Rolls-Royce plans to double its sourcing from India over the next five years, focusing on advanced aerospace engines, naval propulsion, and power systems.
The British engineering giant has taken significant steps to enhance its sourcing capabilities in India. Rolls-Royce currently procures high-precision parts and components for civil aerospace, defense, and power systems businesses. With a robust supplier ecosystem, the company collaborates with several strategic partners, including Hindustan Aeronautics Ltd (HAL), Force Motors, Tata, Bharat Forge, and Godrej & Boyce. By strengthening these collaborations, Rolls-Royce aims to boost India’s position as a key player in global supply chains.
Aligning with India’s ‘Make in India’ Vision
The company’s decision to increase its sourcing aligns with the Indian government’s ‘Make in India’ initiative. Rolls-Royce remains committed to supporting India’s growing industrial capabilities, enhancing manufacturing efficiency, and promoting indigenous production. By fostering local partnerships, the company contributes to India’s self-reliance in defense manufacturing, reducing dependency on imports.
Strategic Partnership with Azad Engineering
In January 2024, Rolls-Royce signed a long-term agreement with Hyderabad-based Azad Engineering. This agreement ensures the production and supply of complex components for defense aircraft engines. By integrating Azad Engineering into its global supply chain, Rolls-Royce strengthens its ability to manufacture critical aerospace components locally. This partnership also enables Indian suppliers to adhere to global quality standards while contributing to Rolls-Royce’s technological advancements.
TVS Supply Chain Solutions Extends Collaboration
Apart from defense and aerospace, Rolls-Royce has reaffirmed its commitment to enhancing supply chain operations in the Asia-Pacific region. In February 2024, TVS Supply Chain Solutions extended its contract with Rolls-Royce for an additional five years. This contract ensures the continued operation of the Parts Distribution Centre in Singapore, which plays a crucial role in servicing the Asia-Pacific markets. Through this partnership, Rolls-Royce strengthens its logistics network and enhances efficiency in delivering critical components.
Driving Growth in India’s Aerospace and Defense Sectors
India has emerged as a critical hub for aerospace and defense manufacturing. Rolls-Royce’s increased sourcing commitment will accelerate growth in these sectors by encouraging innovation, job creation, and technology transfer. By leveraging India’s skilled workforce and engineering expertise, the company enhances its supply chain resilience and operational efficiency.
Conclusion: Strengthening the Global Supply Chain
With a strategic focus on India, Rolls-Royce reaffirms its long-term commitment to expanding manufacturing capabilities in the region. By doubling its sourcing, forging new partnerships, and reinforcing existing collaborations, the company plays a crucial role in boosting India’s industrial ecosystem. These initiatives not only support India’s economic growth but also position the country as a global leader in aerospace and defense manufacturing.
