MRO Market - India July 2009
Executive Summary SAMPLE  Market Drivers & Challenges Government policies & initiatives Competition <ul><ul><li>Airlines m...
<ul><li>Market Overview </li></ul><ul><li>Drivers & Challenges </li></ul><ul><li>Government Policies & Initiatives </li></...
MRO market in India is at nascent stage with the potential to become MRO hub  <ul><li>MRO market estimated to reach USD X ...
Drivers & Challenges 35 Growth in Air Traffic Drivers Manpower  Cost Arbitrage Increasing Fleet Size Government Initiative...
Indian MRO space is emerging as a competitive space with large investments from many foreign players <ul><li>MRO space in ...
Joint-Ventures (1/3) SAMPLE  Source: <ul><li>Date of JV: Feb 2009 </li></ul><ul><li>GMR Hyderabad International Airport Lt...
Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across...
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MRO Market - India - Sample

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India is emerging as the global hub for MRO outsourcing in the APAC region. Majority of the international MRO hubs are running at overcapacity and are looking to source the work to India considering the low-cost factor. Currently, the MRO market in India is at a nascent stage but witnessing rapid growth. Huge investments have been planned in this space with many joint-ventures between domestic and international players.

The report provides a detailed market overview covering the market size and growth, market share by activities, activity based outsourcing in India. An analysis of drivers explain factors contributing to the growth of MRO market based on manpower cost arbitrage, increasing air traffic and fleet size and government initiatives. The key challenges discussed are high tax regime and regulatory limitations and shortage of land and skilled manpower.

The section on government policies and initiatives explains the FDI policy, custom duties & taxes and state-level initiatives for the development of MRO facilities in India. Competitive section provides the current maintenance relationships and identifies major MRO players in India. The report also provides a comprehensive list of the joint-ventures and key developments in the MRO space.

