The Hindu concept of God goes beyond considering Him as the supreme, all mighty and omniscient figure. According to Hindu teachings, though God governs the whole universe, every human being can develop a personal relation with Him. One can worship God out of love and not only out of fear. Devotion or bhakti is a form of love that the followers of Hinduism have for God. It is often referred to as a key principle of Hinduism, even by the philosophically inclined people.

Form of God:

According to Hindu scriptures, God is beyond any attributes of form, color and shapes. He does not have any specific form or name and is referred to as Nirguna brahman (attribute-less god). However, God can take any form. He can be strong and powerful, the provider of boons, the destroyer or the savior. These forms provide a basis for the Hindu worshipper to easily pursue the otherwise inconceivable supreme deity. In general, Hindu followers believe that God is Omnipotent, Omniscient, and Omnipresent.

God as Omnipotent (all-powerful):

According to Hinduism, God can do anything. He is all-powerful. The world is created by Him and everything happens according to His wishes. He can create this world in zero time and also destroy it in a fraction of second.

God as Omniscient (perceiver of all things):

The world is created by God and He knows everything about it. There is nothing hidden from Him, He knows all. He has records of the past births of every creature and knows what an animal or person will do in its present and coming lives. There is nothing called free will, everything is governed and directed by Him.

God as Omnipresent (all-pervading):

According to Hindu teachings, God is present everywhere at the same time. Hindus believe that God creates the whole cosmos/ world. Nothing can exist without Him.

The beauty of Hindu teachings lies in the fact that they allow the followers to experience, and understand the concept of God. There are the Puranas that elaborate the glory of God. There are also scriptures like Upanishads that use questions and reasoning to explain the concept of God. Texts like the Yogasutras cover the whole scope, from reasoning to divine glory of God. These scriptures and texts tell things that are beyond normal human comprehension. However, they do not command a blind following, and permit the scope of analysis.

INDIAN SPECIAL ECONOMIC ZONE (SEZ)  CONCEPT –  A STITCH IN TIME

Prof. A.C. Shukla

(e-mail : shuklaac@indiatimes.com)

Introduction:

 Indian Economy is one of the fastest growing economies of the world.  Export contribution towards growth is the backbone of Indian economy.  To strengthen the export, India was one of the first Asian Countries to recognize the effectiveness of Export Processing Zone (EPZ) model.  In order to give colours  to its dream, Asia’s first EPZ was set up in Kandla (India) in 1965.  After few years,  China made experiment on Special Economic Zone (SEZ), and, embarked upon their SEZ experiment In 1979-80.  It was a great impact in Chinies Economy, and from closed economy model (at that time), it registered 25.97 billion Yuan (about 3.13 billion US dollars) in gross domestic product (GDP) in the first six months of the year 2008-09, from the contributon given by Hainan Province, China’s largest special conomic zone (SEZ).

(source – http://english.peopledaily.com.cn/200107/31/eng20010731_76176.html)

 With a view to boost export in open economy, Government of India  announced the Special Economic Zones (SEZs) Policy in April 2000. This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations. The impact of SEZs was very responsive, and export figures increased tremendously. 

 

At present, 1943 units are in operation in the SEZs. In the SEZs established prior to the Act coming into force, there are 1143 units providing direct employment to over 1.97 lakh persons; about 37% of whom are women. Private investment by entrepreneurs in these SEZs established prior to the SEZ Act is of the order of over Rs. 5626.24 crore.  

 Present scenario:

 SEZs provide good infrastructure and make it cost – effective for manufactures to set up manufacturing units.  The environment is conducive  the timely production of export goods and manufacturers receive exemptions from the payment of excise and income tax.  Moreover, SEZs enable manufacturers to receive faster clearances from various government departments.  Manufacturers  in SEZs may also be able to use resting and analytical facilities at concessional rates.

At present, 1016 units are in operation in the SEZs, providing direct employment to over 3.49 lakh persons; about 40 per cent of whom are women. Private investment by entrepreneurs in the SEZs established prior to the SEZ Act is of the order of over Rs. 81000 crore. In the 63 notified SEZs which have come up after 10th February 2006, investment of Rs. 13,435 crore has already been made in less than one year.

