Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
This Paper briefly explains the Defence & Aerospace opportunity with an analysis of the market size, defence budget and procurement processes in India.”
This presentation details the overview of the aerospace & defense sector. It highlights the current scenario of the sector in India as well Gujarat and also features details about government policies and Make in India initiative to develop industries & promote investment in the sector.
Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
This Paper briefly explains the Defence & Aerospace opportunity with an analysis of the market size, defence budget and procurement processes in India.”
This presentation details the overview of the aerospace & defense sector. It highlights the current scenario of the sector in India as well Gujarat and also features details about government policies and Make in India initiative to develop industries & promote investment in the sector.
Aerospace and Defence Sector Diversification | ACMAIndia ACMA
Over the years the years, Indian auto component players have strongly integrated themselves into the global automotive supply chain primarily through their established manufacturing processes and world-class quality. They have been the torchbearers of Indian auto industry’s success story and a case study for our frugal manufacturing skills. The auto component sector has been the face of “Make in India” drive for more than a decade.
Indian defence and aerospace sector is fast emerging as the sunrise sector and will take the centre stage in government’s “Make in India” drive. The government’s push for indigenization in defence and growing interest from global commercial aerospace players to source from Indian suppliers, have opened up multiple supply chain opportunities for Indian private players.
We strongly feel, ACMA members are best positioned to grab these opportunities in the sector due to their proven manufacturing capabilities. The Indian auto component players have all the right ingredients in place to repeat the success story of automotive in aerospace & defence sector. This is the right time for the ACMA member companies to devise a clear strategy and come out with an action plan for the sector.
In this context, KPMG had been appointed by ACMA to assist them in their endeavour towards diversification into aerospace & defence. Our efforts have received overwhelming support from the global aerospace & defence companies and have been
successful in positioning ACMA as the right partner for the global OEMs and Tier1s who are looking at sourcing from India.
We are glad to jointly release the Aerospace & Defence sector diversification report with KPMG. The report captures the sector’s landscape, opportunities, challenges and outlines the road map for the ACMA members who are aspiring to be a part of the sector. We hope you will find this document useful and informative in planning your next steps.
The Indian government has taken the opportunity of the COVID-19 pandemic to look at the aerospace and defence sectors comprehensively, and to initiate policy measures that might go a long way in resetting the sector on a more pronounced growth trajectory
Billion Dollar Opportunities in the Indian Defence SectorDr. Amit Kapoor
This presentation was delivered by Dr V K Saraswat at India's National Competitiveness Forum 2015, the flagship event of India Council on Competitiveness.
Institute for Competitiveness (India) the Indian knot in the global network of the Institute for Strategy and Competitiveness at Harvard Business School has initiated the India Council on Competitiveness. The Council, created in collaboration with the U.S. Council on Competitiveness; is based in Gurgaon, India and is an association of distinguished members from industry, academia, think tanks, media and researchers. The mission of the India Council is to set an action agenda to drive Indian competitiveness, productivity and leadership in world markets to raise the standard of living for all Indians. For more information, visit www.compete.org.in
Make in-India- An Overview of Defence-Manufacturing-in-IndiaSinghania2015
It is in strategic interest of a nation aspiring to be the regional power to develop
indigenous and internationally competitive defence industry base. Presently,
India is one of the largest importers of conventional defence equipment.
According to government statistics, roughly 60% of India’s defence
requirements are met through imports.
India has the potential to emerge as a global platform for defence research,
manufacturing, supply chain sourcing, software development, and offsets, which will strengthen our
defence capabilities and spur industrial development as well as exports in this sector.
Government is also carrying out reforms in defence procurement to increase efficiency, invite foreign
players with excellent capabilities and encourage domestic industry. It has introduced policies to
strengthen technology transfer, including liberalized FDI in defence production. The report of Committee
of Experts for Amendments to Defence Procurement Policy (DPP) 2013 is a progressive step in this
direction. Also, Make in India the new flagship program of Government of India has put a renewed
emphasis on creating a conducive policy environment for improving domestic defence manufacturing.
These radicle initiatives present opportunities for the foreign companies to enter India and local
companies to collaborate and design, develop and showcase their engineering strength. This will also
further India’s objective to create jobs, catalyze technology development, and transform India into a selfreliant
nation with export capabilities in defence sector. India’s existing wealth of talent, technology and
cost advantages together can help make defence products globally competitive.
