Date:17/03/2006 URL: http://www.thehindubusinessline.com/2006/03/17/stories/2006031703120300.htm

Back Recaero sets up Indian subsidiary in Bangalore

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French co to supply spares for aircraft majors

SPREADING WINGS: Mr Thierry Pobeau (right), CEO, Recaero France, and Mr Vinay Jha, Chairman, Recaero India Pvt Ltd, at a press conference in Bangalore on Thursday. — G.R.N. Somashekar

Bangalore , March 16

French aeronautical spare parts maker Recaero has launched its Indian subsidiary in Bangalore to manufacture and source spares for global aircraft majors and airlines.

The 65,000-sq ft Recaero India plant, coming up at Bidadi, 30 km from here, is its only plant outside France and will be eventually the company's sourcing hub for South and South-East Asia, the company's CEO, Mr Thierry Pobeau, told a news conference.

Witha Rs 10-crore investment over three years, Recaero India will be operational by this year-end and supply body and engine spares for Airbus, Snecma, ATR, Eurocopter and Dassault aircraft. The investment would be scaled up to Rs 30 crore in the second phase, Mr Vinay Jha, Chairman of the Indian entity, said.

Sub-contracting

Fifteen sub-contractors from Peenya have been roped in to supply in the first phase using materials from France. Orders with longer lead times will be out of this plant. "By mid-2007, we shall develop manufacturing for serial production for our main European customers just as the French parent," Mr Pobeau said. In the growing aviation market, Recaero India is eyeing a turnover of Rs 3 crore by 2007-end and plans to hire 100-150 employees in the next five years. The subcontracting and manufacturing mix would then be around 50:50. According to Mr Pobeau, Recaero holds 75% equity in the Indian unit, while its Director, Mr O.P. Nambiar, holds 18 pct and Mr Vinay Jha the rest.