 Visible Gains from SEZs :                                                                                                    

Direct Employment in Special Economic Zones

(Source: http://www.sezindia.nic.in/HTMLS/visiblegains-sez.html)

Total employment in SEZs: 3,49,203 Lakh persons

Total incremental employment generated in SEZs since Feb., 2006: 2,14,499 persons

Break up:

( A ) DIRECT Employment created in notified SEZs (as of 30.6.08):

       100885 persons (all Incremental Employment generated after February 2006)

(B) DIRECT Employment in Private/State Govt. SEZs which came into force prior to           SEZ     Act, 2005 (as of 30.6.08):

      48988 persons (Incremental employment generated since Feb.  2006: 36,250  persons)

DIRECT Employment in 7 SEZs established by the Central Government (as of 30.6.08)  

   1,99,330 persons (Incremental employment generated since Feb. 2006: 77,094 persons)  

 Private Investment in Special Economic Zones

 (Source: http://www.sezindia.nic.in/HTMLS/visiblegains-sez.html)

Total investment in Special Economic Zones as of 30.6. 2008: Rs. 81093 crore

Incremental investment since February, 2006: Rs. 77058 crore

Investment in notified SEZs (as of 30.6.08)

Rs. 73348 crore (all Incremental Employment generated after February 2006))

Investment in Private/State Govt. SEZs which came into force prior to SEZ Act, 2005 (as of 30.6.08) 

Rs. 3701.91 crore   (incremental investment generated since Feb. 2006 is Rs. 1946 crore)

Investment in 7 SEZs established by the Central Government (as of 30.6.08.)

Rs. 4043.28 crore (incremental investment generated since Feb. 2006 is Rs. 1764.08 crore)

 Exports in Special Economic Zones

(Source: http://www.sezindia.nic.in/HTMLS/visiblegains-sez.html)

Physical exports in the year 2007-08 accounted for 84% of the total turnover of SEZs

381% increase in exports over four years (2003-04 – 2007-08)

Year

Value  Of Physical Exports  From SEZs (Rs. Crore)

Growth Rate (over previous year)

2003-2004        13,854      39%

2004-2005        18,314       32%

2005-2006        22,840      24.70%

2006-2007        34,615      52%

2007-2008        66,638       92%

 

 Tax and other incentives being offered to the SEZs:

As per circular  Epces circular no. 39 dated 28-2-2007, issued by EXPORT PROMOTION COUNCIL FOR EOUs & SEZ UNITS (Ministry of Commerce & Industry, Government of India)

SEZ units are provided exemption from Income Tax under Section 10AA of the Income Tax Act, as given in the 2nd Schedule of the SEZ Act, 2005. Section 10AA of the Income Tax Act, as given in 2nd Schedule of the SEZ Act, 2005 has been amended by the Finance Bill, 2007. The Finance Bill, 2007,

 Accordingly, Tax benefit has been provided only for new units in Special Economic Zones : Sections 10AA of the Income-tax Act, provides that in computing the total income of an entrepreneur, from his unit in the special  economic zone, the following deduction shall be allowed:—

 (i) hundred per cent. of profits and gains derived from the export made in eligible business for a period of five consecutive assessment years beginning from the year in which such business commences;

(ii) fifty per cent. of such profits and gains for further five assessment years and thereafter;

 (iii) an amount not exceeding fifty per cent of the profit debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account to be created and utilized for the purposes of the business in the specified manner, for the next five consecutive assessment years

 Based on the above regulations, Sec. 10AA of Income Tax Act prescribes the following formula for computation of such Income tax benefits:

 Profit of the SEZ unit    x      Export Turnover of the SEZ unit

————————————————————————

Total Turnover of the Business of the Assessee

 Case let (one):

  Mr. Entrepreneur is having three manufacturing units.  Unit one- established in SEZ, unit-two and unit-three are situated in DTA (Domestic Tariff Area).  The profit and turnover figures of the three units are as follows:

 Year (2008-09)   Unit – one (SEZ)         Unit – two (DTA)          Unit – Three (DTA)

