French firm Safran has announced its intention to establish a Maintenance, Repair and Overhaul (MRO) facility in India to overhaul LEAP-1A and LEAP-1B engines in use by Indian and foreign commercial airlines. The announcement was made during the visit of a high-level delegation led by Safran Group CEO Olivier Andries, which called on Defence Minister Rajnath Singh.
The new facility will be established in Hyderabad, for which Safran will make a Foreign Direct Investment (FDI) of approximately INR 11,850 crore ($150 million). An estimated 500-600 highly skilled jobs are expected to result from the new MRO facility.
Andries also briefed Singh on their plan to inaugurate Safran Aircraft Engines and Safran Electrical & Power India Pvt Ltd, (SEPIPL) located in Hyderabad and Safran-HAL Aircraft Engines, which will be a joint venture in Bengaluru. He also outlined Safran’s long-term plan for the co-development and co-production of advanced jet engines and the transfer of technology to India during his meeting with Singh.
Singh welcomed Safran’s new facilities in Hyderabad and the joint venture in Bengaluru and said, “We are a big market. However, we are increasingly focused on making in India for addressing the needs in a competitive manner and supplying to friendly foreign countries. You can leverage all the competitive advantages India offers, including the cost advantages and availability of trained manpower.”
Safran Aircraft Engines’ Hyderabad facility will invest €36 million and produce parts and components for advanced aircraft engines, including rotating seals. The new facility will come up on a 10-acre land in the Hyderabad Special Economic Zone.
SEPIPL will produce rigid piping for aircraft and helicopter engines. The JV is expected to employ 160 highly skilled personnel.