Advantage of 100% FDI in Indian Defence ProductionAshish Michael
It is a article written about the expected change in Indian government policy of allowing 100% FDI in defence production. It showcase the comparison how the change will be of benefit and create a WIN-WIN opportunity for both Indian manufacturing and Foreign Companies. It has been written in a fairly simple language so that a layman can also understand.
Armouring india indigenisation of india’s defence needsRaj Narayan
India is the largest importer of defence equipment in the world. It is therefore evident that the domestic industry is not being optimally utilized to meet the country’s defence requirement.
Summary
• 3rd largest armed forces in the world.
• 40% of budget spent on capital acquisitions.
• 60% of requirements met by imports.
• INR 250 Billion to be invested in 7-8 years.
Reasons to Invest
• India’s current requirements on defence are catered largely by imports. The opening of the strategic defence sector for private sector participation will help foreign original equipment manufacturers to enter into strategic partnerships with Indian companies and leverage the domestic markets and also aim at global business. Besides helping build domestic capabilities, this will bolster exports in the long term.
• Opportunities to avail defence offset obligations to the tune of approximately INR 250 Billion during the next 7-8 years.
• The offset policy (which stipulates the mandatory offset requirement of a minimum 30% for procurement of defence equipment in excess of INR 3 Billion) introduced in the capital purchase agreements with foreign defence players would ensure that an eco-system of suppliers is built domestically.
• The government policy of promoting self-reliance, indigenization, technology upgradation and achieving economies of scale and developing capabilities for exports in the defence sector.
• The country’s extensive modernization plans, an increased focus on homeland security and India’s growing attractiveness as a defence sourcing hub.
• High government allocation for defence expenditure.
Vibrant Gujarat Summit Profile on Defence offsetVibrant Gujarat
• With perceived threats and a recovering economy, defence spending to increase substantially.
• Present Offset Opportunity is estimated at USD 5 bn.
• Offset opportunity expected to rise to USD 12 billion over next 3 years and USD 4‐5bn per year thereafter.
• Greater private sector participation in defence, to be in favour of Indian companies.
• 55% of offset contracts are taken by the private sector.
• Indian Aerospace and Defence industry are emerging as an outsourcing hub for many services like CAD,CAM and CAE, manufacturing and design engineering, testing and integration, and technical publications
Aerospace and Defence Sector Diversification | ACMAIndia ACMA
Over the years the years, Indian auto component players have strongly integrated themselves into the global automotive supply chain primarily through their established manufacturing processes and world-class quality. They have been the torchbearers of Indian auto industry’s success story and a case study for our frugal manufacturing skills. The auto component sector has been the face of “Make in India” drive for more than a decade.
Indian defence and aerospace sector is fast emerging as the sunrise sector and will take the centre stage in government’s “Make in India” drive. The government’s push for indigenization in defence and growing interest from global commercial aerospace players to source from Indian suppliers, have opened up multiple supply chain opportunities for Indian private players.
We strongly feel, ACMA members are best positioned to grab these opportunities in the sector due to their proven manufacturing capabilities. The Indian auto component players have all the right ingredients in place to repeat the success story of automotive in aerospace & defence sector. This is the right time for the ACMA member companies to devise a clear strategy and come out with an action plan for the sector.
In this context, KPMG had been appointed by ACMA to assist them in their endeavour towards diversification into aerospace & defence. Our efforts have received overwhelming support from the global aerospace & defence companies and have been
successful in positioning ACMA as the right partner for the global OEMs and Tier1s who are looking at sourcing from India.
We are glad to jointly release the Aerospace & Defence sector diversification report with KPMG. The report captures the sector’s landscape, opportunities, challenges and outlines the road map for the ACMA members who are aspiring to be a part of the sector. We hope you will find this document useful and informative in planning your next steps.
The Indian government has taken the opportunity of the COVID-19 pandemic to look at the aerospace and defence sectors comprehensively, and to initiate policy measures that might go a long way in resetting the sector on a more pronounced growth trajectory
Billion Dollar Opportunities in the Indian Defence SectorDr. Amit Kapoor
This presentation was delivered by Dr V K Saraswat at India's National Competitiveness Forum 2015, the flagship event of India Council on Competitiveness.