Net Profit              Rs. 122.50 Lakhs      Rs. 80.70  Lakhs           Rs. 92.60  Lakhs

Export Turnover   Rs. 630.00 Lakhs               Nil                                 Nil

DTA Turnover                   Nil                  Rs. 340.00 Lakhs           Rs.  365.00 Lakhs

Calculation of Tax Benefits:

 Exempted Profit =       Profit of the SEZ unit   x      Export Turnover of the SEZ unit

                                 ———————————————————————

                                   Total Turnover of the Business of the Assessee

                            =        122.50     x    630.00

                                 —————————

                                    (630 + 340 + 365)

                            =       Rs. 57.81  Lakhs    (47.19%)        

 

  Case let (Two)

 Ms. Smart Lady is having only one manufacturing unit in SEZ.  The profit and turnover figures of the unit are as follows:

Year (2008-09)                Unit – one (SEZ)

Net Profit                         Rs. 122.50  Lakhs

Export Turnover              Rs. 630.00 Lakhs

DTA Turnover                          Nil

Total Turnover                 Rs. 630.00 Lakhs

Calculation of Tax Benefits:

Exempted Profit =       Profit of the SEZ unit  x   Export Turnover of the SEZ unit

                                 ———————————————————————

                                   Total Turnover of the Business of the Assessee

                           =        122.50     x    630.00

                                 —————————

                                                630

                            =       Rs. 122.50  Lakhs         (100%)

  Critical analysis of the two cases:

Section 10AA of the Indian Income Tax Act 1961 allows exemption in respect of export profits  of a unit located in a Special Economic Zone (SEZ), as per the provision, export profit required to be calculated for the purpose of exemption, with the reference of the total turnover of the assessee. This has resulted in discriminatory treatment of the assesses having units located both in SEZ and the Domestic Tariff Area (DTA),  in compression with the assesses having units located in the SEZ only.

Valuable suggestions:

 India is one of the fastest growing economy of the world.  Concept of SEZ is becoming a major pillar of the economic structure.  So far, SEZs  have provided job opportunity, contributed in foreign exchange reserves, developed infrastructure etc.   In future, it is advisable to provide more fiscal and non-fiscal  incentives to the developers as well as entrepreneurs,  Tax  incentives and subsidies, should be provided on rational basis.  Continuous planning and execution of the plans, periodic review and appraisal of the plans are required to be more strengthened. Overall cooperation and dedicated services are required from merchant exporters and manufacturer exporters, business and industry as partners of Government in the achievement of its stated objectives and goals           

In order to obviate the need for litigation and nurture a constructive and conducive atmosphere, a suitable Grievance Redressal Mechanism should be established, which, would, hopefully reduce litigation and further, it will create a healthy atmosphere among developers, entrepreneurs and government

 Conclusion:

 SEZs can provide a generic framework to develop automatic systems that offer comprehensive approaches and tools to assist developers and entrepreneurs  to establish their own standard establishments in less time and with lower costsTo overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, it is necessary to continue study considering the international scenario of this concept, as it is done now, and suggest form time to time and in the light suggestions from individuals and participation entrepreneur and Government should revise and update it policy not only to sustain its share in the development but also to increase it in the interest of the control and development of country as a whole.

 

 

 

 

 

 

 

 

 

 

 

 

 

What Exactly is MRO?

Maintenance, Repair and Overhaul or MRO is a multi-billion dollar industry which works on authorization rules to deliver a safe  Aircraft operation and to assure reliability and availability of customer fleets.It encompasses any indirect goods and services that are vital to ongoing operations supporting facility maintenance and operating needs.

Approach to MRO

 

Ø      Analyze  whole operation, uncovering inefficiencies and bottlenecks.

 

Ø      Simplify processes with advanced technologies.

 

Ø      Electronic Parts’ catalogue Management  to make ordering simpler which entails

 

ü      Advanced search capabilities

 

ü      Database management functionality

 

ü      Global value standardization

 

ü      Web-based, remote access

 

ü      Ability for users to maintain catalogue  to predefined schemes/templates

 

ü      List-making capabilities

 

ü      Shortage Reporting

 

ü      Storage and display of attachments such as graphics, documents and hyperlinks

 

ü      Eliminate duplicate items

 

ü      Reduce inventory carrying costs

 

ü      Standardized purchasing I

 

ü      Improve procurement leverage for volume buys and reduce spot buys

 

ü      Eliminate false stock outs

 

Ø      Consolidate transactions across all functional areas.

