Adani - Leonardo collaboration on helicopter ecosystem in India

Now that they have Adani's backing, Leonardo could concievably even pitch the AW101 for the VVIP helo requirement. That would be a real case study in marketing and PR.

GoI would likely prefer the relative safety offered by a three-engine bird vs the ageing Mi-17s, imo. IMRH isn't even funded so Leonardo has a good chance.
 
They are teaming up for two different tenders, Navy and Army.

Adani Defence & Aerospace and Leonardo Forge Strategic Partnership to Build India's Helicopter Ecosystem

  • Adani Defence & Aerospace and Leonardo announce a strategic partnership to develop, manufacture, and sustain a helicopter manufacturing ecosystem in India.
  • The programme will address the increasing demand and new military requirements, positioning India as a future hub for helicopter manufacturing.
  • The partnership paves the path for a new Indian helicopter ecosystem with the potential to be extended to the civil domestic demand, with dedicated localized industrial activities, and support the international supply chain.

Adani Defence & Aerospace, the flagship defence and aerospace arm of Adani Enterprises Ltd and a frontrunner in India's defence sector, today announced the signing of a Memorandum of Understanding (MoU) with Leonardo, the global leader in defence, aerospace, and security. This landmark partnership will establish a fully integrated helicopter manufacturing ecosystem in India, addressing surging military demands and propelling the nation toward self-reliance in helicopter production.

Targeting the Indian Armed Forces' requirements, particularly for Leonardo's advanced AW169M and AW109 TrekkerM helicopters, the collaboration will deliver phased indigenization, robust maintenance, repair, and overhaul (MRO) capabilities, and comprehensive pilot training.

By fusing Leonardo's world-class helicopter design and engineering prowess with Adani Defence’s end-to-end defence and aerospace expertise, the initiative advances the Aatmanirbhar Bharat vision, strengthens national defence readiness, with the potential to be extended to civil aviation applications and international supply chain integration.

This ecosystem promises transformative economic impact: thousands of high-skill jobs in engineering, manufacturing, logistics, and sustainment services, while cementing India as a competitive hub for helicopter production.
 
Doubtful given that UH-M prototype already exists and it's only a matter of time before it takes to the skies.
It is now two different procurement programs. UH-M already has assured orders.

 
It is now two different procurement programs. UH-M already has assured orders.

Hmm, that's interesting, because as per news reports, HAL UH-M is also being proposed for the August 2025 RFI for 76 helicopters (51 for Navy & 25 for CG).

 
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After the AW101 scandal, Leonardo/AW is trying to make a comeback in the Indian defence market with Adani as its local partner. They are offering the A-109 once again for the RSH requirement.



First came Airbus with H125M and now we have Leonardo with A109M.
Ah ! I see Operation Phuck HAL , under the pretext of getting rid of 100% dependencies on DPSUs , is proceeding in full swing.

No news on IMRH too vis a vis where has it reached , funding , CCS clearance et al .

In other news BCG is expected to submit its report on HAL to MoD / GoI before the end of this FY.

Also a wonderful advertisement for strategic collaboration between the EU & India in the field of defence. After all we've just signed off an agreement with them on this very topic.

Real Rock n Roll times for Atma Nirbharta !
 
Ah ! I see Operation Phuck HAL , under the pretext of getting rid of 100% dependencies on DPSUs , is proceeding in full swing.

No news on IMRH too vis a vis where has it reached , funding , CCS clearance et al .

In other news BCG is expected to submit its report on HAL to MoD / GoI before the end of this FY.

Also a wonderful advertisement for strategic collaboration between the EU & India in the field of defence. After all we've just signed off an agreement with them on this very topic.

Real Rock n Roll times for Atma Nirbharta !
This was to be expected. Airbus wouldn't have gone to the extent of setting up an entire H125 assembly line in India with just the civil market in mind (which is still in its infancy at the moment.)

At least Leonardo is being honest about its intentions. On their part, the armed forces have wanted a pvt sector alternative to HAL for years. (Wouldn't blame them entirely. HALs track record is hardly flawless.)

Now that it's finally happening, they may well split the RSH requirement 50:50 as they'd earlier hoped to do with Ka-226.
 
