Mahindra Inks $100 Mn Contact with Airbus Atlantic

Mahindra Aerostructures Pvt Ltd (MASPL) and Airbus Atlantic have entered into a strategic relationship with a multi-year contract. This contract, valued at approximately $100 million, involves MASPL manufacturing and delivering nearly 2,300 varieties of metallic components and small assemblies for the entire Airbus commercial aircraft family, including the A320 family. This deal strengthens the existing partnership between MASPL and Airbus, which has been in place since 2015.

The contract is a testament to MASPL's capabilities and commitment to industrial maturity, digitalization, performance, and sustainability. It also highlights Airbus Atlantic's confidence in MASPL's robustness, expertise, and high-end technology capabilities, which are crucial for Airbus's supply base and production ramp-up across all programs.

Last month, Bengaluru-based Dynamatic Technologies inked a contract with Airbus to manufacture and supply the main passenger doors, service doors, cargo doors and over-wing emergency exit doors for the A220 —the passenger aircraft of Airbus.

Mahindra Aerostructures represents the Mahindra Group’s interests in aerospace manufacturing. It operates a 250,000 ft² (25,000 m²) plant near Bangalore, India, which is equipped with comprehensive capabilities to produce sheet metal and machined parts, welding, finishing and assembly. The business holds AS9100D and 6 NADCAP certifications alongside numerous customer accreditations and is a supplier to many reputed OEMs and Tiers around the world.

Airbus Atlantic is a significant subsidiary of Airbus, established on January 1, 2022. It's a global leader in the aerostructures field, positioned as the world's second-largest aerostructures company and the top producer of pilot seats. The company also ranks among the top three for Business Class and First Class passenger seats, marketed under the STELIA Aerospace brand.

MASPL has been a direct supplier to Airbus Group since 2015, and partners with Airbus on numerous initiatives. It has been ranked as a D2P “Challenger” for three years in the Sheet Metal Parts domain, as well as level “A” in the Airbus Industrial Process Capability Assessment (IPCA+) and has won “Best Performer” award in the 2023 Airbus Supplier Quality Improvement Program (SQIP) awards.

In January this year, MASPL and Airbus Aerostructures GmbH had signed a contract wherein MASPL would supply close to 5000 varieties of metallic components to Airbus in Germany from its manufacturing base in India.

With an estimated business volume of around 3.5 billion euros, Airbus Atlantic operates with a workforce of 13,000 employees across five countries and three continents. The company's creation was part of a transformation project aimed at increasing competitiveness, enhancing production flows, modernizing industrial tools, and preparing for low-carbon aviation.

The contract between Mahindra Aerostructures Pvt Ltd (MASPL) and Airbus Atlantic aligns with the Indian government's 'Make in India' initiative, which aims to transform India into a global manufacturing hub. By manufacturing components for Airbus, MASPL will contribute to this vision and showcase India's manufacturing capabilities on an international stage.

Besides attracting foreign direct investment and encourage technology transfer, this deal also likely to contribute to economic growth by creating jobs and fostering skill development in the aerospace sector

This contract will help in developing a robust supply chain ecosystem in India. It will encourage other global aerospace companies to consider India as a potential location for sourcing components.

The successful execution of this contract could enhance India's reputation in the global aerospace market, potentially leading to more contracts and partnerships with other international aerospace firms. The partnership with Airbus Atlantic will necessitate adherence to international standards, which could lead to technological advancements and improvements in quality standards within the Indian aerospace industry.

Overall, the contract is expected to have a positive ripple effect across the Indian aerospace industry, enhancing its capabilities, competitiveness, and global presence.

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