 

Ø      Redesign storeroom and index each and every parts.

 

Ø      Utilize advanced forecasting tools to reduce inventory costs.

 

Ø      Recommend the best suppliers to optimize material performance and price.

 

Ø      Integrate the best suppliers into automated processes.

 

Ø      Provide enterprise visibility and reporting for better management decisions.

 

Ø      Implement a warranty and asset management program to reduce repair/replacement costs.

 

Ø      Identify continual improvement opportunities for improved efficiencies and lower costs.

 

Ø      Manage MRO supply chain

 

Ø      Consolidate support base for supplies for typical MRO categories e.g. Abrasives, Adhesives & Compounds, Chemicals, Cutting Tools, Data-Comm , Electrical ,Electronics Fasteners ,Filters ,Hand & Power Tool ,Hydraulic, Industrial Supplies, Instruments, Janitorial , Lab Supplies, Lubricants & Oils ,Machinery & Parts ,Material Handling, OEM/Critical Spares ,Office Supplies, Packaging ,Paint & Paint Equipment ,Pipes, Valves & Fittings, Pneumatic, Power Transmission ,Safety ,Services, Welding etc.

 

Market Size of MRO:- 

 

Global Market Size of MRO is approx. 50 Billion US dollar for  global active fleet of nearly 39,000 fixed and rotary wing aircrafts. The global aircraft Maintenance, Repair and Overhaul (MRO) market is highly fragmented with over a hundred participants. Inclusive of military aircraft MRO, the total amount spent on MRO exceeds the value of new aircraft production. China and India will, with their rapidly expanding fleets, provide the biggest growth. China’s MRO spend, for example, is expected to increase from the current three percent of world total to six percent by 2016, according to BACK Solutions. AeroStrategy predicts a 5.1 percent annual growth rate in the Asia Pacific through 2015 and a market value exceeding $14 billion. India, which expects to see the size of its fleet triple over the next 10 years, has joined with China in becoming a fast growing market.

 

MRO Solutions for Every Need

It is important to  recognize the unique requirements of each operating site in the organization and the part that each can play in rolling out a successful solution.  In order to reap the benefits of a streamlined MRO supply chain, a careful thought process is required to design comprehensive following MRO solution, in combination, to adapt to the requirements of each site, ensuring broad program support

 

Outsourced Solutions — To manage all aspects of MRO supply chain so that organization can focus on its core business. 
Enterprise Solutions — To  link all of plants, systems, processes, and people through a single, enterprise-wide solution, operating through a common platform.
Hosted Solutions — To deliver an ASP-based solution that offers state-of-the-art technology, processes, and support for existing personnel of the organisation.
Productivity Program — To thoroughly evaluate operations and uncover new ways to boost productivity and savings.
Inventory Management — To forecast the need for supplies and replenish them as needed, optimizing the  inventory and reducing related costs by as much as 40%. 

The Benefits of a Streamlined MRO Supply Chain

Although MRO supplies may cost only a few rupees per piece, supply chain inefficiencies — such as inventory surplus, decentralized procurement, transaction discrepancies, and poorly managed stockrooms — rapidly adds up cost. Eventually, productivity and the  bottom line suffers. MRO solutions helps organization to  streamline  entire supply of the organisation:

 

Increase Cost Savings — To eliminate excess and obsolete inventory, reduce overall MRO supply costs, and more.
Improve Staff Productivity — To eliminate time lost searching for and ordering materials. Stock items are automatically replenished as needed and non-stock orders are processed within 24 hours.
Make More Informed Decisions — To view the “big picture” with enterprise-wide MRO-specific data, detailed historical reports, and a custom electronic catalog, all on a common platform.
Benefit of Technology — No confusion, no tiresome efforts involved in material management, which is the primary factor for MRO success.  e-commerce solution, inventory management technology, hand-held devices for a mobile workforce, RFID are the few examples.

