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Sunday, 12 January 2014

Aerospace Park in Bangalore Urged Not To Be Treated As a Real Estate Project

According to the head of UTC Aerospace Systems (UTAS), in Bangalore, the aerospace industry has the prospect to gain $20 billion in revenues over the next 10 to 15 years. This is possible provided the state government can encourage an ecosystem that pulls global companies.

Bangalore is considered to be the aerospace capital of India.


According to the VP of UTAS, the government needs to draw companies to invest here. It has been noted that the state has formed a 1,000-acre aerospace park near the Kempegowda International Airport Bengaluru. However, the project isn't pulling global tier I aerospace manufacturers. It is a known fact that Bangalore has the right talent pool. This talent pool has been cherished over the years by public sector enterprises like DRDO, ISRO and HAL. The VP stated that the government surges ahead about the project (Aerospace Park) by merely selling land parcels, then they would definitely not be giving rise to an ecosystem concept. He also stated further that in order to for the tier I companies to set up shop, an aerospace SEZ must have tier III and IV suppliers along with training and academic institutions.

He also laid stress on the fact that they were insisting the government to cultivate the park as an ecosystem. They were against the park being given to a real estate developer as they believed doing so would give rise to problems. Instead, the park must be given to an ecosystem developer.

He also stated that industry should invest in people and technology and not in infrastructure and land. Currently, the aerospace industry is focused in the US and Europe. China and India seem to be gaining increased attention what with majority of companies looking forward to expand outside of the given two markets. But given the fact that China has been facing issues over intellectual property rights, hence, aerospace companies are inclined towards India. UTAS gained a position in India with its global $19 billion purchase of Goodrich two years ago. UTAS produces lighting systems, evacuation slides, seating systems, cargo systems, integrated systems, electrical power systems and sensors for Boeing aircraft and Airbus.

He further stated that on an average around 60 percent of the global production of those products were done out of Bangalore. Moreover, UTAS employs approximately 2,000 people. It has also expanded its 700,000 sq. ft. facility which is situated in the IT hub of Whitefield. Apart from this, he added that they were looking forward to reach a stage wherein they can develop, design, support and manufacture products from India. Besides, there were many areas which needed attentions such as the design side, he stated.

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