Raytheon to Enhance Air Traffic Management Systems in India

March 1, 2010 by Jeffrey Bradford · Comment
Filed under: India, Raytheon, Syndicated Industry News 
Raytheon to Enhance Air Traffic Management Systems in India
March 1, 2010

HYDERABAD, India, -- Raytheon Company (NYSE: RTN) has been awarded a contract by the Airports Authority of India to automate air traffic control services at the Chennai International Airport.

Raytheon will install AutoTrac III, its next-generation air traffic management system, to help reduce delays in aircraft arrival and departure. The new system will also have real-time meteorological information to assist air traffic controllers in adjusting to changing weather conditions.

In addition to the Chennai International Airport, Raytheon is upgrading air traffic management systems at the Chhatrapati Shivaji International Airport in Mumbai and at the Indira Gandhi International Airport in New Delhi.

"For more than 60 years, Raytheon has been at the forefront of designing and delivering the world's most innovative and reliable civilian and military air traffic management systems," said Andy Zogg, Raytheon Network Centric Systems vice president of Command and Control Systems. "This award continues our long-standing relationship with AAI and its commitment to make Indian air space as safe as possible."

AutoTrac III features a new generation of flight and surveillance data processing systems to ensure air traffic safety. The system's modern, open architecture design and high performance is fully adaptable and scaleable to fit any air traffic management environment from simple tower automation to a fully integrated multi-center system.

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Raytheon Teams With Larsen & Toubro on India Tank Upgrade Proposal

February 16, 2010 by Jeffrey Bradford · Comment
Filed under: India, Raytheon, Syndicated Industry News 
Raytheon Teams With Larsen & Toubro on India Tank Upgrade Proposal
February 16, 2010

NEW DELHI, -- Raytheon Company (NYSE: RTN) and Larsen & Toubro Limited (L&T) have submitted an L&T-led proposal to upgrade Indian Army T-72 tanks.

The announcement was made Tuesday at DEFEXPO India 2010 in New Delhi.

Under the proposal, Raytheon will provide infrared imaging sights and electronics to improve target accuracy and increase overall system lethality of T-72 tank battalions. Raytheon has provided more than 20,000 thermal sights in 15 countries.

"Through collaboration with L&T on this important proposal for the Indian Army, we have confirmed the very complementary capabilities leveraged across our companies," said Fritz Treyz, vice president, Raytheon Network Centric Systems India Operations. "Together, we are exploring other opportunities to provide net-centric modernization defense solutions to meet growing demands in India and the global marketplace."

L&T brings a successful track record developing fire control systems across multiple weapon systems for land, naval and air defense applications. With customer support, L&T will perform the final integration of fire control system and sensors on the T-72 tanks.

"L&T is the only Indian company in the private sector that is leading a team for the T-72 upgrade program. The L&T and Raytheon combination has what it takes to deliver on such an important program," said M. V. Kotwal, senior executive vice president and member of the L&T board of directors. "This will lead to new joint opportunities in the Indian and global defense markets."

Larsen & Toubro is an $8.5 billion technology, engineering and construction group with global operations. It is one of the largest and most respected companies in India's private sector.

A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for more than seven decades.

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Northrop Grumman Highlights Industry Leading Security Capabilities for India at DefExpo 2010

February 11, 2010 by Jeffrey Bradford · Comment
Filed under: India, Syndicated Industry News 
Northrop Grumman Highlights Industry Leading Security Capabilities for India at DefExpo 2010
February 11, 2010

NEW DELHI, -- Northrop Grumman Corporation (NYSE: NOC) will be participating at DefExpo 2010 where it will highlight its range of industry-leading capabilities in airborne early warning and control systems for maritime reconnaissance, fire control radars, unmanned aircraft systems, coastal surveillance and marine navigation, and ships.

The land and naval systems show DefExpo will be held at the Pragati Maidan, New Delhi from 15-18 Feb., 2010. It is organised by the Defence Exhibition Organisation, Ministry of Defence. Northrop Grumman will be exhibiting in Hall 14.

