Someone plz help me understand the rationale behind Rolls Royce partnering with Reliance for, checks again, developing a jet engine for AMCA. Reliance, or any of its subsidiaries, haven't got much, if any at all, experience of R&D/mfg of jet engine components.
If RR was desperate, and it does reek of desperation, it could've partnered with the likes of Bharat Forge and Godrej Aerospace, alongside a bunch of SMEs like Azad Engineering etc who make precision components for jet engine makers. BFL is involved in mfg of forged and machined components for RR's Trent, Pearl 700 and 10X engines. Godrej is involved with KDE project and makes composite parts for GE's turbines. All such companies would jump at the opportunity for a deeper collaboration, so RR's "inent to partner with RIL" is something I'm struggling to make sense of.
Reliance Industries (read Mukesh bhai) has deeper pockets that most. I'd wager he's going go the strategic acquisitions route to rapidly build up capabilities in the next few yrs. Much the same way as Adani which has picked up stakes in 3-4 specialist aerospace/defence firms over the yrs, including ADTL.
For once, Reliance is putting its money to good use.
Unable to understand why's RR so desperate ? Their lead contactors in the development of the TF for the GCAP project besides being a vital part of the F-135 project & its successor now.
In addition to these they have an extensive clientele both domestic & international for their range of TFs for air & marine applications apart from their range of generators.
I suspect the British government has told them not to expect handouts in the future given the declining British economy . In any case internal assessments may have highlighted cutting dependency on domestic programs & expanding their footprint overseas.
The usual factors are at play here which I've highlighted before in case of le Francais too. Rapidly plunging TFR , stricter immigration policies now likely to be more stringent as we go ahead limiting the talent pool for cutting edge state of the art R&D & mfg , deteriorating economy & bleak future prospects etc.
Hence taking a long term view where exactly should they be present ? Why India of course ?! Largest pool of engineering talent on the cheap for R&D & mfg , a booming economy likely to stay that way for the foreseeable future , an unsafe neighborhood thus ensuring a ready market for RR products , deep pockets , a large market etc.
Could also have to do with the fact that apart from the Turks & the Koreans we're the only game in town. RR which was a consultant to the indigenous TF project for the 5th Gen KAANa had a fallout with the Turks ostensibly on the issue of IPR . The real reason is unknown while the Koreans are partnering with the US.
Incidentally the CEO / MD of RR is a converted Greek. Wonder how much part that played in cultivating deeper ties with the Turks & permitting them access to tech they'd otherwise be unable to develop on their own.
As far as the reason for the partnership with Mukesssbhai , it's simple. Like all good banias he doesn't believe much in R&D , hence will continue to be a junior partner in the JV for a long time to come or kingdom come , has deep pockets & is well networked. RR couldn't have asked for a better partner except perhaps Adani.