. Safety, reliability and efficiency are the key words which at the end of the flight make the aircraft airworthy.

The Indian aviation Maintenance, Repair, and Overhaul (MRO) industry stands at the cusp of significant transformation, propelled by the nation’s expanding aviation market and strategic policy interventions. With India’s emergence as one of the fastest-growing aviation markets globally, the demand for MRO services has surged, creating a robust foundation for the industry’s future growth. The MRO sector encompasses a broad range of activities, including the maintenance, repair, and overhaul of aircraft, engines, and components, ensuring operational safety and efficiency.

India’s geographical advantage, coupled with its cost-competitive labour force and a burgeoning pool of skilled aerospace engineers, positions the country as a potential global MRO hub. Has the Indian government recognized this potential?  Has Indian aviation sector as a whole got together to create efforts designed to reduce the reliance on overseas MRO services?

The market dynamics are further influenced by the rapid fleet expansion of Indian airlines, driven by increasing passenger traffic and the induction of new aircraft. This expansion necessitates a corresponding growth in domestic MRO capabilities to cater to the rising maintenance needs. On the face of it the entry of global MRO players and the establishment of joint ventures with Indian companies are also fostering technology transfer and best practices, elevating the industry’s standards. But a deep look inside reflects a fact that despite the promising outlook, the Indian MRO industry faces several challenges, including regulatory hurdles, infrastructure bottlenecks, and the need for continuous skill development. Addressing these challenges through cohesive efforts from industry stakeholders and the government will be crucial in realizing the sector’s full potential.

So seemingly it looks as if the Indian MRO industry is on a transformative path, with significant opportunities for growth and development. By leveraging its inherent advantages and addressing existing challenges, India can position itself as a key player in the global MRO market, contributing to the sustainability and efficiency of the aviation sector. But the fact remains that pain points for the industry are many , the wishlist of the industry is long and irrespective of whose government at the centre MRO industry gets meted a step motherly treatment always.  This is a journalistic opinion and as the fourth estate performing the role of the watch dog of the society, some observations need to be highlighted.

• Airport Authority Rentals are too high for MROs. Renewals are even higher.
• GST applied on aircraft parts needs to be implemented correctly and not by interpretation of different agencies.
• Customs Duty on imports of spares/parts for military aircraft by private sector should be on par with the DPSUs when they are the MRO.
• Test Facilities for MRO are extremely expensive. Government of India has only funded these for companies like AIESL and HAL. Private qualifying companies must also get the same level of testing facilities funding as PSU’s & DPSU’s. If not then these facilities should be allowed to be used by the private sector MROs.
• And why OEMs should be MROs?

This list is only indicative and not exhaustive. Count down to Aviation India Summit  and Exhibition  2024 has begun and a special session on the MRO industry will brainstorm the challenges faced by the industry both in India and overseas. And quite a possibility that the journalistic eye is jaundiced and what is good in the Indian MRO industry also comes out of the brainstorming. SWOT Analysis of the MRO industry will definitely attract an audience which will listen in rapt attention to the men who matter on the stage.

Lets get to know the speakers.

Anand Bhaskar

Chief Executive Officer, Air Works

Anand Bhaskar is the managing director (MD) and chief executive officer (CEO) of the Air Works Group.

Anand joined Air Works as its CFO in 2010 and was instrumental in making it India’s only multinational MRO by architecting the company’s global expansion and its diversification into new businesses such as Aircraft Interiors & Finishing, Avionics, Lessor Engineering Services, and Training etc.

Subsequently, as the Business Head of the Airline MRO division in 2014, he ensured the growth and profitability of the business within four years, with a footprint spanning 28 locations across the country.

Bharat Malkani

Chairman, Max Aerospace

Bharat Malkani is a dynamic personality who has done significant work in the field of MRO in India & abroad. Having more than 30 years of experience in engineering works, he has devoted majority of his effort in improving the Indian MRO industry.

He has set up advance MRO workshop and equipment testing facility in Mumbai. He is instrumental getting his company licenses, approvals, accreditations from multiple government & non-government organizations in India and abroad. He has deep personal relationships with various European and American aircraft manufacturers & components suppliers.

He is President of the MRO Association of India and does advisory to the Ministry of Civil Aviation.

