Outlook Business | Smart Enterprise - Srinivasan Dwarakanath - video Dailymotion

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Srinivasan Dwarakanath, MD, Airbus India speaks to Outlook Business on the ocassion of Smart Enterprise 2016.   #SrinivasanDwarakanath #SmartEnterprise #Business #OutlookBusiness #OutlookMagazine #OutlookGroup

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00:00 India is a strategic country for Airbus, not only because of its market size, but also

00:08 to the access to skills and resources.

00:11 Make in India is at the heart of Airbus and Airbus Group strategy in the country.

00:16 We are committed to developing aerospace and aviation ecosystem in the country.

00:23 Airbus strategy is based on the following four pillars, engineering, customer services,

00:31 aerospace supplier partnerships, R&T and innovation.

00:34 Today we have about 400 engineers who work for us in Bangalore on core activities.

00:40 We also have more than 45 suppliers in the country, SMEs and MSMEs.

00:48 We have created more than 6,000 jobs in the country across the supply chain.

00:54 We have 70% market share in the country and I am proud to say that every aircraft which

01:00 comes out of the Airbus assembly line has something made in the country.

01:04 If you look at our engineering center in Bangalore, the engineers there work on core activities.

01:13 They are really important for the design of high performance aircraft such as the A380,

01:19 A350 and A320neo.

01:21 And the engineers here are plugged globally into the engineering talent pool of the whole

01:27 of Airbus.

01:28 We also have something called the Emerging Technologies and Concepts Group within that

01:32 engineering center and this group focuses on disruptive innovation, whether that innovation

01:39 is coming from within the industry or from outside the industry.

01:43 They try and bring that so that innovative ideas are brought into the product design.

01:49 And this Emerging Technologies and Concepts Group is based in Toulouse, Hamburg and Bangalore

01:56 and I am proud to say for the whole of Airbus this is led from Bangalore.

01:59 Apart from that we also have started recently something called Airbus Bislab.

02:05 What is this Bislab?

02:06 Bislab is an aerospace accelerator and this helps to bring ideas to business.

02:12 We have entrepreneurs coming from outside and also entrepreneurs coming from within

02:17 Airbus who work together on innovative ideas and they try and bring those ideas to fruition

02:24 in a matter of six months.

02:26 Airbus sourcing strategy in India is to work across the product life cycle.

02:31 We work with companies on engineering activities, manufacturing activities as well as customer

02:36 services.

02:37 On engineering, apart from our own engineering center, we have two dedicated development

02:43 centers, one with CADIS for fuselage activities and one with Quest for engineering and pylon

02:51 activities as well.

02:52 So approximately 2,000 people work across the engineering supply chain for us.

02:58 If you look at manufacturing, we work predominantly in aerostructures but in other areas as well

03:04 and today more than about 4,000 people work across the supply chain on the manufacturing

03:10 activities for us.

03:11 Overall, about 45 plus companies are working across the engineering and manufacturing supply

03:17 chain.

03:18 But when it comes to customer services, we do focus on two areas mainly.

03:23 One is technical publications.

03:24 There are two or three companies who work with us on this area and last but not least,

03:29 we also work on maintenance, repair and overhaul as well with the help of the supply chain.

03:35 Through our supply chain, Indian companies work across different Airbus aircraft programs,

03:41 be it the A380, the A350 or the A320neo.

03:46 If you look at aerospace industry, aerospace industry is predominantly a skill-based industry

03:54 and normally it takes about 20 to 25 years to develop aerospace supply chain in any part

04:01 of this world as well.

04:02 So in India, it will take some time as well.

04:04 In the last 10 years, private companies have come in and predominantly SMEs and MSMEs who

04:11 have come in to work in aerospace industry and they are the real force behind the industry

04:17 and they are the ones we need to count for innovation as well.

04:21 India is a focus country for us in Asia apart from China and Korea.

04:27 What we do normally is to really bring in our European tier one companies to partner

04:32 with Indian companies.

04:33 Why?

04:34 80% of what we sell, we buy.

04:37 At Airbus, we are an integrator.

04:39 So we have big tier one companies and what we did in the last few years is to really

04:44 bring them here and then bring the Indian companies and we did something called the

04:48 matchmaking like a speed dating.

04:50 You know, it helps the European tier one companies to look at Indian companies quickly and if

04:56 they like to partner with them, then they take that further and that has really helped

05:00 to grow the Indian supply chain for us.

05:03 So some of the Indian MSMEs or SMEs, they start as a tier three supplier for us.

05:08 That means you have tier ones, the ones who work directly with Airbus and then you have

05:12 tier twos who work with the tier ones and then the tier threes who work with tier twos

05:16 as well.

05:17 So some of them start as tier threes and they have graduated to tier two, example, SimTools

05:23 and some of them started as tier two companies and then graduated as tier one to work directly

05:29 with Airbus, examples, Dynamatics and Acres.

05:33 And some of these companies, when they wanted to start with us, they just didn't know where

05:37 to start.

05:38 They came in with PowerPoint slides.

05:40 We were really hand-holding them right from the stage where they had the PowerPoint slides

05:45 to set up a factory and then start manufacturing for Airbus products, either as tier one or

05:52 as tier two.

05:53 That's how I think we have been growing the aerospace supply chain in the country.

05:57 If you look at automotive industry, 20, 25 years ago, we just started on this journey

06:03 and today we are proud that India has become a manufacturing hub for the automotive industry.

06:09 And like that, I strongly believe that India can become a manufacturing hub for the aerospace

06:15 industry.

06:16 The Make in India initiative has given us all a shared vision to follow.

06:23 Even though Airbus has been working or making in India for a long time, this Make in India

06:30 vision of the Prime Minister has put this at the heart of our strategy.

06:35 We are excited about our partnership with India and in this context, I am pleased to

06:41 attend the Outlook Business Smart Enterprise event.

06:45 See you there.

06:47 (upbeat music)

Outlook Business | Smart Enterprise - Srinivasan Dwarakanath

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