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MRO Market - India - Sample

  1. 1. MRO Market - India July 2009
  2. 2. Executive Summary SAMPLE Market Drivers & Challenges Government policies & initiatives Competition <ul><ul><li>Airlines maintenance, repair and overhaul (MRO) market valued at USD X mn in 2008; Expected to reach USD Y bn by 2010 </li></ul></ul><ul><ul><li>India is emerging as the global MRO hub due to its low-cost and favorable geographical location </li></ul></ul><ul><ul><li>Domestic carriers source MRO services from service providers in Singapore and Europe </li></ul></ul><ul><ul><ul><li>Only line maintenance and some other basic checks are done in India </li></ul></ul></ul><ul><ul><li>Drivers: </li></ul></ul><ul><ul><ul><li>Growth in air traffic </li></ul></ul></ul><ul><ul><ul><li>Manpower cost arbitrage </li></ul></ul></ul><ul><ul><ul><li>Increasing fleet size </li></ul></ul></ul><ul><ul><ul><li>Government Initiatives </li></ul></ul></ul><ul><ul><li>Challenges: </li></ul></ul><ul><ul><ul><li>High tax regime and regulatory limitations </li></ul></ul></ul><ul><ul><ul><li>Shortage of land and skilled manpower </li></ul></ul></ul><ul><ul><li>Defense Procurement Procedure 2008 provides opportunities for public-private partnerships </li></ul></ul><ul><ul><li>100% FDI is allowed for greenfield MRO projects through automatic route </li></ul></ul><ul><ul><li>Imported spare parts attract high customs duty </li></ul></ul><ul><ul><li>State-level initiatives by various state governments to encourage investors to set up MRO centers </li></ul></ul><ul><ul><li>MRO market is in a nascent stage at present, but it is fast emerging as a competitive segment </li></ul></ul><ul><ul><li>Major domestic players include ABC, XYZ and UV Ltd </li></ul></ul><ul><ul><li>Foreign players like AA, BB and CC are some companies which have shown interested in setting up MRO centres in India </li></ul></ul>
  3. 3. <ul><li>Market Overview </li></ul><ul><li>Drivers & Challenges </li></ul><ul><li>Government Policies & Initiatives </li></ul><ul><li>Competition </li></ul><ul><li>Joint Ventures </li></ul><ul><li>Key Developments </li></ul>
  4. 4. MRO market in India is at nascent stage with the potential to become MRO hub <ul><li>MRO market estimated to reach USD X bn 2010 </li></ul><ul><li>Many new players, both domestic and international, are entering this fast emerging market in India </li></ul><ul><li>By 20--, India will be having the potential to service a fleet of 1,000 commercial planes and 500 general aviation aircraft </li></ul><ul><li>Apart from commercial airlines, MRO service providers also provide services to the operators of chartered aircraft and corporate-owned aircraft </li></ul>SAMPLE Market share by activities Market overview Market size & growth Source: 2008 Y 2009 Z 2010 x% X USD mn <ul><li>Modifications of interiors, cabin electronics, avionics and paint are done when required </li></ul>z% Modifications Heavy Maintenance (D– Check) Engine Maintenance (C – Check) Components (B-Check) Line Maintenance (A-Check) Segment <ul><li>Performed once in every x months and done overnight at an airport gate </li></ul>w% <ul><li>Performed once in every x days and done overnight at an airport gate </li></ul>v% <ul><li>Performed once in every x-y months at a maintenance base in a hangar </li></ul>x% Market Share Description y% <ul><li>Performed once in every x-y years at a specialized facility </li></ul>
  5. 5. Drivers & Challenges 35 Growth in Air Traffic Drivers Manpower Cost Arbitrage Increasing Fleet Size Government Initiatives Challenges High Tax Regime and Regulatory Limitations Shortage of Land and Skilled Manpower
  6. 6. Indian MRO space is emerging as a competitive space with large investments from many foreign players <ul><li>MRO space in India is at a nascent stage with few domestic players </li></ul><ul><li>Many foreign players are planning to enter the market </li></ul><ul><li>Many projects in the pipeline are about to complete and operations will start by 20-- </li></ul><ul><li>A, B and few others have their own facilities for line maintenance and basic repairs and also offer service to other airlines </li></ul><ul><li>Domestic airlines source MRO services from service providers in Singapore and Europe </li></ul><ul><li>Most of the line maintenance activities are carried in-house in India but majority of C and D checks are done outside India </li></ul>SAMPLE Competition Aircraft Maintenance Relationships Source: Air India & Indian Airlines got merged and formed NACIL; Sahara merged with Jet Airways Outsourced/Offshored In-house XY got permission to carry C-check for Boeing 777 in India recently -- -- Paramount -- -- Go Air -- -- Indigo Air -- -- Spicejet -- -- Kingfisher -- -- Jet Airways -- -- Air India Component repair (B-check) Line Maintenance (A-check) Airline <ul><li>-- </li></ul><ul><li>-- </li></ul><ul><li>-- </li></ul><ul><li>-- </li></ul><ul><li>-- </li></ul><ul><li>-- </li></ul><ul><li>-- </li></ul><ul><li>-- </li></ul><ul><li>-- </li></ul>Expected Entrants in Indian MRO
  7. 7. Joint-Ventures (1/3) SAMPLE Source: <ul><li>Date of JV: Feb 2009 </li></ul><ul><li>GMR Hyderabad International Airport Ltd (GHAIL) has formed a joint venture with MAS Aerospace Engineering for setting up a state-of-the-art aircraft MRO facility in the airport premises </li></ul><ul><li>--- </li></ul><ul><li>--- </li></ul><ul><li>--- </li></ul><ul><li>-- </li></ul><ul><li>Date of JV: Yet to be announced </li></ul><ul><li>Pratt &Whitney Canada (P&WC) is interested in starting an MRO shop for aircraft engines along with HAL in Bangalore </li></ul><ul><li>---- </li></ul><ul><li>--- </li></ul><ul><li>--- </li></ul><ul><li>---- </li></ul>
  8. 8. Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The MRO Market report is a part of Research on India’s Aviation Industry Series. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. Natasha Mehta, CFA Phone: +65 8448 0449 E-Mail: [email_address] Gagan Uppal Phone: +91 98364 71499 E-Mail: [email_address] Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on

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