Institute for Competitiveness (India) the Indian knot in the global network of the Institute for Strategy and Competitiveness at Harvard Business School has initiated the India Council on Competitiveness. The Council, created in collaboration with the U.S. Council on Competitiveness; is based in Gurgaon, India and is an association of distinguished members from industry, academia, think tanks, media and researchers. The mission of the India Council is to set an action agenda to drive Indian competitiveness, productivity and leadership in world markets to raise the standard of living for all Indians. For more information, visit www.compete.org.in
Make in-India- An Overview of Defence-Manufacturing-in-IndiaSinghania2015
It is in strategic interest of a nation aspiring to be the regional power to develop
indigenous and internationally competitive defence industry base. Presently,
India is one of the largest importers of conventional defence equipment.
According to government statistics, roughly 60% of India’s defence
requirements are met through imports.
India has the potential to emerge as a global platform for defence research,
manufacturing, supply chain sourcing, software development, and offsets, which will strengthen our
defence capabilities and spur industrial development as well as exports in this sector.
Government is also carrying out reforms in defence procurement to increase efficiency, invite foreign
players with excellent capabilities and encourage domestic industry. It has introduced policies to
strengthen technology transfer, including liberalized FDI in defence production. The report of Committee
of Experts for Amendments to Defence Procurement Policy (DPP) 2013 is a progressive step in this
direction. Also, Make in India the new flagship program of Government of India has put a renewed
emphasis on creating a conducive policy environment for improving domestic defence manufacturing.
These radicle initiatives present opportunities for the foreign companies to enter India and local
companies to collaborate and design, develop and showcase their engineering strength. This will also
further India’s objective to create jobs, catalyze technology development, and transform India into a selfreliant
nation with export capabilities in defence sector. India’s existing wealth of talent, technology and
cost advantages together can help make defence products globally competitive.
Advantage of 100% FDI in Indian Defence ProductionAshish Michael
It is a article written about the expected change in Indian government policy of allowing 100% FDI in defence production. It showcase the comparison how the change will be of benefit and create a WIN-WIN opportunity for both Indian manufacturing and Foreign Companies. It has been written in a fairly simple language so that a layman can also understand.
Armouring india indigenisation of india’s defence needsRaj Narayan
India is the largest importer of defence equipment in the world. It is therefore evident that the domestic industry is not being optimally utilized to meet the country’s defence requirement.
Summary
• 3rd largest armed forces in the world.
• 40% of budget spent on capital acquisitions.
• 60% of requirements met by imports.
• INR 250 Billion to be invested in 7-8 years.
Reasons to Invest
• India’s current requirements on defence are catered largely by imports. The opening of the strategic defence sector for private sector participation will help foreign original equipment manufacturers to enter into strategic partnerships with Indian companies and leverage the domestic markets and also aim at global business. Besides helping build domestic capabilities, this will bolster exports in the long term.
• Opportunities to avail defence offset obligations to the tune of approximately INR 250 Billion during the next 7-8 years.
• The offset policy (which stipulates the mandatory offset requirement of a minimum 30% for procurement of defence equipment in excess of INR 3 Billion) introduced in the capital purchase agreements with foreign defence players would ensure that an eco-system of suppliers is built domestically.
• The government policy of promoting self-reliance, indigenization, technology upgradation and achieving economies of scale and developing capabilities for exports in the defence sector.
• The country’s extensive modernization plans, an increased focus on homeland security and India’s growing attractiveness as a defence sourcing hub.
• High government allocation for defence expenditure.
Vibrant Gujarat Summit Profile on Defence offsetVibrant Gujarat
• With perceived threats and a recovering economy, defence spending to increase substantially.
• Present Offset Opportunity is estimated at USD 5 bn.
• Offset opportunity expected to rise to USD 12 billion over next 3 years and USD 4‐5bn per year thereafter.
• Greater private sector participation in defence, to be in favour of Indian companies.
• 55% of offset contracts are taken by the private sector.
• Indian Aerospace and Defence industry are emerging as an outsourcing hub for many services like CAD,CAM and CAE, manufacturing and design engineering, testing and integration, and technical publications
Roadmap for airport service delivery measurement - Alaistair DeaconAmor Group
Lockheed Martin's Chief Aviation Technologist Alaistair Deacon looks at a roadmap for airport service delivery measurement. Presented at #APEX2013 in Doha.
