Rolls-Royce scouts for second partner

Rolls-Royce is looking to add a second engineering and design services firm in India to cater to its design requirements. Under the government's $10-billion defence programme, Rolls-Royce has a commitment to offset 50 per cent of its research and development requirements to Indian design companies.

The British aerospace giant is understood to be in the process of rolling out a series of new engine design, analysis and development programmes and is looking at roping in an additional partner to handle its sub-contracting requirements, sources aware of the development said.

Rolls-Royce India did not respond to queries emailed to them. The company's technical partner in India, QuEST Global, is a Rs 380 crore Bangalore-based engineering services firm, which has been running a dedicated engineering development centre for Rolls-Royce since 2005.

"In line with their growing business requirements and need to develop affordable aero engineering solutions, Rolls-Royce is looking at roping in an engineering design services firm based in Bangalore. The company is also looking to derisk its outsourced design portfolio by allotting work to more than one vendor. It is presently in the process of shortlisting potential sub-contracting partners from among three companies," sources said, without naming the companies shortlisted.

Sources added that the four global market sectors of the Rolls-Royce group-civil aerospace, defence aerospace, marine and energy (including the services business)-are likely to outsource engineering services to the new partner after the selection process is complete.

QuEST is in the process of expanding its Rolls-Royce venture from 350 people to 500 by March 2010. QuEST supports Rolls-Royce's various aerospace engine programmes, and has also undertaken work on new development programmes including the XWB engine, which will power the new generation A350 aircraft.

Rolls-Royce recently set up a new purchase office in Bangalore to further drive its procurement plans in the country.

Rolls-Royce has also had a licence production partnership with Hindustan Aeronautics Limited in Bangalore since 1956. From manufacturing the Orpheus engine in 1956, HAL has evolved into a key partner for Rolls-Royce and has been involved in the maintenance of the Avon, Adour, Gnome and Dart aero engines as well as Avon and 501 K industrial gas turbines.

HAL is now set to manufacture the Adour 871 engine for the new Indian Air Force Hawks under a new licence agreement with Rolls-Royce which has also set up a purchase office in Bangalore (HAL) to increase its sourcing activities in India.