CARGOCONNECT-APRIL2025 - Flipbook - Page 12
C A T A P U L T
India’s Defence
Supply Chain
and Focus on the AMCA
Programme
T
he defence supply chain
ecosystem is a complex
and highly specialised
network that demands
precision, innovation,
and collaboration. In the context of
India’s Advanced Medium Combat
Aircraft (AMCA) programme, the
evolving dynamics of this ecosystem
highlight the critical role of PublicPrivate Partnerships (PPPs) and the
strategic realignment of defence manufacturing capabilities. The AMCA programme,
India’s 昀椀rst indigenous 昀椀fth-generation stealth 昀椀ghter initiative, is not just
a technological milestone but also a litmus test for the country’s ability
to integrate private sector expertise into high-stakes defence projects.
The Shift from Traditional Models to SPV-Driven Collaboration
Historically, Hindustan Aeronautics Ltd (HAL) has been the backbone of
India’s military aviation manufacturing, producing iconic aircraft like the
Tejas Light Combat Aircraft (LCA) and the Su-30MKI under license. However,
the AMCA programme represents a paradigm shift in India’s defence
procurement strategy. By adopting a Special Purpose Vehicle (SPV) model,
the Ministry of Defence (MoD) is fostering a collaborative framework that
leverages the strengths of both public and private entities. This approach
not only diversi昀椀es the supply chain but also mitigates risks associated with
over-reliance on a single entity.
The SPV model is particularly signi昀椀cant in the
context of the AMCA programme, which demands
cutting-edge technologies in stealth, avionics, and
propulsion systems. By involving private sector
giants like Tata Systems and Larsen & Toubro
(L&T), the MoD is ensuring that the programme
benefits from the agility, innovation, and
scalability that private enterprises bring to
the table. This strategic shift underscores the
growing importance of private sector participation in India’s defence modernisation e昀昀orts.
Tata Systems and L&T: Frontrunners in the
AMCA Supply Chain
Tata Systems and L&T have emerged as the frontrunners in the AMCA programme, solidifying their positions
as key players in India’s defence manufacturing landscape.
Both companies bring a wealth of experience and infrastructure that align
seamlessly with the programme’s technical and industrial requirements.
Tata Systems: As part of the Tata Group’s expansive defence portfolio,
Tata Systems has been a trailblazer in aerospace and defence manufacturing.
Its expertise in producing critical components for aircraft, coupled with its
robust R&D capabilities, makes it a natural 昀椀t for the AMCA programme.
The company’s involvement is expected to extend beyond manufacturing,
encompassing design, testing, and integration of advanced systems.
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L&T: A heavyweight in engineering and defence
manufacturing, L&T’s credentials in handling largescale, complex projects are unparalleled. The company’s
experience in building naval vessels, missile systems, and
aerospace components positions it as a vital contributor
to the AMCA supply chain.
L&T’s role is likely to focus
on structural manufacturing,
systems integration, and quality
assurance.
The Role of the Private Sector
Consortium
While Tata Systems and L&T are at
the forefront, the AMCA programme’s
private sector consortium is expected
to include additional players specialising
in subsystems like avionics, radar, and
propulsion components. This collaborative
approach ensures that the programme bene昀椀ts from
a diverse pool of expertise, addressing the multifaceted
challenges of developing a 昀椀fth-generation stealth 昀椀ghter.
The consortium’s composition is still under process,
with several 昀椀rms either withdrawing or being excluded
due to the programme’s stringent eligibility criteria.
This underscores the importance of prior experience
in aerospace manufacturing, particularly in areas like
fuselage construction and aircraft assembly. Firms focussed
on electronics, software, or ground-based systems, while
valuable in their own right, have found it challenging
to qualify for a programme of the AMCA’s complexity.
HAL’s Continued Relevance in the AMCA Programme
Despite the increased involvement of private players,
HAL remains a cornerstone of the AMCA programme.
With a minority stake in the SPV, HAL will provide
technical oversight, contribute critical assemblies (such as
engines and landing gear), and ensure compliance with
Indian Air Force (IAF) speci昀椀cations. The organisation’s
decades of experience in 昀椀ghter jet production will be
instrumental in guiding the programme to fruition.
HAL’s role in the AMCA programme also highlights
the complementary nature of public and private sector
collaboration. While private 昀椀rms bring innovation and
scalability, HAL’s institutional knowledge and technical
expertise ensure that the programme adheres to the
highest standards of quality and performance.
Strategic Implications for India’s Defence Ecosystem
The AMCA programme is more than just a defence
project; it is a testament to India’s evolving defence
manufacturing ecosystem. By embracing a collaborative
SPV model, the MoD is setting a precedent for future
high-stakes projects. The programme’s success will
depend on the seamless integration of public and private
sector capabilities, as well as the ability to navigate the
complexities of 昀椀fth-generation 昀椀ghter jet development.
For private sector players, the AMCA programme
represents a golden opportunity to establish themselves as
key contributors to India’s defence supply chain. However,
as the exclusion of MDS demonstrates, specialisation and
prior experience are non-negotiable. Firms aspiring to
participate in such programmes must invest in building
niche capabilities and forging strategic partnerships to
enhance their competitiveness.
