Svipja's Offset Practice

Our Offset Practice helps high-tech Defence and Aerospace Industry in offset projects. www.svipja.com/ refers.

We also empanel Offset Consultants with Industry knowledge in A & D. You could fill Your 'Resume' on http://www.svipja.com/careers.php , or 'Join as a Consultant' on www.indiandefenceindustry.com/


Steps in Our Offset Process

Step 1: Acquaint Yourself first on Offset business. Please visit www.IndianDefenceIndustry.com , its connected Blogs and www.svipja.com in addition to other subject matter elsewhere. Offset Partnership and projects go thru rigorous 'Due Diligence' / 'Gate Reviews' by Vendors / Obligors.

Step 2: Register online on www.IndianDefenceIndustry.com using Internet Explorer to be part of the database of the Defence Industry. We are developing a consortium of MSMEs globally with India focus for them to participate in Aerospace and Defence direct and indirect Offset Projects.

Step 3: Obtain Industrial License, if required.We take Advisory on Products / Services to target, Capacity Creation, JV and Capital tructure incl FDI & Technology Agreements, etc.

Step 4: Become Industrial Sector Partner (ISP) of Svipja / India. We will guide the ISP firms go through qualified vendor registration process for Supply Chains of aerospace & defence firms.

Some of these steps could be attempted concurrently.


1. Yearly Membership Fee for Registering on the Site and using e-Marketplace Engine for Buying/Selling, and accessing Info System, is as indicated in Tariffs on the Site. Fee is variable.

2. Separate Fee for Offset Consulting / Industrial Co-operation would apply. Contact svipja@gmail.com for further details.

3. Addl Fee will apply in case of market research, study and other services.


1. Svipja provides guidance to the Indian ISP on project suitability and document/plan preparation for the Gate Review Process, and it's Presentation as required.

2. Svipja does not take responsibility for offset fund allotment to ISPs. This is decided by A &D Major Company based on the capability of the ISP to meet the needs of the A & D Major.


Friday, July 17, 2009

Offsets Contracts of Over Rs 7,500 Crore Signed in Defence Deals

Government on wednesday said contracts worth more than Rs 7,500 crore have been signed under the offsets clause of the Defence Procurement Procedure (DPP).

"Offsets contracts of more than Rs 7,500 crore have been signed till date. Contracts between foreign suppliers and Indian defence companies are resulting is setting up of manufacturing, design, testing and service centres in the defence industry," Minister of State for Defence M M Pallam Raju said while replying to a query in the Rajya Sabha.

Under the Offsets Clause, foreign suppliers winning Indian defence contracts of over Rs 300 crore are required to invest a minimum of 30 per cent of the deal's worth back into the Indian defence Industry. Replying to another query, Raju said the Heavy Vehicles Factory in Avadi would be overhauling 120 T-72 tanks in the present fiscal.

Brigadier (Retired) Sukhwindar Singh


(A Global Solutionfor Offsets)

Credit: http://economictimes.indiatimes.com/articleshow/4781103.cms

Wednesday, July 8, 2009

Some Excerpts from Interview of Shepherd Hill, The President of Boeing International

Some of Boeing’s largest contracts in India require a 30-50% offset. Do you see such compulsions being waived in the near future?

We have offset requirements traditionally around the world and take them very seriously. On the BCA side, related to Air India, our offset requirement is to the tune of $1.7 billion. We submitted a plan and we will meet that offset requirement. On the defence side, we’ve submitted a plan for P-8 (military aircraft currently being developed for the US Navy) as well as MMRCA. We’ll put plans together to meet the offset requirements. We would, however, like and continue to encourage our Indian customers to look at the best means of designing an offset program. Right now, the Indian government has one and we’ll meet that. We, however, do believe in the fact that the program can be modified to get India more of what it wanted with slight changes to the existing offset requirements.

How’s the Boeing-Tata JV doing? Of the $500-million aerospace component work in India (that’s the pact), how much has been utilised?

Well, we haven’t put a value to the JV but it could be up to $1 billion. But the floor beams is in place. It has been affected somewhat by the delay in the 787 program. But this is going to be one-of-its-kind. It will be new to India, and unique around the world — sign wave floor beams of titanium — it takes out the weight and strengthens floor at the same time. Now that’s an example of how a joint venture can provide value to India, and India can provide value to Boeing.

So when do we get to see the 787?

The current schedule shows the first flight in the second quarter of 2009, and the first delivery in the first quarter of 2010. Boeing has been in India for 60 years. But why has it taken so long to see co-development between Boeing and its India division or other Indian companies? Sixty years ago, India didn’t ask for co-development. They were happy to buy DC-2s and DC-3s and 707s. The world has changed in India. So the prices in terms of expectations have changed. There have always been collaborations in India. In 2007-08, there were nearly $100 million in terms of collaboration. In 2009, there will be almost twice that amount. In 2012, there will be $500 million worth of manufacturing, IT and R&D. We’ll be investing in and partnering with Indian companies. You have the floor beam program, then the collaboration with HAL in terms of lean processes, program management and best practices and work content going into HAL. We believe there will be more tangible programs over time. Were we to win the MMRCA program of 126 aircraft, 108 of those will be co-built and co-manufactured by HAL. That’ll be a significant sharing. The manufacturing capability of HAL will transcend even what they’ve had in the past.

What kind of aerospace manufacturing work is being done with HAL as part of the $1 billion MoU Boeing has signed with them in 2007?

Well, it’s everything from component parts to manufacturing of larger pieces and ultimately, its systems integration. Ultimately, they have to assemble the F-18. So it goes beyond the actual manufacturing of parts.

So how much has diplomacy got to do with more co-development work?

I think that the very fact that we are in the defence side of the business is factored into the warming relationship between the US and India that has occurred in the past six years and as a direct result of the Bush administration’s priority in dealing with India as a strategic partner. I think that will carry forward in the Obama administration, the enduring common interests of the two largest democracies of the world.

Is Boeing planning to make India a manufacturing base anytime soon?

No, we won’t go it alone. I see continued work with partners on large-scale component manufacturing. I don’t see Boeing setting up a manufacturing facility here.

Brigadier(Retired) Sukhwindar Singh


(A Global Solution for Offsets)

Credit: The Economic Times