DEF+CONTRACT

DEF CONTRACT

+INDIA

2011INDIA

2011

NSIC-FISME

International MSME Sub-contracting

& Supply Exhibition for

11~13 March 2011

Hyderabad, India

Defence, Aerospace and

Homeland Security

Stefan Zoller Defence and Security Chief

European Aeronautic Defence and Space Company (EADS)

"The most booming market for defence that has not already been captured… is India"

India's new defence policy opens up $100 bn marketReuters 2009

National body of MSMEs in India A Govt. of India Enterprise

Jointly organized by

Ministry of MSMEsGovt. of India

Sponsored by

ISO 9001 : 2008

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India's new defence policy opens up $100 bn market- Reuters 2009

"India next to China is one of the big growth hubs for the aviation industry.. would require more than 1000 aircrafts in next 20 years"Tom Enders, CEO , Airbus

“Indian aerospace industry is witnessing three main trends – fast growth in civil aviation, development in manufacturing (especially in the private sector), and emergence of India as an aerospace technology-sourcing center”- Global Aerospace Market Forecast (2006-2009), RNCOS report

Aerospace Sector

The buoyancy is not just limited to defence. India is one of the fastest growing aviation markets in the world. With the liberalization of the Indian aviation sector, the industry has witnessed a transformation with the entry of the privately owned full service airlines and low cost carriers. The private carriers account for around 75% share of the domestic aviation market. A burgeoning middle class, driven by an economy growing at 8.5 percent a year, has boosted demand for air travel phenomenally. The Indian aviation market is forecasted to grow by 25% an year forcing the government, airlines and aircraft manufacturers to work overtime to keep up with demand.

Mr Praful Patel, the Union Civil Aviation Minister of India has recently stated that the Indian aviation sector will become one of the top five civil aviation markets in the world over the next five years. India currently ranks ninth in the global civil aviation market. The country has 454 airports and airstrips, of which 16 are designated as international airports. Investment opportunities of US$ 110 billion are being envisaged up to 2020 with US$ 80 billion towards new aircraft and US$ 30 billion towards the development of airport infrastructure, according to the Investment Commission of India.

Mr. Stefan Zoller, Defence and Security Chief of EADS (owner of Airbus) has recently said, 'the most booming market for defence that has not already been captured is India'.

Responding to their assessment of Indian demand of more than 1000 aircrafts in next20 years, EADS is already setting up an industrial base in India.

The space industry is also keeping pace with the growth of aviation. The Indian government's space budget of $1.26 billion for 2010 has witnessed a jump of 22% from that of the previous year and the spending is also expected to increase further by an average of 15% annually over the next four years to reach $2.17 billion by 2014. In terms of space budget and technological capabilities, India is currently ranked sixth globally behind the US, Europe, Japan, Russia and China.

Homeland security market

The homeland security market is also experiencing explosive growth. The security environment has become increasingly challenging in last decade in around the world in general and in South Asia in particular. The demand for security equipment and services has gone up manifold with increased public and private spending. India 's Union Home Minister, Mr. P. Chidambaram has recently reiterated India's commitment to increase its Homeland Security budget by a massive 35% to over $29.52 billion in 2009-10. (Airports security alone is projected at over $3.2 billion by 2016 growing at a compound annual growth rate (CAGR) of 5 per cent). Indians will be investing another $12.3 billion into the private security industry by 2016.

Indian Defence Market

India is the 10th largest defence buyer in the world. With an estimated 2.5 per cent share of global defence expenditure, it is also among the fastest growing markets. A recent report puts India's current defence expenditure in range of US $32 billion which is set to rise to an estimated $42 billion by 2015. The capital expenditure on new weapon platforms will also rise from the current $13.04 billion to $19.2 billion in 2015. For the XII-Five Year Plan (2012-17), India's plan expenditure on weaponry is pegged at $120 billion.

Since 2001, the defence industry has been liberalized and opened to private sector with participation up to 100% and allowing Foreign Direct Investment (FDI) up to 26%. The private sector defence supplier group is composed of around 5000 companies (large and MSMEs). It accounts for around 20% of Indian defence market in value terms: rest of the requirement is met through imports. With new policy-set, the government has allowed local companies to freely bid for projects involving tanks, artillery, aircrafts etc. The government has set a target for procuring 70% its defence requirements from indigenous sources. Experts peg the market opportunity to over $ 100 billion.

Indian Defence Market Indian Defence Market

Aerospace Sector

Homeland security market

DEF+CONTRACT INDIA 2011

DEF+CONTRACT INDIA is an MSME Sub-contracting & Supply Exhibition for Defence, Aerospace and Homeland Security. It aims to be a platform for finding right partners, subcontracting opportunities and forging alliances. This 3-day intensive interaction of MSMEs for business development with the leaders of defence and aerospace industry supply-chain together with industry partners, suppliers and technologists provides a setting that cannot be missed.

