There is a talk in India's defence circles that when Reliance Industries Ltd (RIL) chairman Mukesh
Ambani hired Vivek Lall from Boeing more than a year ago to launch RIL's aerospace and homeland security businesses, India's richest man had a dream: to build an entity like Boeing. There are others who say Ambani dreams not just big, but bigger — he wanted to build an aerospace company bigger than the world's best. Whatever the talk may be, the "quiet aggression" from India's largest private-sector company in forging ahead with its plans in aerospace business is remarkable, says a Mumbai-based consultant who has watched RIL for decades. "They are ready for the long-haul game," he says asking not to be named because he isn't authorised to speak to the media. ET reported on Saturday that RIL has sought an industrial licence to make aircraft parts and develop aerospace technologies. The company has filed an application with the department of industrial policy and promotion ( DIPP), under the ministry of commerce and industry. As the report says, the objective of the new entity, called Reliance Aerospace Technologies Pvt Ltd, is "to design, develop, manufacture, equipment and components, including airframe, engines, radars, avionics and accessories for military and civilian aircraft, helicopters, unmanned airborne vehicles and aerostats". The report quoted executives close to the matter as saying
that RIL is expected to invest close to $1 billion in its aerospace business in the next few years. The Rs 44,000-crore conglomerate is also looking at hiring more than 1,500 people in the new business, the report said. Idea of a Hub Creating a manufacturing hub is at the heart of Mukesh Ambani's ambition in the aerospace business, says the Mumbai consultant. "He seems to be focusing on aircraft parts in the short term and on developing new technologies in the long term," this person said. He also felt RIL, now ranked No. 99 on the Global Fortune 500 Companies list, is likely to emerge as a "predominant player" in the aerospace and defence segments "to the extent that its other businesses might not be as important in a decade from now". RIL executives refuse to be drawn into making forecasts about the chunk of its revenues that would come from defence projects a decade or so later. However, they have long maintained that aerospace is a "significant segment" for the company — both in the aircraft parts and the aircraft building business. They have also said the highly networked and deep-pocketed company clearly has a natural edge in such cost-intensive segments Source: Link
