Business Potentialsin Aviationand ITS: howthe EBTC project ...€¦ · Boeing and Airbus forecast...
Transcript of Business Potentialsin Aviationand ITS: howthe EBTC project ...€¦ · Boeing and Airbus forecast...
1
Cooperation Opportunities between EU and India in the transport sector
The EBTC project – European Business & Technology Centre
Business Potentials in Aviation and ITS: how the
EBTC project can support a better EU-INDIA
Cooperation
Sofia, 30 th June 2010
Speaker: Annalisa GAMBA
Ceipiemonte S.c.p.a. – Italy -
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
2
Focus: Aviation
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
3
Global perspectives in aviation sector
• Aerospace & defense companies are investing in new markets to pursue the customers and relationships that will help drive sales growth over at least the next 20 years
• By 2028 , regions outside Europe and North America are expected to own about half the commercial aircraft in service
(source: A&D Insights PriceWaterhouseCoopers –Boeing Current Market outlook 2009 - 2028)
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
4
Global perspectives in aviation sector
• According to Indian Civil Aviation Ministry,
“within five years India will be breaking into
the top five aviation markets in the world”
• Led by India and China the Asia-Pacific
market is projected to grow more than 70%
making it the largest market in the world for
new aircraft
(source: Boeing Current market Outlook 2009 – 2028)
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
5
Perspectives in Aviation Sector in India
• Economic development spurs demand for air
travel.
• By 2019 about 6% of India’s total GDP will
come from travel and tourism
• Travel and tourism will account for more
than 7% of total employment in India by
2019 equating to about 40 million jobs
(source: study by the World Travel & Tourism Council)
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
6
Perspectives in Aviation Sector in India
• The Indian aviation industry is one of the fastest-growing aviation
markets in the world.
• With the liberalization of the indian aviation sector the industry has
witnessed a transformation with the entry of the privately owned full
service airlines and low cost carriers
• The sector shows a significant increase in number of domestic air travel
passengers
• Factors responsible for the higher demand for air transport include: (a)
the growing middle class and its purchasing power, (b) low airfares
offered by Low Cost Carriers; (c ) the growth of the tourism industry in
India; (d) increasing outbound travel from India; (e) the country’s
overall economic growth
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
7
The aviation industry
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
• Prior to 2001, the aerospace and defence industries were exclusively reserved for Public Sector Units (PSUs). Consequently, these PSUs have grown tremendously by developing and acquiring new technologies and entering into the manufacture of indigenous aircraft
• Over the years, these PSUs have also helped a number of industries (large and small) to acquire technologies, technical and managerial processes, better quality standards, infrastructure and facilities, networking etc. This has helped the industry enhance its capabilities through exposure to flexible and modern manufacturing methods while simultaneously reducing the tolerance for cost and time overruns
8
The aviation industry
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
• In 2001, the Government allowed 100% domestic private investment in the defence sector upon obtaining an Industrial Licence (IL) and FDI of up to 26% with conditions. Allowing private investment has begun to attract a number of Indian companies into the sector
• The introduction of the defence offset policy in 2006 and significant liberalization in 2008 has provided significant opportunities for Indian companies entering the sector. New players are entering the industry and are aggressively building capabilities to make them attractive partners for the primes and Tier-1 suppliers. Foreign companies are showing high interest in establishing their presence in India.
9
Perspectives in Aviation Sector in India
• The rapid growth of this industry has attracted global aerospace majors to India.
• All segments within aerospace are showing tremendous growth, including civil aviation, military aviation and Space research
• Civil aviation — In 2007 and 2008, India assumed the ninth position in the world’s civil aviation market, an increase from 12th place in 2006. India’s air passenger travel has been growing at almost 25% a year. According to Government estimates, growth in this sector will outpace the global average until 2025.
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
10
Perspectives in Aviation Sector in India
• Military aviation — Secondary research indicates
that India will spend about USD 35 billion on
military aviation over the next 20 years because
most of its existing fleet needs to be replaced. The
Indian Army is in the process of finalizing the
purchase of 197 helicopters
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
11
Perspectives in Aviation Sector in India
• Space — India is one of the six countries in the world that undertakes Space launches. The Indian Space Research Organization (ISRO) under the Department of Space, Government of India, implements the Indian space programme involving the development and operation of satellites, launch vehicles and ground systems, for carrying out research and applications related to communications, remote sensing, meteorology and space sciences. India’s 2008–09 budget allocated a 16% increase in science spending from the previous year.
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
12
Way forward
• Crucial Role of Governments and industry bodies in supporting the industry and encouraging the development of a critical mass of capabilities, technologies and suppliers
• Support from Government — The Indian Government has embarked upon several measures to develop and promote the aerospace sector.