Benefits to Exhibitors

To Foreign firms/ DPSUs/

Indian contractors/ Indian MSMEs

• Exhibit your strengths and come face to face with buyers

• Foreign participation/ visit of delegations facilitated by fore ign embass ies and defence PSUs

• Dissemination of information on emerging sub-contracting opportunities through presentations of large domestic/ foreign buyers during seminars

• All supporting institutions at one place

• Most economical exhibiting option- thanks to support from Ministry of MSME

• Coming face-to-face with India's backbone : MSMEs

• Identify dependable equipment or component supplier or partner

• Leverage 'frugal engineering' skills of Indian MSMEs for innovation and competitiveness

• Forge alliance with MSMEs to exploit emerging business opportunities in public or private domain

• Network with players in entire supply chains: manufacturers, specialized service providers, logistics, potential collaborators, consultants, agents etc

Visitors

• Representatives from Private and Public Industries engaged in business of defence, aerospace and homeland security

• All public procurement agencies in the three areas

• Foreign delegations

• R&D Institutions, Universities and Technologists

• Delegations from Industry associations from all over India and foreign countries

• Business Development Service providers, agents and consultants

Concurrent Events

• Seminars and Workshops exposing MSMEs to emerging business opportunities and the buyers to the capabilities of Indian MSMEs

• MSME capability assessment mechanisms “India's space industry is registering explosive growth..for indigenous as well as foreign suppliers…”

“India's space industry is registering explosive growth..for

indigenous as well as foreign suppliers…”

Tom Captain, Vice Chairman, Deloitte LLP ,

Global Aerospace & Defense Sector Leader

Government pushing hard to triple increase indigenous

defence procurement from current 20% to 70%

• 2.8 million units accounting for 30-40% of value-addition in manufacturing

• Contribute 50% to India's Industrial output and 45% to exports

• Of the 6000 approved vendors of defence PSUs, around 90% comprise of MSMEs (over 500 of them to ISRO )

• Working on cutting edge technologies, a sizeable section of MSMEs honed up their engineering competencies by excelling in automobile, electrical, electronics, light engineering and capital goods sectors

Indian MSMEsIndian MSMEs

DEF+CONTRACT INDIA 2011

To Indian MSMEs

India's new defence policies unlocking $100 bn market India's new defence policies unlocking $100 bn market

India's defence procurement policy regime is undergoing a paradigm shift and is being credited to open up business opportunities to the tune of US$ 100 bn in next few years. The Indian manufacturers/ suppliers of goods and services for defence, aerospace and home-land security are to be the main beneficiaries of the government support policies of "buy local", taxation arrangements that advantage local firms (including defence public sector undertakings ) and the recently announced 'offset policies'.

India's offset policy for the defense industry states that any purchase from a foreign supplier in excess of $70 million will require a reinvestment of 30% of the total purchase amount in terms of components and services from India including establishing training facilities, technology sharing, sourcing components, or using IT services from India firms. The policy is extended to state-owned carriers such as Indian (previously Indian Airlines), and Air India and also includes all imports by defense PSUs, ordinance factories, and private participants of the industry too.

The Government of India has also shown keenness in allowing international collaboration for the production of weapon systems, which are purely used for non-lethal purposes such as:

• Technologies/equipment for counter terrorism• Surveillance, communication equipment, and sensors for border management• Cyber security - synergies in the field of information technology• Devices to neutralize improvised explosive devices (IEDs)

Hyderabad is the capital city of Southern Indian State of Andhra Pradesh. It has now developed into a major hub for the information technology industry earning the sobriquet “Cyberabad”. With the development of the Aerospace Special Economic Zone Hyderabad is fast emerging as an aerospace hub growing as a key platform for civil and defense aircraft component manufacturing; aircraft maintenance, repair and overhaul; test laboratories and training; and research and design. A number of prestigious Technical Research and Development institutions of India are clustered in and around the city such as Defence Research and Development Organization (DRDO) related institutions for Integrated Guided Missile Development Programme (IGMDP), Defence Metallurgical Research Laboratory, Defence Electronics Research Laboratory (DERL), Council of Scientific & Industrial Research, Hindustan Aeronautics Limited, Indian Space Research Organization (ISRO), National Aerospace Laboratories, National Remote Sensing Agency (NRSA), Electronics Corporation of India Limited (ECIL) to name a few. Hyderabad is well connected by air, rail and road.

Both domestic and international flights operate from its new swanky Rajiv Gandhi International Airport- which boosts of world's largest runway.

Newly built NSIC Marketing-cum-Business park is a five story building. It has around 1,50,000 sqft of covered area with the provision of exhibition space on the ground floor. It is situated at the NSIC - TSC Complex, ECIL post, Kamla Nagar, Kushaiguda, Hyderabad spread over a sprawling area of 8 acre. Some of the prominent features of the Complex are:

• 100% Power Back up Facility

• Ample Parking Space

• Capsule elevator

• Conference Hall with seating capacity of 100 persons

• Exhibition Hall

• Food Court

• Earthquake resistant structure, CCTV for security surveillance

• Modern fire Fighting system technology

Host City Hyderabad : An emerging defence and aerospace hubThe Venue

The financial support for MSMEs through Ministry of MSME is limited. Apply today!

Contact Organizers

National Small Industries Corporation Ltd.Delhi Office : NSIC Bhawan, Okhla Industrial EstateNew Delhi - 110020Telephone : 011 - 26926275,

26910910, 26926370Fax : 011 - 26932075E-mail : info@nsic.co.inWebsite : www.nsic.co.inContact : Mr. M.P. SinghCell. : + 91 - 9013366160E-mail : mpsingh@nsic.co.in

Federation of Indian Micro and Small & Medium Enterprises (FISME)B - 4/161 Safdarjung Enclave, New Delhi - 110029Telephone : + 91 - 11 - 26187948, 26712064,

46023157, 46018592Fax : + 91 - 11 - 26109470E-mail : info@fisme.org.in Website : www.defcontractindia.comContact : Mr. Vijit VasudevanCell. : + 91 - 9999452004E-mail : vijit@fisme.org.in

Hyderabad Office : South 203, Sri Dattasai Complex,RTC 'X' Road, Musheerabad,Hyderabad - 500020Telephone : 27622515, 27615761,

27622097Fax : 27617777E-mail : nsic_hyd@dataone.inContact : Mr. K. SrinivasCell. : + 91 - 9849649228E-mail : ravikumar@nsic.co.in

ISO 9001 : 2008

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DEF + CONTRACT INDIA 2011