India's rapidly expanding aviation industry is attracting major players in the aircraft engine maintenance, repair, and overhaul (MRO) sector. With the country poised to become the world's third-largest aviation market, the need for robust MRO capabilities has never been more pressing.
Safran, a leading French aerospace company, is spearheading this initiative with a new LEAP engine MRO facility in Hyderabad, while industry rivals Pratt & Whitney and Rolls-Royce are considering establishing their own independent facilities.
India's Growing Need for Engine MRO
The Indian MRO sector, while showing growth, faces a significant gap in component and engine capabilities. Currently, only AI Engineering Services (AIESL) is directly involved in engine maintenance, highlighting the need for expansion.The sector, valued at USD 1.7 billion in 2021, is expected to reach USD 4.0 billion by 2031. However, in 2019-20, Indian airlines outsourced MRO services worth USD 1.26 billion, with countries like the USA, France, and the UAE gaining significant business. This trend is set to change as domestic capacity grows.
Global Companies Eye India's Potential
Recognizing the opportunity, Safran is establishing a 15,000 square-meter LEAP MRO facility in Hyderabad, investing approximately $163 million. Scheduled for completion in 2025, this plant will support LEAP engines used by IndiGo and Air India, becoming one of Safran's largest MRO hubs worldwide. This move underscores India's strategic importance and the potential for substantial growth in its aircraft engine maintenance market.The Directorate General of Civil Aviation (DGCA) has urged Pratt & Whitney to invest in an Indian MRO facility due to recurring problems with PW engines used in Airbus A320neo aircraft. These issues have resulted in grounding numerous aircraft, causing significant disruption for airlines like IndiGo.
Rolls-Royce, having secured a recent 100-engine contract with Air India, is also contemplating an independent MRO in India. This development marks a pivotal shift for Rolls-Royce, making India a potential hub for engine maintenance.
The Future of India's MRO Landscape
With India's aircraft fleet expected to double within the next five years, the demand for engine overhauls will skyrocket. As airlines expand their operations, OEMs (Original Equipment Manufacturers) are proactively establishing facilities to meet this growing demand. These initiatives have the potential to transform India into a major MRO hub, reducing outsourcing costs and improving aircraft turnaround times.The government's 'Atmanirbhar Bharat' (Self-Reliant India) initiative aligns perfectly with these developments, fostering a domestic ecosystem for aircraft maintenance expertise. The future of India's aviation industry looks bright, with a focus on self-reliance, increased capacity, and strategic partnerships positioning it as a global leader in MRO services.
