Safran Plans to Boost Procurement from India by 400% by 2030
Safran Plans to Boost Procurement from India by 400% by 2030
French aerospace giant Safran SA has announced a strategic move that reinforces its position in India's emerging aviation market at a time when the company is restructuring its global supply chain. The company aims to increase component procurement from India from the current 100 million euros to 500 million euros by 2030. This increase corresponds to a 400% growth in Safran's annual purchases from India, making the country one of the company's first-tier sourcing centers in its global supply network.
Safran CEO Olivier Andriès emphasized in an interview with Bloomberg that India's supply potential is advancing rapidly in both volume and quality. According to the CEO, the country attracts global aerospace players not only through cost advantages, but also through indigenous technological capabilities, a defense ecosystem suited to the threat environment, and long-term aviation investments.
The most critical pillar of Safran's growth plan is the LEAP engine MRO (maintenance, repair and overhaul) center opened on November 26 in Hyderabad, India. This facility will allow Indian airlines to access maintenance and repair services domestically, services they previously had to source abroad. This is expected to deliver gains in cost reduction, shorter maintenance cycles, and operational efficiency.
Safran Electronics & Defense signed a cooperation agreement the same week with India's state-owned Bharat Electronics Ltd. (BEL). Under the agreement, Hammer air-to-ground ammunition will be produced jointly in India. The weapon is expected to be integrated with Rafale fighter aircraft and India's indigenously-built Tejas light combat aircraft. Safran's total investment is expected to be approximately 15 million euros.
These developments are entirely aligned with India's priorities of "localization, technology transfer, and offset" established through the Defence Acquisition Procedure (DAP) that came into force in 2020. The DAP requires foreign defense companies to carry out local production or spend a portion of funds within the country for large-scale orders. Safran's strategic alignment offers a deeper cooperation perspective on both the defense and civil aviation fronts.
India has become one of the largest customers of French defense industry in recent years. The Air Force has procured 36 Rafale aircraft, and the Navy placed an order for 26 Rafale Marine aircraft in 2023. The Snecma M88 engine used in these aircraft is one of Safran's most strategic products. The company has announced that it has established a unit to conduct MRO of the engine in India.
More significantly, Andriès stated that they are open to manufacturing Rafale engines in India if new orders are received. Such a move would mean that Safran manufactures engines outside France for the first time in its history. This could elevate India to the upper segment of the global aviation supply chain.
Safran's India strategy is indicative of the company's emphasis on the Asia-Pacific region in its long-term growth plans. At the same time, as global aircraft manufacturing is being redistributed based on cost, policy, geopolitical, and supply continuity criteria, India-based production is becoming a critical alternative.
Key Points
Safran is increasing procurement from India to 100M € → 500M € levels.
This growth represents a 400% increase.
The LEAP engine MRO center formally opened in Hyderabad.
Through Safran + Bharat Electronics partnership, Hammer air-to-ground ammunition will be produced in India.
For the M88 engine used in Rafale, MRO investment has been made in India.
If new orders are received, Safran is open to engine manufacturing outside France for the first time.
The move is aligned with India's localization (DAP 2020) strategy.
India is rapidly becoming a growing aerospace and defense sourcing hub for Safran.
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Author: SedatOnat.com
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