Airline Revenue - Case Study and Industry AnalysisFrank A.
Airlines are facing increased pressure to cut costs and optimize revenue. Technology and other innovative ideas will be presented to harness all the resources necessary to be as efficient and cost effective as possible. The advent of Big Data for the Airline industry is coming at exactly the right time. Just over 100 years in the making, the industry is poised to flourish. New entrants and globalization of the world economy through communication mediums are giving rise to demanding business models that strive to get and keep market share. It will be imperative for all industry players to use data and integrate into all cost saving and profit based business initiatives. This paper illustrates and investigates many spheres of the airline industry including all the facets where airlines may increase revenue, streamline processes, cut costs, and become as cost efficient as possible.
Indian Airport and Ground Support Equipment Market - Opportunities for US Com...IVG Partners
With a total market size of $5.6 billion and an average growth rate of 18 percent per year in passenger and air cargo over the last five years, the civil aviation sector in India has witnessed a rapid development.
This growth will spur increased investment in airports and ground equipment. The present market size for airport equipment and ground support services is estimated to be $360 million.
As a support service to the aviation industry, India’s Maintenance, Repair & Overhaul (MRO) sector is estimated to grow at 10 percent and reach $1.17 billion by 2010 and $2.6 billion by 2020.
Another promising sub-sector in the airport equipment and ground-handling services continues to be technology-driven communication and ground services. Analysts also estimate that there will be a need for 8,000 pilots by 2020.
A
Project Report
On
Aviation Industry
Submitted By
Name Roll Number
Miss. KiranBendre 05
Mr. KalidasBhandwalkar 06
Mr. SanketBharte 07
Miss. SangitaBhilare 08
Class: - MBA I, VIIT,Baramati
Under The Guidance Of
Dr. RupendraGaikwad
Subject:- Industry Analysis- Desk Research (215)
Index
Chapter No Contents Page No
1 Industry Analysis
Nature of the Industry,
Market share of the company 3
2 Promoters & Management Ethos
Background of promoters
CSR policies
3 External environment
Controlling ministry
4 Financials
Ratio analysis of financial data
5 Recent development
Margers & Acquisition
Indian Aviation Industry
Chapter 1 : Industry Analysis – the Basics
History of the Industry
The first commercial flight in India was made on February 18, 1911, when a French pilot MonsignorPiquet flew airmails from Allahabad to Nain, covering a distance of about 10 km in as many minutes.
Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India International. The domestic aviation scene, however, was chaotic. When the American Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines sprang up, scrambling for traffic that could sustain only two or three. In 1953, the government nationalized the airlines, merged them, and created Indian Airlines. For the next 25 years JRD Tata remained the chairman of Air-India and a director on the board of Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has 474 whereas other airlines have 350.
For many years in India air travel was perceived to be an elitist activity. This view arose from the “Maharajah” syndrome where, due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful.
In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth.
Until less than a decade ago, all aspects of aviation were firmly controlled by the Government. In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953; this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issui
Security Screening Market size worth US$14,995.386 million by 2028knowledgesourcing01
The security screening market is estimated to grow to US$14,995.386 million by 2028. The security screening market is growing as the demand for security due to the increase in terrorist activities across the world and the requirement for surveillance and security at public locations including malls, airports, train stations, and others. Explore additional details by visiting our website.
Aircraft wheels are generally overlooked yet important component of an aircraft landing gear system providing the necessary structural strength and support to the tyres
Growth in the Integrated Security Market across Indian AirportsNeil Dave
This presentation sheds light on how new infrastructural developments across airports in India can lead to sales opportunities for providers of video surveillance and other integrated security solutions.
