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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/

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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.

Commercials

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.

Conditions

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.

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Thursday, November 29, 2012

Saab in JV with QuEST


Saab will set-up aero-structure parts and assembly venture in Belgaum/Karnataka/India. QuEST will hold 74% in the JV with Saab 26%. These parts/assemblies are targeted at Boeing and Airbus acs.

QuEST already provides engineering services to Rolls Royce, GE and Airbus amongst others.

The Partners will initially invest USD 10 m in the JV. The JV is likely to be operational by mid-2013.

Saturday, November 3, 2012

New Defence Procurement Procedure likely in early 2013

The IDS deputy chief urged industry to develop SMEs, to produce the components going into larger and more complex system

He said the new DPP would liberalise defence procurement further. This conformed to industry expectations, as it has been the trend in successive modifications to the DPP in 2005, 2006, 2008 and the currently valid DPP-2011. Matheswaran urged private industry to focus less on the high value, high technology weapons platforms (eg, aircraft and tanks) on which the big defence money is spent. Instead, he suggested, private industry should emulate the automobile parts industry by setting up manufacturing units that were part of a global supply chain. These small units would form the backbone of a countrywide defence industrial base.

In the MoD’s planning, such a defence industrial backbone is crucial for maintaining, repairing, overhauling and upgrading the complex defence platforms that are currently being bought from abroad and manufactured under licence in India.

“Rather than focusing on large weapons systems integration and manufacture as the only way, I think we need to break down the supply chain into many component parts, so that you become part of a global supply chain. If you look only at the Indian military as the only source of your order book, then you’re not going to have continuous orders for any length of time,” said Matheswaran.

The IDS deputy chief urged industry to develop small and medium enterprises, to produce the components going into larger and more complex system that would eventually be built by large conglomerates like the Tatas, L&T and the Mahindras.

Highlighting the “enormous” opportunities for private industry, Matheswaran pointed out the scope for India’s capital expenditure to grow from its current Rs 80,000 crore. “Our defence budget is still much less than the global average of three per cent of GDP. We haven’t exceeded even two per cent of the GDP,” he said.


Pipavav Defence to get investment from SAAB of Sweden


Sweden’s Saab AB will invest Rs.201 crore (250 million Swedish kronors) for a stake in Pipavav Defence and Offshore Engineering Co. Ltd, the first strategic investment made by a global defence company in an Indian shipbuilder focused on defence production.

Pipavav Defence has signed a stock subscription-cum-shareholders agreement with Saab for the sale of 24.5 million shares at a price of Rs.82 a share. The transaction is at a 7.75% premium to the average of Pipavav Defence’s.

Saab will own 3.5% of Pipavav Defence after the transaction is completed and will have an option to increase it to 10%.