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Rockwell Collins Eyes Indian Market

In the past India had tended to buy weapons either from the Soviet Union, Great Britain or domestic sources. There laws on offsets and working with Indian companies limited opportunities for U.S. defense contractors to bid or win work.

In the last several years this has changed as India has turned to Western suppliers. They loosened the laws on offsets and expanded the number of corporations that could team with outside entities to make it possible for a more diverse group of contractors to bid. This led to Boeing (BA) winning contracts for transports as well as maritime patrol aircraft. France’s Dassault Rafael was selected for the new fighter program as well.

India continues to have a whole host of different requirements to modernize its military including one for advanced, programmable radios. One U.S. company that is interested in this contract is Rockwell Collins (ROC). Rockwell is a U.S. manufacturer of aircraft avionics, components and also provides software and other services to the U.S. military and commercial market. They have had a facility in India since 2008. The current focus of there efforts there is utilizing local engineering capability to aid in software development.

They exhibited 2 different solutions at a recent DEFCOM India 2012 show.

Rockwell also just announced that they will team with India conglomerate Tata to bid on this contract. Using an Indian partner will aid in having their bid accepted.

With the expected decline in the U.S. and European defense markets with the budgetary problems needing to be solved overseas contracts will become more of a focus for all defense contractors no matter what the size. Asia is considered the primary market to make up some of the lost business. It will attract more companies like Rockwell in the future.

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EADS Announces Contract Win At Paris Airshow

EADS subsidiary EADS Astrium announced at the Paris Air Show that they had won a contract from Kazakhstan. No amount was provided for the award. EADS Astrium was able to win out against Thales SA which is another major French defense conglomerate.

The company will build a satellite integration center in the capital of the Former Soviet Republic. Kazakhstan has a great deal of oil wealth to support these kinds of expenditures. EADS Astrium said eventually the country will build its own satellite program with their help. So more to come on this in the future as that is a fairly ambitious program.

EADS is looking at using the Air Show as a background to announce good news in a year where it has struggled due to the economic crisis across the world.

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Looking to buy DRS

This article discusses the idea that Finmeccanica, the Italian defense conglomerate, is looking at DRS Technology for an American acquisition. Like EADS and BAE the Italian company has been expanding its presence in the US. Its helicopter arm, Augusta Westland, won the VH-71 Presidential helicopter teamed with Lockheed Martin and is also trying to win the CSAR-X recompete post-protest. DRS which makes advanced sensors and electronics while providing SETA services has long been an attractive take over target. It’s stock though has done very well recently and for Finmeccanica to buy it would require a substantial investment. Read more

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