Italy-headquartered aviation major Leonardo and the Adani Defence and Aerospace today announced a tie-up to make military helicopters in India. They will be positioning to bid for two separate helicopter requirements – one sought by the Navy and another sought for reconnaissance and surveillance by the Army and the Indian Air Force (IAF).

The Ministry of Defence has floated two separate requirements that would result in procurement of 275 helicopters. One tranche is for 200 Light Reconnaissance and Surveillance Helicopters (RSH) — 120 are for the Army and 80 for the IAF. The second tranche is for 76 marine helicopters – 51 for the Navy and 25 for the Coast Guard.

Post the MoU, the Adani Defence and Aerospace said it was pitching in the Leonardo's advanced AW169M and AW109 TrekkerM helicopters for the two bids.

The AW169M is in the 5-tonne class of helicopters and that is class being sought for the needs of the Navy and the Coast Guard. The tender for 200 RSH seeks a 3 tonne copter. The Leonardo AW109 is of that class.

“The collaboration will deliver phased indigenisation, robust maintenance, repair and overhaul (MRO) capabilities, and comprehensive pilot training,” a company statement said.

 
This was to be expected. Airbus wouldn't have gone to the extent of setting up an entire H125 assembly line in India with just the civil market in mind (which is still in its infancy at the moment.)

At least Leonardo is being honest about its intentions. On their part, the armed forces have wanted a pvt sector alternative to HAL for years. (Wouldn't blame them entirely. HALs track record is hardly flawless.)

Now that it's finally happening, they may well split the RSH requirement 50:50 as they'd earlier hoped to do with Ka-226.
Looks like the order will be split between IDDM & Make India i.e HAL & F-OEM JVs with local partners.

Moreover our defence journalists & therefore our lay public not to mention the dhotis are too uninformed & dumb to understand the fact that while Leonardo & Airbus can simply disassemble & ship their plant including the dies jigs & fixtures here to assemble these hptrs , HAL will have to build them from scratch which brings about a huge cost differential that HAL can't bridge thus rendering them un competitive which mere technical evaluations in favour of HAL will still not be enough to cover that cost differential , more so when the qtys are reduced coz of the division in orders.

Both Leonardo & Airbus need to be commended for their choice of local partners. Adani is what is described in financial journalism as a classic rentier company whereas the Tata Group is a bit of rentier company as well as a bureaucracy masquerading as a business .

None of them will proceed beyond screwdrivergiri. And this will be hailed as successful decoupling from the stranglehold of DPSU's in a few years also touted as a shining example of Atmanirbharta when Indigenous content goes up to 60-70% with zero design expertise.
 
Moreover our defence journalists & therefore our lay public not to mention the dhotis are too uninformed & dumb to understand the fact that while Leonardo & Airbus can simply disassemble & ship their plant including the dies jigs & fixtures here to assemble these hptrs , HAL will have to build them from scratch which brings about a huge cost differential that HAL can't bridge thus rendering them un competitive which mere technical evaluations in favour of HAL will still not be enough to cover that cost differential , more so when the qtys are reduced coz of the division in orders.
The complete lack of synergy between the 3 services on the RSH prog is the root of the problem, imo. The IN clearly prefers a twin-engine LUH for shipborne duty. Otoh, the IAF and Army are jointly pitching for a single engine 6000m+ alt performance bird.

All to replace to exact same Alouette/Chetak (+Lama/Cheetah for IA/AF) acquired in the 1970s.

Sure, the IN may not need max possible service cieling as the other two services. But I believe over the years they could've come to a consensus about their minimum requirements and put up a joint bid.

At the very least this would've bought down unit costs and opex. HAL *might* have been able to spin off a lighter ~4t variant of the Dhruv (just under 6,000m altitude performance iirc, same class as AS365) and this fiasco could've been avoided.

The irony is all 3 services are happy to induct 1970s-era helo models over the much more modern LUH. The basic A109 model first flew in the 1970s, around the same as the H125/Ecurueil.
 
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High time GOI mandated R&D spending, IP development, and indigineous product for clearing a JV from now on.

Because it was good at the start, but kirana industry is misusing the liberalisation of the sector to employ shortcuts.

Its like every product now invites a JV. At this rate, DRDO might even question its role altogether
Were all DPSUs mandated for R&D while they were doing assembly? No, all were depended on DRDO with few exceptions till recently.