"India is an important market for Northrop Grumman and with core competencies and proven capabilities in unmanned systems and airborne early warning and control we are ready to meet the country's current and evolving homeland security priorities," said John Brooks, president Northrop Grumman International Inc. and vice-president of business development for Northrop Grumman Aerospace Systems sector. "Our focus is to link together and network all of these systems to create solutions that respond to India's requirements for a coordinated national defence structure. We look forward to showing how our products and capabilities can help India achieve its defence modernization objectives."

Among the exhibits on display will be Northrop Grumman's world leading capabilities in airborne early warning and control. Featured will be the E-2D Advanced Hawkeye and the multi-role electronically scanned array (MESA) radar.

The E-2D Advanced Hawkeye programme has enhanced the E-2 mission system by providing a new more powerful radar and avionics system to create an advanced AEW&C capability. An E-2D Advanced Hawkeye crew work-station and flyable cockpit simulator will be included among the exhibits to demonstrate the benefits of the E-2D for military and civil applications. India is among the very first countries for which the Advanced Hawkeye capability has been released.

The MESA surveillance radar is an advanced airborne surveillance sensor and provides peninsular protection enabling sophisticated air-to-air and maritime coverage and integrated friend-or-foe identification. A computer demonstration of MESA capabilities and scale model of the array will be available for viewing.

Also on display will be a model of Northrop Grumman's AN/APG-80 active electronically scanned array (AESA) radar for the F-16IN Super Viper multi-role fighter aircraft.

Northrop Grumman's airborne surveillance capability will also be highlighted with a model of Fire Scout, the Vertical Unmanned Aircraft System (VUAS) multi-role UAV on display. Fire Scout has recently deployed initially with the U.S. Navy.

The company's latest generation of navigation and ship control technology will be highlighted. The Northrop Grumman Sperry Marine VisionMaster FT provides a highly integrated, fully networked suite of marine radar and electronic charting systems designed to form the backbone of the modern ship's integrated bridge. In addition to the standard suite, Northrop Grumman will feature its integrated platform management solution as part of the VisionMaster FT defence offering.

Other programmes available for viewing will be models of directional infrared countermeasures (DIRCM); the LITENING advanced airborne targeting and navigation pod; the mine warfare mission system Airborne Laser Mine Detection System (ALMDS); and the Joint Multi-mission Expeditionary Craft (JMEC) that demonstrates the company's scalable network-centric warfare C4I system for high-speed boats capable of operating in locations from high-seas to the most challenging inland waterways.

Northrop Grumman's capabilities in maritime security for military and civil applications will be featured with the Harbour and Coastal Security (HCS) system being highlighted. HCS integrates off-the-shelf computers, communications, and sensors with sensor processing and Maritime Domain Awareness (MDA) databases to provide a flexible, standards-based command and control system supporting layered, multi-agency, maritime security and safety operations. HCS can easily be adapted and scaled for shore based, off shore, or shipboard use.

Also available for viewing will be the Dismounted Computer System (DCS), a multi-processor computer system capable of operating two different Operating Systems simultaneously designed for installation in military vehicles and the Soldier Link System, a lightweight wearable communications system for ground forces.

The company will also be promoting its LPD San Antonio-class Amphibious Warfare and Transport ship and the International Patrol Frigate, a versatile warship based on the multi-mission National Security Cutter currently operated by the U.S. Coast Guard.

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

0210-058

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India To Invest In U.S. Towed Artillery Pieces

The U.S. military uses three primary artillery systems for its fire support. These are the M109 Paladin self propelled 155mm howitzer, the M270 Multiple Launch Rocket System (MLRS) in tracked and wheeled versions; and the M777 lightweight 155mm towed howitzer. All three of these systems have seen a great deal of use over the last twenty years and performed effectively. It was announced yesterday that India’s government intends to buy 145 of the M177 systems.