 

 MRO Approaches by Global Leaders

Lockheed Martin Aeronautics

Ø      MRO should mean  be a gentle correction. It’s not MRO for the Aircraft; it’s sustainment.

Ø      Modularity of the Design to reduce support dependency on MRO with the goal of minimizing and/or eliminating failures.

Ø      For failures that cannot be eliminated, the fault will be isolated quickly and timely corrective actions for repair at the unit level will be provided , keeping Aircraft flying.

Ø      To move toward this sustainment, prognostics and health management information systems will be relied on. The system supported the F-35 Aircraft, with the onboard systems recording and analyzing data from initial tests through flight testing. The data will be critical for fleet operation.

Ø      Focus is not on repair of a sub-system or unit. Instead, the specific part is replaced in the field and the decision to repair or permanently replace is made outside the operational envelope. This strategy minimizes the need for extensive skill training at the unit level.

Boeing

Ø      Boeing uses  CribMaster, an inventory management system created for managing tools and inventory incorporating bar coding and a collection of manned tool cribs and point-of-use dispensers to monitor tool inventory and usage, track consumption, issue purchase orders and provide numerous reports at the touch of a button.

 

Ø      The system electronically tracks and gets instant response, keep track of who’s got what tool, where it is all required information in a matter of seconds,

 

Ø      The process saves total time on the nearly 1,000 issues, returns and counts Boeing averages every day. Information, tied to the bar codes on 25,000 different types of tools housed in 26,000 bin locations, enabled to keep track of what’s in the crib and, using order point data, order and receive supplies. User receives this information directly from CribMaster and places the order in almost a paperless system.

 

Ø      Boeing decided in of late  to acquire the largest independent aviation parts and services company, Aviall, and introduce its comprehensive GoldCare maintenance package, which is a  new business model…”

 

Ø      GoldCare is a per-flight-hour maintenance program that is centrally managed in Seattle and can include the gamut: line, component and heavy maintenance. It provides e-enabled environment, or “complex IT system,” that assures the flow of secure maintenance data among the concerned entities: Boeing, its suppliers, the maintenance provider and the operator. Among other advantages, this data flow gives component providers a fleet-wide view of how a component is performing, giving them time to design fixes, if necessary, earlier than with  manual process

 

Ø      Cranfield University, Britain’s premier postgraduate, research-intensive university and The Boeing Company have signed a collaboration agreement to create an Integrated Vehicle Health Management (IVHM) system.

 

Ø      Integrated Vehicle Health Management enables the health of a vehicle to be monitored and assessed. Sensors distributed throughout the vehicle collect data on the condition of components and subsystems, while on-board processors assess their health and predict possible deterioration and future life.

 

Ø      This data and resulting information can be used to improve maintenance, extend the life of both the whole vehicle and individual components, improve vehicle readiness and availability, and reduce operating costs.  For any operator, use of IVHM can provide long-term cost benefits and advantages over competitors.

 

Ø      It will take existing concepts of Maintenance and Repair and Overhaul (MRO) one step further. It differs from those concepts in that it looks at the whole vehicle, regularly sensing and evaluating the vehicle operation and updating a ground based operations control centre to enable better decisions on the operation schedule and effectiveness of a fleet of vehicles.

AIRBUS

Ø      KLM Engineering & Maintenance and Air France Industries entered into partnership which would take a further step by establishing a joint, global marketing and sales network. Meanwhile, Lufthansa Technik and Air France Industries announced a joint component support solution for operators worldwide of the military A400M. Details have yet to be ironed out, but the program could be comparable to the two MROs’ partnership in supporting the Airbus A380.

 

Ø      Airbus is strengthening its relationship with MRO service providers in order to improve the quality and competitiveness of maintenance services for Airbus customers. This objective will be reached through a dual approach to the way Airbus deals with MROs:

 

ü      The MRO Network with its processes for contiuous performance benchmarking and improvement actions.

 

ü      Increased support to MROs generally – making it easier for them to provide maintenance services to their Airbus customers.