Why are these shortcuts halal for DPSUs but not for others. Private players are taking risk with their own capital unlike a DPSU. A loss-making public sector undertaking is a loss to the taxpayer. Its a fundamental difference that many fails to grasp.

You don't have to mandate R&D spending; competition itself is supposed to take care of it. That is, if it is a level playing field, the government is not showing favoritism to their own company. Thats why people say "government has no business to be in business". It muddies the entire field and increases risk for corporates investing. We don't know when the government will change its mind. For example, imagine Congress coming back to power next election. The entire dynamics changes. Risk for politically sensitive names like Adani, Ambani are the highest.

R&D need to be incentivised. The US provides extremely generous tax incentives for engaging in R&D. That is even applicable to small startups. That's how you foster innovation, not by mandating.
 
Were all DPSUs mandated for R&D while they were doing assembly? No, all were depended on DRDO with few exceptions till recently.

Why are these shortcuts halal for DPSUs but not for others. Private players are taking risk with their own capital unlike a DPSU. A loss-making public sector undertaking is a loss to the taxpayer. Its a fundamental difference that many fails to grasp.

You don't have to mandate R&D spending; competition itself is supposed to take care of it. That is, if it is a level playing field, the government is not showing favoritism to their own company. Thats why people say "government has no business to be in business". It muddies the entire field and increases risk for corporates investing because we don't know when the government will change its mind. For example, imagine Congress coming back to power next election. The entire dynamics changes. Risk for politically sensitive names like Adani, Ambani are the highest.

R&D need to be incentivised. The US provides extremely generous tax incentives for engaging in R&D. That is even applicable to small startups. That's how you foster innovation, not by mandating.
True. I got too idealistic back there. Thanks for the perspective.

But just to clear my point.. I did not make distinction between pvt and DPSU. I thought of to mandate both.

But then again, for a politically risky nature of our "free market".. my idealist idea will become red tape.
 
The complete lack of synergy between the 3 services on the RSH prog is the root of the problem, imo. The IN clearly prefers a twin-engine LUH for shipborne duty. Otoh, the IAF and Army are jointly pitching for a single engine 6000m+ alt performance bird.

All to replace to exact same Alouette/Chetak (+Lama/Cheetah for IA/AF) acquired in the 1970s.

Sure, the IN may not need max possible service cieling as the other two services. But I believe over the years they could've come to a consensus about their minimum requirements and put up a joint bid.

At the very least this would've bought down unit costs and opex. HAL *might* have been able to spin off a lighter ~4t variant of the Dhruv (just under 6,000m altitude performance iirc, same class as AS365) and this fiasco could've been avoided.

The irony is all 3 services are happy to induct 1970s-era helo models over the much more modern LUH. The basic A109 model first flew in the 1970s, around the same as the H125/Ecurueil.
There can't be much synergy in the procurement of this particular hptr as the requirements are clearly different.

Having said that , there's no synergy even otherwise between the 3 arms nor is MoD or the various departments created since like Department of Military Affairs or the CDS fostering this line of thought . I may be wrong & request people more knowledgeable or who've been following these developments to correct me .

Returning to the topic of the LCH & its proposed derivative for the IN , if this were a joint project it'd end up being like what we've seen in the F-35 project which is essentially 3 different programs combined into 1 .

They still haven't been unable to entangle all the knots in spite of trying for all these years & likely never will. It's a cautionary tale for armed forces & Governments the world over .

If a pre eminent power like the US can go so spectacularly wrong in project definition & management of such a vital program what hope do lesser countries have ?

The fact of the matter is EU countries have smelt blood . They're dumping in ancient designs coz they've spotted a market with much potential & with not much competition with their potential collaborators from the local industry all with few exceptions interested in cashing in with no appetite for investments or R&D .

In short a rentier mentality & the existing player a Government owned PSU with all the attendant problems & reputation such an entity would carry even back home leave aside what it would be in a place like India where the situation would be worse vis a vis this govt controlled DPSU.

Net Result - it's a dream come true for them. Besides labour arbitrage , low costs of land , etc making it a hub for domestic consumption here as well as exports. Don't be surprised if this comes true & soon you see these being designated EOUs with full tax or most taxes being exempted.

Needless to add this is totally opposite to the situation in China where predatory practises by the CCP have now seen the birth of competition to the west in practically all mfg across the spectrum.

