By Kamal Shah
Having seen the potential in the Indian military hardware market and the government’s intent to be self-sufficient while encouraging joint ventures top-shelf companies like Lockheed Martin have displayed great foresight in establishing their credentials as favoured partners in several initiatives.
In this far-reaching in-depth interview with William Blair, Vice President and chief executive for Southeast Asia and India held on-site at the recently concluded Singapore Airshow 2024, he explains the company’s ‘India’ strategy and its commitment to the ‘Make in India’ initiative.
1. Lockheed Martin has provided India with a range of advanced defence technologies across various domains to enhance the country’s military capabilities. These technologies have supported the Indian armed forces in areas such as aerospace, naval systems, missile defence, and strategic capabilities. What other plans are in the pipeline vis-a-vis the Make in India initiative?
A. Indeed, it is an excellent question. We take great pride in our participation in the Make in India initiative. Indeed, throughout the last twenty years, the focus has been on forming alliances not just with major defence corporations. We have a strong cooperation with Tata Advanced Systems Limited and our joint venture, Tata Lockheed Martin Aerostructures Limited, is responsible for manufacturing the C 130 J empennage in Hyderabad. During the past 14 years, we have successfully produced and delivered more than 200 empennages, while also increasing the proportion of locally sourced components. In order to do this, we needed to enhance and broaden the network of suppliers in the aerospace and defence sectors, similar to what we accomplished with the manufacture of the S 92 cabin. The manufacture of helicopter cabins was relocated from Japan to India. We have constructed a significant quantity of S 92 cabins, and in each instance, we have augmented the domestic production, once again collaborating with MSMEs and even fledgling companies. Currently, this serves as a basis for next initiatives. There is a significant demand for the medium transport aircraft, known as the MTA. Our C 130 J aircraft has consistently fulfilled its mission responsibilities with exceptional levels of availability and dependability within the Indian Air Force fleet.
The mission capability is highly distinctive, with the capacity to operate at high altitudes and land on unprepared runways, making it an excellent match for a significantly bigger demand. As you recapitalize the fleet of transport aircraft, we have identified the potential for acquiring between 40 and 80 aircraft. In order to do that, we will need to manufacture the aircraft in India. That is our dedication, which is also true for the various programmes we have been involved in. Another potential option, which builds upon the existing basis, is the multirole fighter aircraft. During my previous position, which began in the mid-2000s, I participated in the MMRCA campaign and contributed across several platforms throughout its duration. This is a significant and crucial need that falls between the light combat aircraft, the Tejas, and the other twin aircraft that are now the primary aircraft used by the Indian Air Force. We are enthusiastic about the chance to introduce our expertise in that location. The aircraft is referred to be the F 21, although we made investments in anticipation of the need, similar to what we did for the C 130 J. Last year, we announced that we would be producing fighter wings at our factory, Tata Lockheed Martin Aeronautics Limited (TLMAL).
This serves as a remarkable demonstration of our unwavering dedication, mirroring the commitment we made to the C 130 J aircraft 14 years ago.
2. F21 is still a very valid choice for the Indian Air Force. You made a very strong and realistic bid even promising not to sell it to any other customer. Is it still on?
A. Indeed, we are wholeheartedly dedicated to our F 21 product line. Our longstanding commitment, spanning about five to ten years, has been to not just manufacture the F-21 in India but also to actively contribute to a significant global fighter ecosystem in the area. Furthermore, we are certain that the C 130 J presents a lucrative export prospect, particularly for fulfilling India’s substantial demand. While it is crucial to acknowledge the significance of this endeavour, it is as imperative to recognize that by executing it correctly and efficiently with suitable collaborators, we have the potential to manufacture airplanes in India for international trade. That encapsulates the concept of producing goods in India for global consumption. I have already indicated the investment in the construction of fighter wings. One significant development in the past year has been GE Aerospace’s pledge to manufacture fighter engines in India. Indeed, those aircraft fall into the category of light combat aircraft, specifically the F 404 and F 414 models. However, this action is establishing a significant precedent and basis for the potential actions we might take with GE, our collaborative engine on the F 21.