 

Ø      The scope and the size of the Airbus MRO Network will be driven by the worldwide customer demand for maintenance services.

 

Ø      Other criteria which identify candidates for the MRO Network are as follows:

 

Ø      Broad experience in Airbus airframe maintenance, for the different aircraft types

 

Ø      Additionally, experience in component maintenance with related spares services

 

Ø      Global and/or regional coverage

 

Ø      A choice of independent and airline affiliated MROs in each region

 

Ø      Airbus will communicate on the capabilities of the Network members, measure

 

Ø      customer satisfaction on their performance and where appropriate identify areas for MRO

 

Ø      improvement plans.

 

Ø      Airbus MRO support services, including technical data, spares recommendations and

 

Ø      consultancy, will be on offer to those MROs who wish to develop their capabilities.

 

Ø      MRO Network members enter into an Agreement with Airbus, which commits them to

 

Ø      participate in the following joint processes:

 

Ø      Based on information regarding Airbus maintenance capabilities provided by the MROs, Airbus has produced a Network Catalogue, designed to assist airlines outsourcing their fleet maintenance.

 

Ø      Airbus has developed the DMC Toolset to collect from Networkmembers, maintenance related data including: down-time,man-hour and materiel consumption, component reliability and repair costs.

 

Ø      Confidential feedback is provided to MROs showing their performance against the average and best performing MROs for a particular maintenance event.

 

Ø      Based on the same principles as the Airbus Customer Satisfaction Improvement Programme (CSIP), a survey of MRO customers is key to ensuring continuous improvement of the maintenance services they receive.

 

Ø      Airbus provides confidential feedback to MROs on their customers’ satisfaction compared to the average and bestperforming MROs in the Network.

U.S. Army Aviation and Missile Command

Ø      Lean Six Sigma techniques were introduced in early 2004, to optimize MRO and reduce operating costs in the shortest amount of time. The streamlined operations in MRO helped the Army avoid $40.2 million in needless expenditures

 

Ø      The team applied Lean MRO concepts to reduce scheduled-phase maintenance of the UH-60 Blackhawk helicopter from 38 days to 18 days. This improved the maintenance process so much that three helicopters were able to be transferred from the training effort at Fort Rucker to operational units in support of the war effort — meaning the Army didn’t need to buy three new planes, a savings of about $30 million.

 

New Technologies

 

Lockhead

 

Ø      Prognostics and health management information systems

 

Boeing

 

Ø      CribMaster

 

Ø      GoldCare

 

Ø      Integrated Vehicle Health Management (IVHM) system

Airbus

Ø      DMC Toolset

 

Recent Trend

 

Ø      MRO Service Providers to Focus on Providing Quality Service Deliverables at Low Costs

 

Ø      Fleet operators are increasingly trying to identify service providers that can provide total service packages including material and parts supply, integrated information system process, and infrastructure. MROs  are likely strive to provide the entire gamut of services.

Ø      As a result of competition, MROs would do well to analyze the prevalent trends and initiate cost-effective policies in order to initiate  quality service deliverables at a lower cost. Enhanced customer value benefit programs will not only generate increased income but also bring forth long-term service contracts. Moreover, the turn-around-time of maintenance and service is becoming  the prime focus for all MROs to sustain the existing client base.
Ø      In a notable trend, the last few years have seen an out performance in the MRO sector. A detailed examination of the out performance trends has shown the emergence of very secular growth which is set to continue till foreseeable future in respect of following:-

ü      In-house parts repair to minimize engine overhaul cost

 

ü      Repair to minimize parts  scrappage

 

ü      Engine parts exchange

 

ü      In-house capability for repair/overhaul of engine accessories, while the engine is in-work, to shorten turn around time and provide a more cost effective service.

 

ü      Advanced processes and repair techniques developed by specially qualified engineering.

 

Ø      The worldwide fleet size is showing steady growth. It is forecasted 4.1 percent annual growth in new aircraft deliveries over the next 10 years.

Ø      The supply-chain inventory holdings are shifting from the operators and becoming more supplier-owned. Evidence of this trend is the fact that the supplier-owned inventory grew from 25 percent to nearly 40 percent since 1997, a 60 percent increase.

