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Hard Sell

Issue: 07-2011

The campaign for IAF’s acquisition of 126 MMRCA is hotting up for a European showdown. It is between Eurofighter Typhoon and Dassault Rafale. The CEO of Cassidian Air Systems, Bernhard Gerwert outlines the plans for Eurofighter to SP’s Aviation.

 

SP’s Aviation (SP’s): How do you view the latest development and the short-listing of Eurofighter and Rafale?

Bernhard Gerwert (Gerwert): We are very pleased to continue the Eurofighter Typhoon campaign in India. During rigorous field evaluation trials, our combat aircraft has demonstrated its outstanding capabilities to the Indian Air Force. We are confident that at the end of the selection process, the Government of India will be convinced that the most capable and advanced multi-role combat aircraft on the market is the best choice for safeguarding the nation’s security in the next decades.

SP’s: Europeans once again seem to be leading one of the mega deals in India. How optimistic can you be for this market?

Gerwert: The Eurofighter Partner Companies are optimistic at the prospect of winning India as a strategic partner because we can offer India the most modern combat aircraft available on the world market. Eurofighter has a life span of more than 40 years ahead. This means there is a tremendous in-built growth potential, in which we would like India to participate as a new partner of the entire programme.

Our industrial partnership offer exemplifies our unique value proposition. We propose India unprecedented transfer of cutting-edge technology and at the same time we are keen on winning the country as a manufacturing and development partner for the global Eurofighter programme. Plugging India into the global value chain of the Eurofighter programme will boost the development of an indigenous aerospace and defence industry in India. Getting the best combat aircraft technologies and becoming a partner in its further development, is an opportunity for India which no competitor can match. With Eurofighter Typhoon, India will gain access to a wide array of sensitive technologies from four leading defence and aerospace companies in Europe.

SP’s: As the major partner in the Eurofighter programme and campaign leader in India how do you view the MMRCA offset conditions?

Gerwert: We are confident of meeting the offset requirements of the Indian Government set at 50 per cent. We are engaged in intense discussions with the Indian industry and other stakeholders to firm up various collaborative models which will enable us to meet our offset obligations to the utmost satisfaction of our customer. Even when we submitted the Eurofighter offset offer in August 2008, we already had signed more than 20 memorandum of understanding (MoUs) with major Indian defence and aerospace companies, both public and private. However, our aim is not just to comply with the RFP obligations. We have gone a step further and propose India the unique opportunity for an unmatched industrial partnership which would make it a full participant in the Eurofighter Typhoon programme.

We are interested in boosting the industrialisation of the Indian aerospace and defence industry, for example, by leveraging the huge engineering talent that lies there for mutual benefit. That is how we see our partnership with India—going beyond contractual obligations in order to support India’s self-reliance in defence and aerospace industries.

SP’s: Do you think the Indian industry can handle 50 per cent of the offset arrangement?

Gerwert: Yes. We started to work on preparing India’s industry to meet the challenge of acquiring new state-of-theart capabilities. In fact, we have initiated an industrial engagement plan in India to ensure a successful transition to the MMRCA. We will move very quickly in case India selects our combat aircraft. To ensure success in terms of time, material, quality and budget, we are ready to engage with HAL and support small and medium-sized companies in India to absorb the envisioned technology transfer and offsets. The Eurofighter partner companies will offer India’s public and private industry and research and development (R&D) organisations a customised technological roadmap ensuring the transfer of technology and expertise. This relates not just to the traditional area of production but also to design, development and engineering.

SP’s: In the event Eurofighter becomes the final choice, what special commitment would you make to India?

Gerwert: With the full support of the Governments of Germany, the UK, Spain and Italy, we propose to make India an integral participant in the Eurofighter Typhoon programme. That is an unmatched commitment. It also opens up an entirely new potential for cutting-edge defence exports from India. Together with Europe’s top defence companies—EADS, BAE Systems and Finmeccanica—India could thus co-develop and co-produce future capabilities for the Eurofighter. These capabilities can then also be exported to other countries. Such a collaborative effort would greatly accelerate the development of India’s aerospace and defence industry and an independent study forecasted that the selection of Eurofighter Typhoon would create more than 20,000 highskilled jobs in India.

SP’s: What role does Cassidian play in the Eurofighter community?

Gerwert: Cassidian is the Security and Defence Division of EADS which is Europe’s leading aerospace and defence company. Cassidian in Germany and Spain is the biggest shareholder within the Eurofighter consortium which comprises four partners from Germany, the UK, Spain and Italy. Looking at the current situation of the MMRCA competition with only two vendors left, it is obvious that four partners can offer more to India than just one.

SP’s: What specific value for India does Cassidian bring in with the other partners?

Gerwert: Eurofighter Typhoon is the only truly international combat aircraft in the world. Europe’s leading defence companies and hundreds of suppliers have pooled their core competences to create it. Our success is based on the cross-border cooperation, we live every day. We share sensitive technologies, know-how and processes between our partner companies to a point which our competitors would never contemplate. It is precisely this spirit of trust and technology sharing that we will extend to India, once it accepts our offer. In addition, Eurofighter Typhoon’s strategic suppliers are also committed to transfer equipment-related technologies to India, ensuring that these technologies are available for application to India’s indigenous programmes. In Europe, there are about 400 suppliers supporting the programme. A similar set-up will be required in India.

SP’s: Can you elaborate on the various tie-ups with Indian industry you are working with?

Gerwert: We are continuously creating new assets to support our endeavour to share knowledge, best practices, technologies and resources with India for mutual benefit. As for Eurofighter Typhoon, our goal is to bring key capabilities, skills and technologies to the Indian industry and create a diverse supplier base here which caters to the global programme. HAL, with which we are already in deep discussions, will play a leading role. In addition, there is scope for an active involvement from the private sector. We are talking to both public and private sector companies as part of an industrial engagement plan to ensure a smooth and successful transition to the MMRCA.

Independent of a selection in the MMRCA tender, Cassidian inaugurated India’s first ever defence oriented Engineering Centre operated by a foreign company in February 2011. The centre currently employs around 60 highly trained Indian engineers, a figure which is expected to surpass 200 by 2012. Our Engineering Centre will be at the forefront of Engineering and System Development, developing core competencies in the areas of radar systems, protection systems, avionics, engineering and 3D visual simulation, etc. In addition, Cassidian recently received Indian Government approval for a joint venture (JV) with Larsen & Toubro for design, engineering, manufacturing, distribution and marketing in the fields of electronic warfare, radars, avionics and mobile systems for military applications.

In 2010, Cassidian was awarded a contract by the Indian Defence Research & Development Organisation (DRDO) to supply consultancy services to the Indian armed forces in developing the system architecture of its airborne early warning & control (AEW&C) programme. This contract follows the one signed in 2009 with ADA for Flight Testing Consultancy on the light combat aircraft. These examples prove that with the support of Cassidian, Indian authorities will have access to latest technologies.

Another example of supporting India in the field of homeland security is the Tetra network for Andhra Pradesh Police. Cyberabad Police Tetra Network was inaugurated in December 2010, which covers the region of Cyberabad, the high-tech hub that surrounds the city of Hyderabad. Cassidian has also teamed up with its local partner Sanchar Telesystems Limited to provide the Indian Parliament in New Delhi with a digital, GPS-based, encrypted communication system.