Discussing Supply Chain Opportunities For India | News18 Rising India Summit | CNBC-TV18

Summary

Boeing's significant deal with India involves supplying 220 planes and potentially 70 more, reflecting India's booming aviation market with an estimated 2200 planes needed in the next 20 years. Boeing is enhancing local support with logistics and customer centers. India's focus is on infrastructure growth and efficient airspace usage to accommodate this expansion. The discussion also covers India's potential to become a global manufacturing hub, with aspirations for Indian brands to go global, supported by a strong EMS sector and design-led manufacturing. Mercedes highlights India as its fastest-growing market with 10 launches planned and a commitment to electric vehicles.

Takeaways

• 🚀 Boeing secured a landmark deal to supply 220 planes to Air India with an option to supply 70 more aircraft in the future.
• 🌟 The Indian aviation market is projected to grow significantly, with an estimated need for 2200 airplanes over the next 20 years.
• 🛠 Boeing is focusing on enhancing customer support in India by establishing logistics and customer support centers to provide local assistance.
• 🏗️ Infrastructure development is crucial for the aviation industry in India, with plans to double the number of airports and aerodromes.
• 🔄 Optimizing airspace usage and integrating with new technologies like drones and UAVs is essential for handling increased air traffic.
• 💹 The vision for Dixon is to be among the top five EMS companies globally, focusing on large-scale manufacturing and Industry 4.0 processes.
• 🌐 Indian brands are expected to rise globally, following the pattern of South Korea and Japan, by first focusing on EMS and then on designing their own products.
• 🚗 Mercedes sees India as its fastest-growing market and plans to launch 10 new models, including four electric vehicles (EVs) in the next 12 to 18 months.
• 🌐 Boeing's sourcing from India is on an upward trajectory, with a focus on increasing capabilities rather than setting a specific numerical target.
• 🏭 The manufacturing sector in India is expected to grow, with a focus on smart mega-factories and leveraging domestic market strength for export opportunities.

Q & A

What is the significance of the Big Air, India deal for Boeing?

The Big Air, India deal is significant because it involves Boeing supplying 220 planes to Air India, with the potential to supply an additional 70 aircraft. This reflects the growing aviation market in India and Boeing's commitment to meeting the evolving needs of its customers.

How does Boeing plan to support Air India's future aviation needs?

Boeing plans to support Air India's future needs by offering flexibility to upsize their order as the market grows. They also aim to establish logistics and customer support centers in India to ensure timely technical support.

What is Boeing's forecast for the Indian aviation market over the next 20 years?

Boeing forecasts that the Indian aviation market will grow significantly, with an estimated 2200 airplanes needed over the next 20 years.

What infrastructure challenges does the Indian aviation market face?

The Indian aviation market faces challenges related to airport infrastructure, which needs to be expanded to handle the anticipated growth in air transport passengers. The government's initiative to double the number of airports and aerodromes is critical for this growth.

How does Boeing plan to enhance its presence in India?

Boeing aims to enhance its presence in India by setting up large capacities, world-class infrastructure, and focusing on efficiencies and Industry 4.0 processes. They also plan to skill the workforce and focus on diversity in their operations.

What is the vision for Dixon's growth in the EMS sector?

Dixon's vision is to be in the top five EMS companies globally, which involves setting up large capacities, focusing on efficiencies, and adopting Industry 4.0 processes.

How does Dixon plan to create Global Brands from India?

Dixon plans to create Global Brands by initially focusing on being the brand behind the brand, then designing their own products, and investing in the brand and ecosystem.

What is the current status of Mercedes in the Indian market?

Mercedes is the fastest-growing market for luxury vehicles in India, with double-digit growth expected in the coming years.

How many new launches does Mercedes plan for India in the near future?

Mercedes plans to launch 10 new models in India in the near future, with a focus on electric mobility.

What is the current sourcing value of India for Boeing globally?

The current sourcing value of India for Boeing globally is over 8000 crores, with a focus on increasing capabilities rather than setting a specific numerical target.

How does Sanjeev view the future of manufacturing in India?

Sanjeev sees a bright future for manufacturing in India, with a focus on smart mega factories and the potential to reach 300 billion dollars in manufacturing.