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Boeing and India
Building on trust

 
 
By Brian J Nelson Published :February 2010
 
 
 
     

Washington. Soon after Boeing India was incorporated in 2004, Boeing Defense, Space & Security executives went to work opening the once off-limits Indian defense market for Boeing.

 

“Our first trip in-country was to Aero India air show in 2005,” recalled Jerry Vincent, who was assigned business development responsibilities for the F/A-18 Super Hornet in India. With him was Mark Kronenberg, today the vice president of International Business Development for BDS.

“Things were starting to move fast,” said Kronenberg. “The U.S. State Department had just greenlighted U.S. defense contractor sales to India and at about the same time India issued a Request for Information for 126 new multi-role combat fighters.”

To the handful of companies in the world building combat fighters, the India competition promises to be one of the biggest international fighter purchases in decades. But Boeing was not among the companies sent the initial information request. That’s because few in India, even in the Ministry of Defense, regarded Boeing as a defense company, which made the work of Vincent and Kronenberg all the more pressing.

“The Indian Air Force was glad that Boeing, known for its quality in commercial airplanes, also had a defense arm and created products like the F/A-18 Super Hornet,” said Vincent, who, along with Kronenberg, scrambled to get Boeing a seat at the bidder’s table. Yet, their initial meetings with the Defense Ministry and IAF would not have happened were it not for the six-decade legacy of trust already established in India by Boeing Commercial Airplanes.

“How could I not meet with The Boeing Company?” the Chief of the Indian Air Force is reported to have said as he welcomed Chris Chadwick, now president of Boeing Military Aircraft, into his office weeks later.

Boeing executives realized that to succeed in India, the company had to present one face to the customer that simply said “Boeing.” Internally, this ‘One Boeing’ approach reached across intra-corporate boundaries to capitalize on talent, technology and expertise across the enterprise.

In line with this strategy, BDS brought in someone to lead its initiatives in India with a solid background of Commercial Airplanes experience in India. That was Vivek Lall, who now is responsible for promoting the F/A-18 Super Hornet and other BDS defense products in the Indian defense market.

That early strategy is working.

  • In 2009, Boeing won the biggest U.S. defense deal with India with the multibillion-dollar sale of the eight Boeing P-8I long-range anti-submarine aircraft, with more sales possibly on the way. Although a BDS product in name, the P-8I is a derivative aircraft based on Boeing’s 737 passenger aircraft, which Lall knew from his Commercial Airplanes days.
  • In January 2010, India sent the U.S. government a request for information on a potential order of 10 Boeing C-17 Globemaster III military transports, a deal industry analysts say could exceed $2 billion.
  • The F/A-18 Super Hornet has become a strong contender in India’s fighter competition, which is worth as much as $10 billion. The Super Hornet completed the India phase of the all-important flight trials in August.
  • In October, Boeing submitted bids for India’s Heavy Lift and Attack helicopter requirements, offering the CH-47 Chinook and AH-64D Apache.
  • India selected BDS to maintain the three Boeing Business Jets operated by the government of India.

These, and other potential India defense requirements, represent a $31 billion market opportunity for Boeing over the next 10 years, according to Kronenberg. “If we do this right, we’re very well-placed to become India’s defense supplier of choice,” he said.

But sales are only half the India success story. Boeing is forging partnerships with Indian companies that will inject new talent and processes into Boeing, making it a leaner company with lower costs that can win new sales and preserve jobs. “In this new world, partnerships are the only way to go, and we’re building them,” Lall said.

Boeing has placed work packages with large, government-owned Hindustan Aeronautics Limited (HAL) that include F/A-18 gun bay doors and wire harnesses, and is sharing with HAL Lean+ and program management principles. If Boeing wins the fighter contract, HAL will assemble 108 of the 126 aircraft in India, as required in the Request for Proposal.

BDS also is exploring partnerships with numerous other Indian companies and has begun signing contracts to satisfy work placement requirements from the P-8I sale. Boeing and India’s Bharat Electronics Limited are jointly developing an analysis and experimentation center in Bangalore and New Delhi to assist the service branches in understanding how to satisfy future defense and security needs.

Looking back, Chadwick, now president of Boeing Military Aircraft, marvels at the work that has been accomplished in a short time by One Boeing in India.

He also sees a larger legacy. “I believe the U.S., Boeing and India have the potential to build a great and lasting defense partnership,” he said. “And one of the greatest symbols of that partnership can be the Super Hornet.”

 
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