 

Ø     
MRO unit costs are shrinking. There has been a 15 percent reduction in MRO unit costs since 2001, and the decline is expected to continue. The forecast and analysis firm said the unit cost per 1,000 aircraft seat miles (ASMs) has declined from nearly $16 in 2002 to little more than $12 today.

Ø      The engine maintenance spend is expected to be the biggest growth sector over the next 10 years. The sector represents more than 35 percent of MRO market.

Ø      The amount of outsourced maintenance is expected to maintain steady growth.

Ø      Everything but line maintenance will be outsourced and definitely engines and components.

Ø      The focus must remain on efficiency in maintenance support. The carriers have sought efficiency by retiring older, inefficient aircraft and engines, simplifying their fleet mixes and developing a more efficient inventory strategy. Repair facilities are being pressured to minimize the out-of-service time of aircraft, components and engines, as well as to improve quality and reliability, and reduce labor costs. The latter savings can be achieved by making maintenance processes more efficient, reducing rework and eliminating waste, seeking service providers in regions with lower labor rates, and matching labor skills to the work requirement.

 

Ø      These trends add up for surge in MRO market.  It is projected  3.6 percent per annum growth in the MRO market, and it will achieve annual revenues of $55 billion by 2015. More than growth, however, with industry consolidation, OEMs entering the maintenance arena and PMA parts gaining acceptance, the market has entered a dramatic period of transition.

Indian Scenerio

The boom in the aviation industry has set the stage for huge growth in the aircraft maintenance, repair and overhaul (MRO) market. Both government and private equity organisations are increasing investment in this area with the intention of providing reliable and cost-effective maintenance services to fleet operators.

 

India is set to drive massive growth in the aviation industry over the next few decades. Global investors are flocking to the aviation industry and are displaying particular interest in the Indian market.

 

The MRO market in India is set to truly take off. This, although will attract many private players, should be considered more of a opportunity for companies like HAL since it has the longest experience and best facilities in India.

 

In addition, 2006 has seen the signing of some large outsourcing contracts, for example, Air Deccan with Lufthansa Technik.

 

Similarly Deccan Air has consolidated its position as Servicing of Bell Helicopters in India.

 

Approach to MRO from Indian perspective

 

Indian MRO companies which are carrying out engine maintenance, component maintenance, line maintenance, Maintenance of Transmission and other rotables,  airframe maintenance, and modifications have developed threshold competencies that satisfy both end-user needs and regulatory requirements. However, the entry of newer participants in this high-growth market is likely to lead to increased competition in future products. This will compel Indian companies to proactively invest in expanding its competencies even further. They need to work innovatively in both providing services and creating competitive pricing strategies

 

So it should be imperative for Indian companies to diversify to new MRO product as a long term objective. Cutting Edge technologies and  upgrade in facilities will enable them to support the pitch in this direction. 

 

Developing a total solution portfolio is a key success factor.  Competitive Pricing Combined with High Quality Critical for Success. Indian MRO companies should be  able to offer a comprehensive portfolio of service products and  suitably position itself as long-term strategic partner to the operators adopting the favoured outsourcing strategy.

 

Vision in consolidating Technology, New Projects, broad based Outsourcing, ERP etc. are sine quo non for  competitive edge.

 

Works ahead for Indian MRO Companies:-

·        In-depth discussion on future opportunities  and  devise appropriate strategies

Revenue forecasts to help in understanding present and future demand in the MRO market

·        Exhaustive Market forecasts  and analysis of competitive dynamics to help in identifying the growing MRO demand

Macro and micro industry sector analysis
MRO Market drivers, restraints and challenges
MRO market trends
To get across strategic recommendation from experts.
To formulate growth strategies to expand into related businesses
Preemptively redefining the core business during  outsourcing and market turbulence
To identify and address common mistakes resulting from misaligned corporate strategies
To firm up growth management strategies through continuous partnership

 

Footage by IMAK News & entertainment Pvt Ltd. Showcased here are some of the latest models of Mercedes for the Indian Market. The stall includes an amazing Concept Car and the latest S Class Mercedes. A treat for the eyes.