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Rolls-Royce to Expand Sourcing from India to Strengthen Global Supply Chain

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Rolls-Royce to Expand Sourcing from India to Strengthen Global Supply Chain
10 Feb 2025
4 min read

News Synopsis

Aerospace and defence major Rolls-Royce has announced its intention to double sourcing from India over the next five years, reinforcing the country's growing role as a global manufacturing hub.

This strategic move is aimed at increasing the procurement of complex components for advanced aerospace engines, naval propulsion systems, diesel engines, and gas turbine engines. The initiative aligns with Rolls-Royce's long-term vision to expand its footprint in India's defence sector.

The company already sources a wide range of high-precision parts and engine components from several Indian partners for its civil aerospace, defence, and power systems divisions. However, the exact value of these sourced products remains undisclosed.

Rolls-Royce Eyes India as a Key Global Sourcing Hub

Strengthening India's Position in the Global Supply Chain

Nicola Grady-Smith, Chief Transformation Officer of Rolls-Royce, emphasized India’s importance in the company’s global sourcing strategy.

"India is fast emerging as a preferred hub for global sourcing, and we are looking to broaden our partnerships here to support both our business growth and the government of India's vision to 'Make in India for the world'," Grady-Smith stated.

She further noted that Rolls-Royce has played a vital role in enhancing India's manufacturing capabilities to meet international quality standards. The company now aims to build on these existing partnerships and develop local expertise for producing complex engine components that cater to global markets.

Rolls-Royce’s Strategic Partnerships and Defence Commitments in India

A Strong Ecosystem of Partnerships and Skilled Talent

Rolls-Royce has established an extensive ecosystem in India that includes strategic alliances, engineering capabilities, digital innovation, and supply chain networks. The company has a legacy of successful technology transfer for the licensed production of engines within the defence sector.

Alex Zino, Executive VP for Business Development and Future Programmes at Rolls-Royce Defence, highlighted India's role in the company’s long-term plans.

"India plays a significant role in our long-term strategy, both as a sourcing hub and as a strategic partner in advancing defence technologies... Strengthening the supply chain and enhancing ecosystem capabilities at this time will create a solid foundation for future co-production opportunities, and support India's vision of becoming a self-reliant defence powerhouse."

Collaborations with Leading Indian Companies

Rolls-Royce has already forged joint ventures and partnerships with leading Indian firms such as Hindustan Aeronautics Ltd (HAL) and Force Motors. It also maintains long-standing collaborations with Tata, Bharat Forge, Godrej & Boyce, and others for the manufacturing and sourcing of complex components for its aerospace and defence operations in India.

The company has a highly skilled workforce of over 2,000 engineers working in-house and through outsourcing agreements, contributing to global development programs.

Rolls-Royce’s Commitment to India’s Defence Sector

Advancing India's Defence Manufacturing Capabilities

Rolls-Royce remains dedicated to supporting India's armed forces and fostering co-development opportunities for advanced combat engine technologies.

The company sees India as a critical partner in achieving self-reliance in defence manufacturing, aligning with the Indian government's Atmanirbhar Bharat (Self-Reliant India) initiative.

By increasing its sourcing activities and investing in local manufacturing capabilities, Rolls-Royce aims to contribute significantly to India's ambition of becoming a leading global defence production hub.

Conclusion

Rolls-Royce’s decision to double its sourcing from India over the next five years underscores the country's growing importance as a global manufacturing and defense technology hub.

By expanding its partnerships and strengthening the local supply chain, the company aims to support both its business growth and India’s 'Make in India' initiative.

With collaborations already in place with key Indian players like HAL, Tata, and Bharat Forge, Rolls-Royce is positioning itself for long-term strategic engagement in India's aerospace and defense sectors.

This move not only boosts India’s self-reliance in defense manufacturing but also creates opportunities for advanced skill development and high-value job creation. As the nation strengthens its role in the global supply chain, such partnerships will further solidify India's position as a major player in high-tech manufacturing and defense co-development.

TWN In-Focus