This contract will be worth over $600 million if fully executed. The M777 is made by BAE Systems and due to its weight and mobility is ideal to support Indian forces in mountainous regions and represents a significant technological upgrade to their existing inventory of Swedish, Russian and British systems.

India Relooking New Tanker Aircraft

India currently operates a version of the Ilyushin-76 transport aircraft as an aerial tanker. The Il-78 “Midas” has been in service with Russia and India for several years and is a rugged, fairly cheap solution. Recently the Indian government had proposed new tankers based on the Airbus A330 aircraft. The same tanker is being purchased by England and would be considered again by the U.S. Air Force for its KC-X competition.

Now it is reported that the Finance Ministry has raised some concerns over the cost of the A330 compared to the Il-78. Both aircraft were proposed for the contract and the Il-78 was the cheaper bid. The Ministry feels that the contract should be reconsidered on cost grounds and also due to the fact that India already operates the Il-78 making it easier to integrate the new tankers. It is assumed though that the A330 platform offers benefits in capability and technology level over the older Russian aircraft.

India has been planning on new investment in their Armed Forces utilizing the purchase of foriegn, Western equipment to quickly upgrade their technological level. At the same time new rules on offsets and foriegn investment means that their economy will gain through these deals. The most important contract that is out there is for a new fighter which is currently undergoing the early stages of competition. Several U.S. and European companies as well as MiG have submitted bids.

It might be that the Indian Government decides that the higher cost of the A330 is worth it if the capability purchased is significantly enhanced.

Cobham to Enhance its Presence in India — Press Release

Cobham to Enhance its Presence in India

DELHI, India – Cobham is significantly enhancing its existing presence in India through the establishment of a wholly owned subsidiary, Cobham India Private Limited. With offices in New Delhi and Bangalore, Cobham India Private Limited will open during the first quarter of 2010.

“Cobham is committed to building a significant long-term investment in India,” said Andy Stevens, who takes over as CEO of Cobham plc in January 2010. “We already knew that India was one of our most important export markets, however, our Liaison Office in New Delhi, which we opened in 2008, has given us a much better understanding of the needs of our customers and partners. As a result, we have decided to significantly enhance our permanent presence in India in 2010. Looking to the future, we plan to increase our industrial participation, strengthening cooperation with both public and private sector companies.”

Cobham India Private Limited will provide all Indian customers with a single point of contact resulting in closer working relationships with key customers and partners such as Hindustan Aeronautics Limited, Bharat Electronics Limited and the Indian armed forces. Focusing on long-term strategic partnerships that create sustainable value to Indian industry, Cobham is also actively engaged in pursuing technical and business partnerships with private Indian companies and institutions.

Andy Stevens adds, “We recognise that defence offset is an important issue for the Indian Government. Part of the remit of Cobham India Private Limited includes putting in place structures and processes to ensure that we are well positioned to respond to defence offset commitments.”

Cobham is currently pursuing opportunities across all sectors of the Indian market: defence, security and commercial aerospace.

About Cobham:

Cobham’s products and services have been at the heart of sophisticated military and civil systems for 75 years, keeping people safe, improving communications, and enhancing the capability of land, sea, air and space platforms. The Company has four divisions employing more than 12,000 people on five continents, with customers and partners in over 100 countries and annual revenue of more than £1.4bn / $2.1 billion.

Contacts:

Greg Caires
Julian Wais
Media Relations
Investor Relations

+1 703 414 5319
+44 (0) 1202 857998

greg.caires@cobham.com
julian.wais@cobham.com

Israel To Provide Naval SAMS to India

It is reported that the Indian Government is planning on signing a deal with Israel to provide Barak naval Surface-to-Air Missiles (SAMS). The reported contract is worth over $1 billion. Israel has long made efforts to export its indigenous arms in order to facilitate their development and lower the cost to the domestic military. India has turned to non-traditional arms suppliers in an effort to upgrade the technology levels of their equipment.