If lay people here can discern this , it stands to reason that policy makers have obviously thought about such scenarios in spite of which they have proceeded on the course they have.

My own thoughts on the matter is given we can't exactly replicate the CCP playbook , GoI is going ahead with this policy for want of a better word & see how the situation evolves in the future.

The thinking would be a few of these JVs may see local cos absorb tech only to emerge as fully independent cos in their own right in the future.

I'm not sure this is the right way to go for the simple reason the rentier class of businessmen here have deep political connections which means political patronage .

Whereas such entities would be commission agents 3-4 decades ago ,this class given the way our economy has progressed have now evolved into "industrialists " with zero change in their mentality .

A good example is the Adani Group. In between there were reports of the Reliance Industries being denied permission by the Chinese government from either taking over a Chinese co into Li battery management system development or core battery chemistry technology .

Now Mukessbhai has gone on a shopping spree all over the world to bag start ups in this field as well as cos into Sodium Battery technology & cos into developing tech for mfg Hydrogen gas essentially in the EU though not restricted to that geography. How come they've suddenly stopped all R&D activities ?!

And this has typically been the bane of our business class & therefore our economy . Sanjeev Sanyal hinted as much when he called for a regular destruction of the a section of the business class for their mode of survival is parasitism which survives purely on political patronage & protectionism.

Of course he said this in a different context but what we're witnessing in the realm of defence mfg or rather assembly aka screwdrivergiri today is what we've witnessed in other spheres since long.

For example - the Hindustan motors or the Premier Group were content tinkering around with the same designs without innovating at all for there was no reason to do otherwise in a closed economy. We've seen what's happened to them .

However you can look at the others who've survived & check for what have they done in as far as innovation goes . Up until recently the Tata Group didn't develop their own engines. I'm not sure even today they actually mfg the transmission system. You can extrapolate this data point to the other Indian OEMs in the same field to check how self sufficient they are.

OTOH you also have exceptions like Royal Enfield. But one swallow does not a summer make. Not too well versed with the developments in the auto industry so my data here could possibly not reflect the actual ground realities. However that shouldn't in any way take away from the gist of what I'm conveying.
 
There can't be much synergy in the procurement of this particular hptr as the requirements are clearly different.

Having said that , there's no synergy even otherwise between the 3 arms nor is MoD or the various departments created since like Department of Military Affairs or the CDS fostering this line of thought . I may be wrong & request people more knowledgeable or who've been following these developments to correct me .

Returning to the topic of the LCH & its proposed derivative for the IN , if this were a joint project it'd end up being like what we've seen in the F-35 project which is essentially 3 different programs combined into 1 .
Afaik, the primary difference between land-based and shipborne helos is in the transmission, rotor and gearbox. Gearboxes, in particular, need more ruggedization in naval helos as they operate at mtow more often and in marine environments.

Case in point: Bell AH-1s were flown by both the USMC and the US Army before the latter switched to the Apache.

My point is that MoD/IDS could have asked the 3 services to rationalize their requirements and prepare a joint SQR. But its too late now.

The fact of the matter is EU countries have smelt blood . They're dumping in ancient designs coz they've spotted a market with much potential & with not much competition with their potential collaborators from the local industry all with few exceptions interested in cashing in with no appetite for investments or R&D .

In short a rentier mentality & the existing player a Government owned PSU with all the attendant problems & reputation such an entity would carry even back home leave aside what it would be in a place like India where the situation would be worse vis a vis this govt controlled DPSU.

Net Result - it's a dream come true for them. Besides labour arbitrage , low costs of land , etc making it a hub for domestic consumption here as well as exports. Don't be surprised if this comes true & soon you see these being designated EOUs with full tax or most taxes being exempted.
The armed forces couldn't care less about industrial/ToT issues. It is upto GoI/MoD to negotiate effectively with FOEM on these matters.

Imo, they could've followed the same approach as the Koreans who wisely chose an out of production design - Dauphin/AS365 - as the base for their new LAH project.

They straight up bought out the IP/design rights and are now free to make as many variants as they need.

Otoh, H125 is still in production at Airbus France and other JVs worldwide. (So no possibility of IP transfer) Likewise, with A109.

GoI is trying to replicate the 1990s outsourcing model of the service sector in the mfg sector. All they seem to be interested in is job creation in general and FDI in defence.