Bangalore International Airport Limited (BIAL) is a Build-Own-Operate-Transfer (BOOT) model. • The first phase of the airport consist of a 4000-metre long runway, taxiways and an apron area with aircraft stands and a terminal building. • The concession agreement between the Government of India and BIAL was signed in July 2004 and the airport became operational in May 2008. • Private promoters hold 74% stake in BIAL while the state holds the remaining 26%
Design and creative ideas for no frills airports in tier-ii & tier-iii citiesRajiv Babu Chintala
The project deals with the topic, “Design and Creative ideas for no-frills (low cost) Airports in tier-II and tier-III cities”. Indian government is planning to build small i.e., No-Frill Airports with rudimentary facilities, in order to bring down the cost of flying. Such airports will be a world apart from the swanky ones at Delhi and Mumbai. As per a blueprint being prepared by the Airports Authority of India (AAI), these airports, which will be located in small towns, will lack conveyor belts, arrival lounges and even air-conditioning. Luggage will have to be checked in manually. One air traffic control (ATC) tower will cater to a number of such airports.
Therefore, this project deals with the analyzing and understanding of basic facility requirements for the safe operations of the airports and thus give the maximum inputs with the overall idea to the industry to further proceed with the planning stage of no- frill airports. Also the project elucidates the primary requirements in the airports with cost effective manner and also proposes for the revenue generation strategies which provide profit for the airport authority.
In this Project it has been analyzed and observed all the necessary requirement for the airport operations and thus gave a brief suggestion on the no –frill airport facility requirements with reference to passenger and staff satisfaction levels.
Here it has made a detail explanation of various facilities provided in the airport with specific dimensions like Airport Terminal Facilities, ATC requirements, parking facilities, revenue generation strategies, dimensional indications and other miscellaneous facility requirements.
Multi-Country Analysis of Strategic Information Management in the Airlines Industry: a comparative assessment for the United States, China, and South Africa
Similar to Airport security market assessment (20)
venkateswaran2010avaition_ it is my aim to do this course. i offering as ppt to venkateswaran2010avaition_ it is my aim to do this course. i offering as ppt to students students
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
2. • Aviotech is an India focussed Aerospace, Defense and Security advisory and investments
practice
• working with firms and their senior management throughout the value chain of
enterprises,
• ranging from OEMs, Component Manufacturers, Private Equity / Venture Capital firms,
Law Firms
• to Research and Advisory Bodies.
• Our offerings comprise:
• ▪ Strategic Roadmaps for market & products
• ▪ Manufacturing Advisory
• ▪ Offset and Policy Advisory
• ▪ Aerospace & Defense Investment Advisory (buy and sell side)
• ▪ Aerospace & Defense Regulatory insights and compliance
• ▪ Market Assessment, mapping and Evolution insights
• ▪ Sector specific thought leadership research
• Our services are delivered by a sector specialist team with extensive experience in the
Indian
• Aerospace, Defense and Security sector and international markets.
• To know more about how Aviotech can help you and your organisation leverage the
• opportunity offered by Indian Aerospace, Defense and Security opportunity, please visit
• www.aviotech.com or write to rahul@aviotech.com .
3. • Aviotech does and seeks to do business with companies covered in its
research reports. As a result, investors should be aware that the firm may
have a conflict of
• interest that could affect the objectivity of this report. Investors should
consider this report as only a single factor in making their investment
decision
• Aviotech Defense Advisory & Investments
• Rahul Gangal*
• +91 (0) 770 233 1818
• Director
• rahul@aviotech.com
• Udit Narula
• +91 (0) 965 445 2626
• Research Associate
• udit.narula@aviotech.com
• Airport Security Market Assessment
• Synopsis
• ▪ Airport security is a key component of Critical Infrastructure Protection
4. • which is a subset of the larger Homeland Security spend for India. The
• Homeland Security spend annually in India (across central government,
• state governments and private industry) is anticipated at more than $38 Bn
• The projections for the next 5 years are anticipated to be several folds more
• ▪ Of the Homeland security spend the Critical Infrastructure Protection
• contribution is anticipated at 16%
• ▪ Airport security contributes to approximately $800 mn as an annual
• opportunity. This trend is seen to have a strengthening uptick in spending
• over the next 2-3 years as key airports of India are progressively modernised
• alongwith the inception of new ones
• ▪ Aviotech anticipates the market for Airport Security in India to be a
• cumulative opportunity of $6 Bn over the next 5 years
• Indian Security Market
• Source: Aviotech Research
5. • Aerospace and Defense Update
• Aviotech does and seeks to do business with companies covered in its
research reports. As a result, investors should be aware that the firm may
have a conflict of
• interest that could affect the objectivity of this report. Investors should
consider this report as only a single factor in making their investment
decision
• Defense Advisory & Investments
• ▪ The first step in analyzing the Critical Infrastructure Protection market is
• defining what constitutes “Critical Infrastructure”
• ▪ Critical infrastructure is a term used by governments to describe assets
• that are essential for the functioning of a society and economy. Thus if the
• consequential aspect of failure of an infrastructural facility is taken into
• account, a large and diverse set of sectors fit into the framework of
• “Critical infrastructure”
• ▪ Key threats to Critical Infrastructure include:
• ▪ Terrorism and internal security
6. • ▪ New forms of cyber crime
• ▪ Natural hazards
• ▪ Increasing overall infrastructural spends are cascading into larger capital
• outlays for Critical Infrastructure in specific and security market in general.
