Safran India's unit is projecting a nearly 70% increase in revenue for the year 2025, primarily driven by its involvement in India's Gaganyaan human spaceflight mission and expanding contracts in the defence and space sectors. This anticipated revenue surge is expected to reach approximately 2 billion rupees (around $23.12 million) compared to a 40% rise in 2024.

Gaganyaan Mission

Safran's work on this ambitious human spaceflight initiative is a significant contributor to the projected revenue boost. The company is closely collaborating with the Indian Space Research Organisation (ISRO) to enhance its capabilities in the aerospace sector.

Safran has been a crucial partner in supporting ISRO's efforts for the Gaganyaan mission. The company has provided advanced technology and equipment essential for various aspects of the program, including launch vehicle systems and telemetry units. Their collaboration encompasses multiple ISRO centres and has been instrumental in ensuring the reliability and efficiency of India's space missions.

Private Sector Contracts

The rise in private-sector contracts within India's growing aerospace market is also fuelling this growth. Safran has been actively engaging with emerging space tech start-ups, leveraging the Indian government's push for increased private participation in defence and aerospace.

Strategic Manufacturing Shift: Safran plans to relocate some of its European manufacturing operations to India, which will further strengthen its operational base in the region and enhance collaboration with ISRO.

Safran, is significantly expanding its operations in India, which includes relocating some of its European manufacturing activities to the country. This strategic move aligns with India's "Make in India" initiative, aimed at boosting local manufacturing and reducing reliance on imports, particularly in defence sectors.

Electronics Manufacturing Unit: Safran plans to establish its first electronics manufacturing facility in Bengaluru, focusing on defence electronics such as sensors and avionics systems. The investment for this project is approximately $150 million, with operations expected to begin by 2026. This unit will not only serve the Indian Armed Forces but also act as a regional supply centre for Safran's global clientele.

LEAP Engine MRO Facility: In Hyderabad, Safran is constructing a Maintenance, Repair, and Overhaul (MRO) facility for LEAP engines, which is projected to be operational by 2025. This facility aims to service around 300 engines annually and will create approximately 1,000 jobs by 2035. The decision to set up this facility is driven by the growing aviation ecosystem in India and the increasing demand for engine maintenance services.

Collaboration on Engine Development: Safran is also partnering with India's Gas Turbine Research Establishment (GTRE) to develop a new 110kN engine for India's Advanced Medium Combat Aircraft (AMCA) program. This collaboration includes a commitment to provide 100% Transfer of Technology (ToT), allowing India complete control over production and export rights of the engine technology.

Expansion Plans: Beyond these specific projects, Safran has expressed intentions to further enhance its presence in India by leveraging local engineering talent and expanding its manufacturing capabilities. The company has been active in India for over 65 years and currently operates multiple facilities across the country.

Financial Projections

The company's space business, which accounted for about 30% of overall revenue, is expected to grow significantly, with projections estimating revenues from this sector to reach 800 million rupees (approximately $9.24 million) in 2025, up from 300 million rupees (around $3.47 million) in 2024.

By enhancing its local operations and tapping into the burgeoning Indian space market, Safran aims to increase its contribution from the Indian unit to about 20% of its global space industry revenues within two to three years.

This strategic focus on India's space and defence sectors positions Safran India as a key player in the region's aerospace landscape, capitalizing on both governmental support and private sector growth opportunities.

Reuters