In the past India has purchased a great deal of weapons from Russia and England while trying to develop its own arms industry. Now it is buying from the United States and Israel. The Israelis have already signed a large deal for modern airborne radar and surveillance aircraft. They had also bought land based SAMs as well from Israel. This deal if it goes through will provide a significant capability to the Indian Navy.

Mahindra Satyam And SAAB To Collaborate On Indian Military Programs

The Indian IT company Mahindra Satyam has signed a Memorandum of Understanding (MOU) with SAAB to establish a working relationship in India. The agreement means that Satyam will help SAAB develop and market products in India and perhaps to customers outside of that South Asian country. India has recently been looking at changing their laws in order to allow more of these kind of deals.

The first program the two companies will work on will be a Battle Management System (BMS) for India’s ground forces. This will be a SAAB developed and previously deployed system. Satyam will aid in any required changes and provide support to the product. The two companies have set up a joint Center to help market their products and help develop new ones.

This MOU also allows easier penetration of the Indian military and market as the assistance of a domestic company allows more flexibility in the awarding of contracts and work. India and its companies will gain by being exposed to products and the abilities they gain by developing systems and deploying them.

Selling Overseas To Make Up For Coming U.S. Defense Cuts

Arizona is a top beneficiary of defense dollars. This is primarily due to Raytheon and Bell activities in the state. Raytheon makes missile defense systems and Bell helicopters. Now with the possibility that Obama’s cuts to the defense budgets starting in 2010 and out the companies there are looking overseas for work.

Unfortunately this will be the business plan for all defense contractors if their is a significant contraction in U.S. defense spending. The focus will be on selling systems and support to Asian, South American and Middle Eastern companies. India, Brazil, the U.A.E. and Qatar have already made major investments in U.S. and European equipment and there are several major contracts coming. In 2008 the U.S. already captured two-thirds of the market but overall purchases were the lowest they had been since 2005. If this trend continues due to the global downturn in the economy there may be less opportunity for these sort of sales.

These trends may lead to further consolidation of the defense industry in the U.S. and abroad as domestic and foriegn markets may not be able to support the amount of business built up since 2001 primarily by the United States. This will be the most important factor facing the industry which has not seen this situation since the early Nineties and the end of the Reagan arms build-up.

Lockheed Accelerates India’s C-130 Aircraft

India had purchased six C-130J transports from Lockheed Martin last year. This is part of that nation’s program to improve their armed forces through buying new technology from U.S. , European and Israeli suppliers. Along with the buy of the U.S. transports the Indian Government purchased P-8 Anti-Submarine Warfare (ASW) and patrol aircraft from Boeing. There is also a major fighter contract contest underway that has seen Lockheed bid their F-16 aircraft for as well.

Lockheed announced that they are accelerating the production and delivery of the six aircraft. It is hoped that the first one will be delivered in about two years. The hope is that by showing good performance it might drive India to execute the second buy option in the contract. This is for a further six aircraft. Lockheed is hoping that the new agreement between the two countries allowing U.S. control on technology sold to India will facilitate further deals.

U.S. And India’s Weapon Buying Relationship Moves Forward

As part of her diplomatic mission to India Secretary of State Hillary Clinton discussed a new agreement between the countries that will facilitate sales of U.S. weapons. This “end user monitoring” will make it possible for the U.S. to make sure that the Indian government does not sell its technology to a third party or misuse it for their economic gain. This type of agreement is fairly common among countries and allows sales to be made with some confidence.

India has embarked on a major upgrade to its military through acquisition of foriegn sourced weapons. This is a change from the past when the South Asian country tried to develop its own advanced weapons and relied on the U.K. and Russia. The decision to buy American, European and advanced Israeli technology allows India to leap forward in capability. As part of these contracts significant offsets are required of the selling companies through investment in the Indian economy.