• Total spend by the government on Critical Infrastructure security in India
• over the next 5-6 years is anticipated to be around $32 Bn
• ▪ The key focus areas of Critical Infrastructure Protection include integrated
• security systems, disaster management equipment, emergency response
• forces and physical manning of installations
• ▪ Airport security is one of the major sub components of Critical
• Infrastructure Protection. Thus this report is an attempt to provide an
• overview of the Critical Infrastructure security market through a detailed
• mapping of the airport security market in India
7. • ▪ The same exercise when performed individually for all the other
• components of Critical Infrastructure security will give us a fair idea of the
• overall market
• Detailed Assessment - Critical Infrastructure
• Critical Infrastructure Protection - Components
• Critical Infrastructure market in India
• Key areas of
• focus
• ▪ Integrated security
• systems
• ▪ Disaster
• management
• equipment
• ▪ Emergency
• response forces
• ▪ Physical manning of
• installations
• Projected
• market
• $32 Bn in the next 5-
• 6 years
• Share out of the
• overall security
• market
• 16%
8. • Aviotech does and seeks to do business with companies covered in its
research reports. As a result, investors should be aware that the firm may
have a conflict of
• interest that could affect the objectivity of this report. Investors should
consider this report as only a single factor in making their investment
decision
• Defense Advisory & Investments
• Aerospace and Defense Update
• ▪ India's domestic aviation market continues to expand significantly:
• ▪ Passenger traffic increased from 40 mn in 2000-01 to 124 mn in
• 2010-111
• ▪ Cargo handled has expanded by 18% year on year1
• ▪ Investment of Rs. 12,900 Crores envisaged on creating new airport
• facilities in the 12th five year plan2
• ▪ Currently there are 50 operational airports in the public domain
• and 15 in the private domain. This number is expected to increase
• significantly4
• ▪ The need for security equipment, therefore, is growing in tandem with
9. • the growth in the number of airports and travellers. The core areas of
• high-tech equipment, such as digital surveillance technology, perimeter
• control equipment, access control and emergency response have
• captured the attention of all airport operators (both private and
• government)
• ▪ The Indian airport security market is expected to present an opportunity
• to the tune of $6 bn till 2015-16. This will include upgradation of existing
• airports, replacement of equipment as well as procurement for the
• Greenfield airports planned
• Detailed Assessment - Airport Security in India
• Number of Airports: Projected rise
• Public-Private
• partnership projects
• 12 airports (till 2014)
10. • Modernization of
• metro airports
• 5 airports (till 2014)
• Modernization of non
• metro airports
• 35 airports (till 2014)
• Airport development
• in Eastern states
• 5 airports (till 2014)
• No frills/Low cost
• airports
• 25 airports (till 2014)
• Private/Merchant
• airport development
11. • 15 airports (till 2014)
• Airport Authority of
• India’s projection for
• 2020
• 500 airports
• Airport Security in India - Classification
• Source: Aviotech Research
• Source: Position paper on the airports sector in India
• by the Department of Economic Affairs, Ministry of
• Finance, Government of India
• *Source:
• 1Creating World Class Infrastructure by Ministry of Civil Aviation, GoI
• 215th Annual Report, Airport Authority of India
• 3 List of Licensed Aerodrome (as on 31st August, 2011) by the DGCA
12. Defense Advisory & Investments
▪ Focus areas for capacity building in airport security will be upgradation
and integration. As an illustration, the future may be defined by systems
which integrate perimetric security equipment with surveillance
equipment which will further generate triggers to activate response
principles and control mechanisms
▪ The process of upgradation of equipment at the existing airports and
new installation at the planned airports has been set into motion with
the following emerging trends:
Airport security equipment market in India
Airport Security Infrastructure: Key Roles
Overseer
Airport Authority of India
Regulator
Bureau of Civil Aviation
Security
Buyer
Airport Operator (Private or