• Support from Industry Bodies — Industry bodies in general have a crucial role in the creation and sustainability of an environment conducive to industry growth.
• Regulations and Taxes — India’s tax framework needs rationalisationand sector-specific incentives.
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
13
Drivers of the Indian
aerospace market
Several factors driving the growth of IndiaSeveral factors driving the growth of India’’s aerospace industry:s aerospace industry:
•• the liberalization of civil aviation policiesthe liberalization of civil aviation policies
•• offset requirementsoffset requirements
•• a strong domestic manufacturing basea strong domestic manufacturing base
•• cost advantagescost advantages
•• a wella well--educated talent pooleducated talent pool
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
14
Commercial Market
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
15
Market growth rates
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Source: Boeing Current Market Outlook
Despite the industry experienced
several downturn, during the next
20 years, there will be a
significant demand’s recovery
16
World Passenger Traffic
Flows
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
According to IATA forecasts China, India and
Vietnam will be towed to the development of
demand for both domestic and international.
The Asian continent will increase the volume
of passengers transported by an average of
7%.
Source: Boeing Current Market Outlook
17
Country’s snapshot
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
India is one of the most dynamic region for air travel
Indian major airlines - Jet Airways,
Air Deccan, Alliance Air and Kingfisher - have already bought
dozens of turboprop aircraft
Some important Italian
and Indian players of the sector are working to enhance their
business relationships
18
Country’s snapshot
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
In 2005, the Government for the first time authorized foreign investment in aviation
India today is attracting more new investments. The CAPA (Center for Asia Pacific Aviation) estimates that will be invested approximately 30 billion dollars over the next 5 years in infrastructure for air transport
Strong price competition among the region's airlines will serve to stimulate new demand, drawing millions of passengers away from the extensive rail network to much faster air services
19
Country’s snapshot
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
India has a total of 454 airports out of which 12 are international airports.
Wide-scale investment in airport and airspace infrastructure is imperative to
Southwest Asia's projected air travel market growth.
It is estimated that if 5% (800.000/day), passengers travelling by train every day
will make use of air transport, India will need additional capacity of 40,000 seats
per day.
Airbus's global market forecast also predicted that India will have an average
annual passenger traffic growth of 7.7 per cent until 2025.
Boeing and Airbus forecast that the Indian Air Force fleets will procure additional
1000 aircrafts over the next 20 years.
The steep rise in the number of flights makes it necessary to acquire the
appropriate management and air traffic control systems and new aircraft
dimensioned to the characteristics of the market
20
India Business Success Stories
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
21
Successful international cooperation agreements
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Company Main activities
ThalesPresent since 2003 with Thales International India-management business in the country and entities participating in the JV with local companies.
EADS Present since 2006 with EADS India Private Limited. Creating a service center
setting up (in cooperation with local partners) for Engineering and IT.
Boeing Present since 2004 with Boeing International Corp. India Private Limited to support both civil and military aerospace activities.
Lockheed Martin Recently opened a JV subsidiary with local companies
BAe System BAeHAL SW Ltd. JV for SW and services. Further JV with HAL and TATA.
Russian Players Strong presence by the main player in Russia (Kamov, Suko, MIG, MIL, Ilyushin) mainly in the aviation and helicopter
Israeli Players In the aviation sector (principally UAVs), missile systems and C & C predominantly terrestrial
Chinese Players Far away.
22
Italian potential cooperation agreements
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Finmeccanica has answered the first requirement of the Indian market with
the technological capabilities of the systems of Selex Sistemi Integrati,
which over the years has provided radar equipment to the main airports of the country and who recently won the tender for the delivery of 13 radar
systems for air traffic control for the Indian Air Force.
Selex Sistemi Integrati is also in contention to win a contract to supply 30
three-dimensional transportable radar systems for the interception items at
low altitude for the Indian Air Force.
AgustaWestland is proposing to satisfy the requirement of Indian Navy
helicopters embarked on a modern middle class.
23
India’s competitive scenario
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
24
Local Players
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Business Opportunities Indigenous players
Aircrafts, Helicopters, Satellite Structures/ Launch Vehicle
HAL, ISRO, ACF Systems Ltd.
Avionics, Radars HAL, BEL, Karnataka Hibryd Micro
Devices, Verdant Telemetry
Castings and ForgingsHAL Foundry Forge Division, Cardionics India, G-Plast Ltd, Investment and Precision Casting Ltd, Steel and Industrial Forging Ltd, Vishnu
Forge Industry.
Electrical/Electronics Component/Systems
Compupower Pvt., Elsonic Santo Corp., Flexitron, Southern Electornic Pvt., United Telecoms Ltd, Verdant Telemetry, Zener Systems Pvt., Zeonics.
