Interview: Dassault Group Has An India Software Services Unit Offering Defence MSMEs A Digital ‘Trial Room’ Where They Can Test Their Products To Bag More Contracts
The Indian government has started to give defence procurement contracts to
micro, small and medium enterprises (MSMEs). Dassault Group's software
services subsidiary called Dassault Systemes, which already works with
companies like NASA, Airbus and Boeing, sees this as an opportunity to
enable these MSMEs to deliver on these contracts. It is currently in early
talks to set up a ‘common shared infrastructure model’ with state
governments — like Uttar Pradesh and Tamil Nadu — where MSMEs can design,
test and start rolling out technology-enabled defence products
Dassault Group has an India software services unit offering defence MSMEs a
digital ‘trial room’ where they can test their products to bag more contracts
Everyone in India knows that French fighter jet maker Dassault Aviation
clinched the deal with India to deliver Rafale, despite all the controversies
surrounding it. But, did you know that its parent company, the Dassault Group,
has a subsidiary that provides engineering software, much like Microsoft and
Oracle — and has an office in India?
The software offshoot, Dassault Systemes, is looking to make roadways into the
country by capitalising on the Modi administration’s push on Atmanirbhar
Bharat (Self Reliant India).
Under the massive reforms introduced last year, the Indian government is now
handing out defence procurement contracts to micro, small and medium
enterprises (MSMEs) to boost domestic defence manufacturing.
“The Ministry of Defence (MoD) has planned to invest about 63% of the outlay
for 2021-22 — about ?70,221 crore — on domestic procurement. This increase
will have a positive impact on enhanced domestic procurement, having a
multiplier effect on our industries, including MSMEs and start-ups,” said
Defence Minister Rajnath Singh during a webinar on February 22. A ‘Fund of
Funds’ worth ?10,000 crore has been specifically created for start-ups and
MSMEs.
| Company | Defence procurement contract | ITEM |
| ideaForge | ₹ 145 Crore | Unmanned aerial vehicles for high altitude areas |
| Bharat Forge | ₹178 Crore | Kalyani M4 vehicles |
| OshoCorp Global | ₹ 1,325 Crore | Develop and supply auxiliary power units (APUs) for T-72 and T-90 main battle tanks |
| Alpha Design Technologies | ₹ 590 Crore | Digitise Pechora missile and radar systems |
Dassault Systemes wants to capitalise on this opportunity by introducing what
they call a ‘common shared infrastructure model’, which essentially an
innovation centre. It is currently in early talks with state governments?
looking to set up defence industrial corridors. Namely, Uttar Pradesh and
Tamil Nadu as identified by India’s Finance Minister Nirmala Sitharaman.
“We’re working with the government to create a ‘common shared infrastructure
model’, where the government and Dassault Systemes will invest to create the
model. MSMEs will leverage the model and the technologies that are hosted
there, so that they also get elevated in the technology adoption scale,”
Ravikiran Pothukuchi, the Director of Dassault Systemes told Business Insider
in an exclusive interview.
Dassault Systemes is already the second-largest player in the global market
when it comes to computer-aided design (CAD) software after Siemens. This is
basically the use of computers to help with the creation, modification,
analysis and optimisation of a product.
Its clients include bigwigs like Boeing, Airbus, the National Aeronautics and
Space Administration (NASA) and its sister company, Dassault Aviation. In
India, its clients include Ashok Leyland, Suprajit — India’s largest cable
maker — and drone manufacturer General Aeronautics.
“What we realised is that the defence ecosystem of MSMEs [micro, small and
medium enterprises] don’t have the wavelength to invest in these
technologies,” Ravikiran Pothukuchi, the director of Dassault Systemes told
Business Insider in an exclusive interview.
What Is A ‘Common Shared Infrastructure Model’?
A ‘common share infrastructure model’ is basically a stage where defence
manufacturing companies and start-ups can come, toy with their ideas, and test
their concepts — both in the virtual and physical world.
“[The companies] take back their learnings and industrialise at a mass scale
in their operations set up,” explained Pothukuchi.”That’s the idea that we’re
discussing locally as well. There are some governments that have shown
interest.”
The French IT software services company already has a similar set up in the US
state of Wichita in collaboration with the Wichita State University. The state
of Wichita is the aerospace hub of the US, like Bangalore.
“Initially, governments are helping them to adapt to these technologies and
we’ll become relevant to them at a later date. That is an investment we’re
making along with the government,” the IIM-Bengaluru graduate told Business
Insider.
He hopes that the project to roll out the model will take shape within the
next few months.
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