Government)
Implementer
Central Industrial Security
forces
13. Aviotech does and seeks to do business with companies covered in its research
reports. As a result, investors should be aware that the firm may have a conflict of
interest that could affect the objectivity of this report. Investors should consider this
report as only a single factor in making their investment decision
Defense Advisory & Investments
Aerospace and Defense Update
▪ The responsibility lies with Central Industrial Security Force, although
many private airport operators have now started complementing it with
private security
▪ About 4000 personnel for the larger airports and 500 for the smaller
airports are employed for airport security
▪ This sub-segment addresses about $300 mn of the airport security
market each year
▪ Largest opportunity is seen to lie in bullet proof jackets, hand held
weapons and light armored vehicles
Airport Security Spend : Physical Manpower
▪ This sub-segment addresses about $250 mn of the airport security
market each year
▪ Constantly evolving technologies and rapid obsolescence ensure quick
turnaround of the equipment necessary
▪ Major sets of opportunities are:
▪ Scanners: Including X ray Baggage Scanners, Hand held metal
14. Detectors, Hand Baggage Scanners and Door Frame Metal
Detectors (about $120 mn)
▪ Surveillance equipment: Including CCTV System & surveillance
monitors, IP surveillance cameras (about $80 mn)
▪ Perimetric access: Bollards, Tyre killers, Boom barriers, Electrical
Fencing, Alarms and sensor systems for fencing and Turnstiles
(about $50 mn)
▪ Largest opportunity is seen to lie in X ray baggage scanners, hand
baggage scanners, CCTV systems and electrical fencing and sensor
systems
Airport Security Spend : Perimetric Security
Major components as
a percentage of the
total physical
manpower security
market
Major components
as a percentage of
the total Perimetric
Security market
15. Assumptions for projecting market size for each equipment class:
•
The classification used in the figure “Airport Security in India – Classification” and
contains the same sub components
•
The airports for public use were divided into bigger airports in terms of footfalls
(Delhi,
Mumbai, Bangalore etc.) and smaller airports (Bhubaneswar, Chandigarh etc./).
•
The number of existing/projected equipment researched through sources at each
airport was plugged in accordingly
•
The rate at which the government buys the listed equipment was as the benchmark
price of equipment
•
All the security equipment was assumed as getting replaced once every three years on
account of wear & tear or technology obsolescence, all the services an yearly cycle of
contract renewal
•
Integration and installation as well as service and maintenance have each been taken
50% of the cost of equipment
•
The total market was projected accordingly
All figures in $ mn and over
a 3 year horizon
16. Defense Advisory & Investments
▪ This sub-segment addresses about $210 mn of the airport security
market each year
▪ Major sets of opportunity are:
▪ Bomb detection and disposal: Including Explosive Vapour Detector,
Improvised Explosives Device (IED) Detector, Liquid bomb detector,
Non linear Junction Detector, Water Jet Disruptors, Bomb Disposal
Kit, Bomb disposal blankets, IED Jammers and Bomb Disposal Suits
(about $45 mn)
▪ Disaster response Vehicles: Police vehicles, ambulances,
communication vehicles and fire tenders (about $155 mn)
▪ Including Fire fighting equipment: Including smoke detectors, fire
extinguishing systems and hand held extinguishers (about $10 mn)
▪ Largest opportunity is seen to lie in IED detectors & jammers and
emergency vehicles
Airport Security : Disaster Management & Emergency Response
▪ This sub-segment addresses about $70 mn of the airport security market
each year
▪ Largest opportunity is seen to lie in smart card readers, iris recognition
equipment and doorphones/intercom
Identification/Access Control
Major
components as a
percentage of the
total Disaster
Management
market
Major components
as a percentage of
the total
Identification /
Access Control
market
Aviotech Defense Advisory and Investments
India
202-206 Sewa Corporate Tower, Sector 25, MG Road, Gurgaon 122002
UK
31A, St. James Square, London SW1 YJR
www.aviotech.com
17. Page 10
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