Air Force Buys C-130J Engine Support From Rolls-Royce

The United States Air Force awarded an eighty million dollar contract to Rolls-Royce to provide spare engines and parts for the C-130J transport fleet. The C-130J is the most recent version of the venerable Hercules transport. This contract will provide support for the Air Force, Marines, Norway and India’s aircraft. Under this contract twenty-seven spare engines and other parts will be provided over the next three years.

Rolls-Royce also makes the engine for the V-22 Osprey tilt-rotor used by the Air Force and Marines. This completed its first combat deployment to Iraq last year where all reports show it performed adequately. The U.S. military and overseas customers are committed to purchasing more C-130J aircraft which will mean more engine sales and support for the British company.

India Releases Helicopter Requests For Proposals

India has released this week two separate Requests for Proposals (RFP) for new helicopters. The first one is to purchase twenty-two advanced attack helicopters. The second for fifteen heavy lift aircraft. India faces many of the same problems that the Allied forces in Afghanistan do because of the high, hot environments that aircraft must fly in.

The country had released a RFP last year for attack helicopters but withdrew after receiving non-responsive bids. India has looked at major upgrades to its armed forces by broadening the base of whom they buy from. Rather then relying primarily on Russian or British equipment Israel and the United States have begun to make inroads into the market. India also had invested heavily in domestic development and production but to get more technology faster has started buying overseas in greater amounts.

With the new proposals Boeing is considering a bid for each. They make the AH-64 Apache and CH-47 Chinook both heavily used in Afghanistan by the U.S. and Allies. Boeing is also looking at taking major hits in the Obama budget and will try to counter that with sales overseas.

Canadian Frigate Upgrade Goes International

The Canadian Navy is conducting a modernization program for their Halifax class frigates. Lockheed Martin Canada has won the contract to upgrade the electronics and command and control systems on board the ships. As part of this that company awarded the Israeli based Elbit Systems subsidiary, Elisra Systems, a contract for electronic warfare equipment.

That contract is worth about $55 million. Israel has had to develop a fairly sophisticated indigenous arms industry that covers all aspects from large weapon systems to small arms to electronics. In the last few years those companies have started to win foreign contracts. India recently has turned to Israel for an Airborne Early Warning (EAW) system. This contract demonstrates how capable the Israeli industry is, and is probably a sign of more such contracts to come.

India Rejects Rafale For New Fighter

Update — Flight International is reporting that India says it has not ruled out any competitor in the program.

The Indian Air Force is looking to purchase an advanced fighter to add to their inventory. Six foreign companies had submitted bids for the 126 aircraft order. Now word comes that the French proposed Dassault Rafale was eliminated from the competition. The Indianexpress.com reports that publicly it was stated the aircraft did not meet certain “qualitative” requirements. It was also said that the proposal submitted showed the aircraft did not meet some of the technical requirements for the program. This means that the contest will continue with Boeing, Lockheed Martin, SAAB, MiG and Eurofighter participation for now.

The deal is one of several that India is proceeding with in an attempt to upgrade the technical capability of their armed forces. In the past the country had tended to buy from Russia or England. India has also spent the last several years developing an indigenous arms industry. Although lately they have turned to outside sources to include Israel and the U.S. for advanced weapons.

Currently there are several nations looking at buying advanced fighters. The Rafale has not been bid for many as most of the competition has been between the F/A-18G, SAAB Gripen, F-35 JSF and the Eurofighter Typhoon. The Indian contract is certainly one of the largest percolating.

Aero India International Show Attracts Fighter Bidders

The six companies that submitted proposals for India’s new Medium Multi-role Combat Aircraft (MMRCA) contract will all be in attendance at the Aero India International Show. The Economic Times reports that the competitors for the potential $10 billion contract will be at the show along with a host of other U.S. and European companies. Boeing, Lockheed, EADS, SAAB, Dassault and MiG all submitted proposals for the program. The theme of the show will be business activity between Indian and foreign companies. This contract is now one of the largest for tactical aircraft out for bid, and the companies will be touting their wares at the show.