Ziad Al-Hazmi

CEO, Lufthansa Technik Middle East

After several appointments in the aviation Industry, including at Sharjah International Airport and MTU Friedrichshafen, Mr. Al-Hazmi joined Lufthansa Technik in 1999, initially working as the company’s representative with Saudi Arabian Airlines Jeddah. From 2005 to 2009, he held the post of Senior Regional Manager Sales with responsibilities for Saudi Arabia and Bahrain. In this capacity, he played an important part in setting up and expanding the leading role of Lufthansa Technik in the Middle East Region. In January 2010, he assumed the position of General Manager Gulf. He was appointed CEO of Lufthansa Technik Middle East Services now Lufthansa Technik Middle East FZE in October 2011.

Abhishek Rastradhyaksha

Head of Business Development – GMR Aero Technic

Abhishek is a Sales and Business Development professional with rich Aviation MRO Business experience with Lufthansa Technik and Rolls- Royce. He has extensively worked in airlines in the Indian Subcontinent region.His experience includes  Customer Manager with Rolls-Royce, Manager Sales, Aircraft Component Services, Asia Pacific Manager Sales, Aircraft Component Services, Asia Pacific with Lufthansa Technik. Responsible for Customer Acquisition, Targeted Sales/Revenue, P & L, Market Strategy in Indian sub-continent and South East Asia Pacific. Responsible for Customer Acquisition, Targeted Sales/Revenue, P & L, Market Strategy in Indian sub-continent and South East Asia Pacific. Manager Product Sales, Single Component Maintenance, South East Asia PacificManager Product Sales, Single Component Maintenance, South East Asia Pacific,  Customer Acquisition, Targeted Sales/Revenue in Indian sub-continent, P & L, Market Strategy…Responsible for Customer Acquisition, Targeted Sales/Revenue in Indian sub-continent, P & L, Market Strategy.. Product Sales and Account Manager, India Sub-continent, SCM Product Product Sales and Account Manager, India Sub-continent, SCM Product and lots more.

Mangalam Pandey (Moderator)

Lead -Technical Services, Engineering, Air India

Mangalam is a passionate Aviation and Aerospace enthusiast and was fortunate to be part of the TATA Group’s Aviation, Aerospace and Defense portfolio for more than a decade and associated with most Global OEMs. Currently he leads multiple function and associated with business transformation initiative at Air India- Engineering. In his previous role he was a Project Manager and had led the establishment of Approved Maintenance Organization (MRO) & Flying operations at Nagarjuna Sagar airport, Andhra Pradesh.

During 1.5 decades of his exposure to the industry, he has pursued excellence in the field of Aerostructures manufacturing & Aircraft operations and demonstrated successful execution of many green field projects & joint ventures establishment.

 

The Indian Maintenance, Repair, and Overhaul (MRO) industry is at a critical juncture, poised to leverage the burgeoning growth of the nation’s aviation sector. Despite significant potential, the industry faces several gaps that hinder its path to becoming a global competitor. These gaps, ranging from regulatory challenges and high operational costs to infrastructure constraints and skill shortages, need strategic bridging to unlock the industry’s full potential.

As one of the fastest-growing aviation markets globally, India presents a fertile ground for MRO expansion. The country’s geographical advantage, cost-competitive labor force, and an increasing pool of skilled aerospace engineers provide a strong foundation. However, for India to emerge as a global MRO hub, it must address critical issues that currently impede progress.

The upcoming Aviation India Summit and Exhibition 2024 will serve as a pivotal platform to address these challenges. Industry leaders and stakeholders will brainstorm solutions, share best practices, and discuss the strategic interventions required to bridge these gaps. A comprehensive SWOT analysis will highlight strengths, weaknesses, opportunities, and threats, setting the stage for a cohesive effort towards achieving global competitiveness.

By addressing these pain points through collaborative efforts between the government and industry stakeholders, India can position itself as a key player in the global MRO market. This transformation will not only enhance the safety, reliability, and efficiency of the aviation sector but also contribute significantly to the economy, generating employment and fostering technological advancements. The road to global competitiveness is challenging, but with concerted efforts, the Indian MRO industry can soar to new heights.

All pictures are courtesy the MROs