25
Local Players
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Business Opportunities Indigenous players
HALPower Plants/APU, Starters
AEROSPACE ENGINEERS, Cardionics
India, Elastomerics Engineers, Meco
Lam, Mercury Metal Ltd., Polimer
Enterprise, Sujan Industries
Materials metallic and non metallics
HAL, Max & Aviation Ltd., Taneja and
Aviation Ltd., Varman Aviation Ltd.Maintenance, Overhaul and Engineering Services
ACME Engineering Co., Data Patterns,
Indos Industries Ltd., Kasco Industries,
Mak Controls and Systems, Mat
Incorporated, Merlinhawk Associates
Ltd., Sika Interplants Sytems Ltd.,
Southern Electronics Ltd., System
Controls
Ground Support Equipments, Measuring & Test Equipment
26
Local Players
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Business Opportunities Indigenous players
Government Tool Room & Training
Centre, HAL, National Aerospace
Laboratories, P-Met HighTech Ltd
R&D Lab. & Testing Lab
ACME Engineering Co., Godrey &
Boyce Ltd, G-Plast Ltd., Hampson
Industries India, HAL, Kobashi Machine
Tools, Kumaran Industries Ltd., Maini
Precision Product Ltd., Prathibha
Industries, Turbocam India
Precision Machined Parts
27
Focus on ITS
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
28
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Keeping traffic moving is a problem faced
globally at all the levels of government
Possible solution: implementation of
Intelligent Transport System – ITS
ITS holds promise for a sustainable and
balanced transportation alternative
29
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
ITS is essentially the application of
computer and communications
technologies coming in aid of the transport
problems
ITS technologies enable gathering of data
or intelligence and then providing timely
feedback to traffic managers and road
users
30
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
ITS results in:
•Improved safety to drivers
•Better traffic efficiency
•Reduced traffic congestion
•Improved energy efficiency
•Environmental quality
•Enhanced economic productivity
31
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Examples of ITS include:
•Advanced Traffic Management Systems
•Advanced Traveller Information Systems
•Advanced Vehicle Control Systems
•Electronic Toll Collection Systems
•Advanced Public Transportation Systems
32
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
ITS endeavour for Indian cities is initiated
with collaborative projects involving Local
Auhtorities, specialized organizations such
as the Department of Information
Technology, AITS India, research and
academic institutions
33
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Important initiatives:
Metropolitan and rural programme areas
are focused primarily on ITS infrastructure
Intelligent vehicle initiative aims to
accelerate the development and availability
of advanced safety and information
systems applied to all types of vehicles
34
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
The intelligent vehicle initiative covers
applications for passenger vehicles,
commercial trucks, buses and specialized
vehicles.
Other special applications to emergency
response, police and highway
maintenance vehicles
35
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Many ITS applications are based on ongoing and recentlycompleted research on crash avoidance, in vehicle safety,
automated highway systems
Key factor: involvement of public and private stakeholders to
ensure that ITS solutions are technologically, socially,
institutionally and economically viable
Due to the complex technology convergences required for ITS
applications, auto and civil engineering, ICT, electronics, satellite
and mapping technologies, there is a need for a standard national
framework to facilitate interoperability and cost effectiveness
36
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Examples of ITS technologies and likely end users:
Traffic policeRed Light Violation Detection System
Traffic planners and development
authorities
Intelligent Traffic Congestion Management
System
General public and traffic plannersAdvanced Travellers Information Systems
Town planners and local authoritiesIntelligent Parking Lot Management System
Traffic planners and development
authorities
Real Time Traffic Counting & Monitoring
System
Medium and large cities deploying ATCSSecond Generation Area Traffic Control System
Traffic police and local authoritiesWireless Traffic Control System
LIKELY END USERSITS TECHNOLOGY
37
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Large Public Private Partnership programmes
• Indian Highways Infrastructure programme
• Key opportunities : installation of user friendlyElectronic Toll Collection (ETC)
• Ksrtc (Karnataka State Road Transport Corporation) will soon be implementing the ITS for Mysore city
under GEF (Global Environmental Fund) – SUTP (Sustainable Urban Transport Programme), the
initiative by World Bank
38
ITS –Intelligent Transport System
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
Successful stories
• BRT – Bus Rapid Transit – Public Transport
Programme Jansmarg
• eCall – involvement of Indian company LogicaCMG
and important European companies
39
THANK YOU
EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES
CEIPIEMONTE S.c.p.a.
Piemonte Agency for
Investments, Export and
Tourism
�Corso Regio Parco 27 – 29
10152 Torino – Italy –
�+39 011-6700.511
�+39 011 696.54.56
E-mail: [email protected]