India Buys Russian Helicopters

The Indian Government announced that it had signed a contract to purchase 80 Mi-17 Hip medium lift helicopters. The Times of India reports that the government is also renegotiating the contract to refit and upgrade the former Russian ship Admiral Gorshkov. Read more

Indian Offset Policy Leads to Israeli Contract

Israeli company ELTA Systems placed a contract with Astra Microwave worth about $11 M for components. This is due to the offset provisions in Indian law for foreign firms winning contracts. MarketWatch.com has the press release. Israeli companies won a major contract to provide airborne radar and surveillance aircraft from India recently and this award may be an offset for that contract. Read more

India steadily increases defense spending

The headline on this article in the Daily Telegraph is a little misleading once you read it. India is on a path to more then double defense spending in the next twenty years, where it will be higher then the current UK’s budget. For India to exceed Britain’s budget it would take the UK holding spending steady, and actually adjusted for inflation, reducing it. It is certainly possible to imagine that the UK, and the US for that matter, may have to reduce spending as the budgetary reality catches up to them regarding the cost of social services and deficit spending. The other point of the story the money that India is putting into updating and modernizing their military by moving to buying advanced Western weapons rather then relying on Russian and indigenous producers is probably more important then the amount of spending.

The article by David Blair and Thomas Harding can be found here.

India goes with AW for new VIP aircraft

Like the US Navy, India awarded a contract to Augusta Westland for their new VIP transport helicopter. The contract is worth about $300 M. Sikorsky was one of the unsuccessful bidders with their S-92 aircraft. The EH-101 selected will offer a larger cabin, although it is a more expensive aircraft. US companies have been trying hard lately to break into the Indian market as that country has turned away from its traditional English and Russian suppliers. India has also made a great effort to begin developing a sophisticated, indigenous arm suppliers.

See The Hartford Courant article about this contract here.

India moves to limit middlemen in contracts

India already loosened their offset requirements leading to progress on the new fighter contract. Now the government moved to limit the use of Indian representatives or “agents” in helping the foreign companies with their bid. The six teams that submitted proposals are moving to line up Indian companies to support their fabrication and delivery of the aircraft. By limiting these agents the Indian government hopes to make the process more open and increase the ability of non-Indian companies to use their industry.

See Central Chronicle for more.

Six bids for India’s new advanced fighter

With the decision here to relax the off set provisions required for work on Indian defense contracts India received six new proposals for their new advanced fighter aircraft, the MMRCA. See a story here. Boeing, Lockheed Martin, EADS, MiG, SAAB and D’Assault submitted proposals. Aircraft from these companies are currently under evaluation with a decision to be made in the next several months.

India changes offset reqirements

August 3, 2008 by Matthew Potter · 1 Comment
Filed under: India, production program 

Looking at several major contracts to be awarded in the next ten years, India’s government has decided to relax their offset requirements. See a story here. As previously discussed here, India had been demanding major off set investments that some foreign companies felt were too difficult to meet. Now the government will allow companies to just hold funding to meet the offset requirements. This will make it easier for companies to bid on the contracts.

Renewed helicopters for India

India has decided to put out an RFP for light helicopters after all the back-and-forth. See an article here. As previously discussed the planned acquisition was canceled, then planned again, and now it will be for a reduced number than the last attempt. Now rather then going with a 100% foreign buy the contract will be split between a non-Indian company and HAL. One positive of this is that they plan to limit the tech transfer, requirements that recently have been seen as onerous, to only those for the support of the aircraft.

Boeing Indian contract cancelled due end-user agreements

India canceled a contract with Boeing for P-8 maritime patrol aircraft due to disagreements over end-user limits on the US technology involved. See an article here. The $2.2 B contract was ready to go for final approval when talks broke down over how to review equipment to prevent technology transfer. India objected to the harsh provisions. This does not mean that the contract could not be renegotiated, but it may be India turns to another provider.

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