And that is applicable to other systems as well. We already have established ties with other system providers for our electronic warfare capacity in India. What we are providing is a comprehensive platform that incorporates systems manufactured in India. This treatment is both long-lasting in terms of its effectiveness and its capacity to be maintained over time.
3. The C130 empennage manufacture has been successful. The Super Hercules is also part of India’s C-130J Roll-On/Roll-Off University Design Challenge. Through this initiative, Lockheed Martin has been offering research grants for teams from Indian universities to work with local industry partners and mentors from India’s Defence Research and Development Organisation. Do you have any plans to widen the scope from empennages to other specifics?
A. The initial aspect of your inquiry pertains to the partnership with universities. We take great pride in successfully involving colleges in a challenge and providing funding that will enable the development of a roll-on, roll-off capability. This capacity will not only suit the requirements of the Indian Air Force but also fulfill a worldwide need. As part of our approach, we created a very large composite bulk fuel tank with roll-on and roll-off capabilities. This tank has the potential to greatly affect humanitarian assistance and disaster response efforts. For instance, we also organized a drone challenge. Indeed, we have an event scheduled this week in New Delhi to honour the victors of the aforementioned drone competition. Our goal in these endeavours is to enhance competence. To actively participate in the fields of science, technology, and mathematics, and to really foster enthusiasm for STEM, particularly in the areas of military and aerospace. Lastly, we aim to collaborate with startups and identify disruptive technologies that can be developed by our young and inventive minds. These technologies will be the future capabilities that we aim to include in our future systems.
4. You also offered the THAAD (Terminal High Altitude Area Defence) system to address India’s missile defence requirements. What is the latest progress on that front?
A. We possess a substantial track record in terms of our capabilities in integrated air and missile defence systems. Undoubtedly, you are acquainted with the capabilities of the Patriot PAC 3 MSE. We have made extensive efforts to collaborate with India on their highly demanding and tense air and missile defence needs. We consider it as a stratified defence solution, specifically in terms of land-based implementation. This involves integrating and coordinating the PAC 3 MSE system as a lower layer beneath our Thad system, which is a Terminal High Altitude Area defence system. Therefore, it continues to be an excellent opportunity. I am aware that the Indian Air Force and the Indian Army are required to make their selections under specific time constraints. That is comprehensible. However, considering the future’s increasing and progressing dangers, it is imperative that we stay in step with them. Therefore, in our perspective, it is important to consider a multi-faceted approach that may effectively mitigate sophisticated security risks. India possesses immense capabilities that have been cultivated via the collaboration of DRDO, the defence public sector organizations, and the private sector in the development of integrated air and missile defence solutions. However, you may consistently explore alternative methods to incorporate more aspects that superimpose and offer a far higher degree of protection and complexity.
5. It would be fair to say you have a pole position where joint ventures are concerned with India’s military needs. From radar and sensors systems to maritime security to Satcoms and cyber security Lockheed has a foot in the door. How would you see this relationship flourishing in the future and are there specific strategic steps you are taking to make it even stronger?
A. I have previously discussed our two collaborative projects, namely Tata Lockheed Martin Aeronautics Limited (TLMAL) and Tata Sikorsky Aerospace Limited (TSAL). Through our collaboration with those two enterprises and our partnerships with Tata, we have played a pivotal role in fostering the growth of the aerospace and defence industry in India since its inception, even before the concept of Make in India was coined. We take great pride in our rich historical background. However, what is perhaps more significant is that we take great pride in our accomplishments. It has resulted in exports worth more than $650,000,000 from India to the US. That is a component of a significantly bigger export worth from original equipment manufacturers (OEMs) such as Lockheed Martin to the United States. Upon analyzing the data from the past five years, it is evident that around 27% of India’s exports in the aerospace and military sectors are directed towards the United States. When examining defence exports only from a defensive standpoint, more than 35% of India’s defence exports are directed toward the United States. In comparison, the percentage of defence exports to France is around 12-13%, while shipments to Russia and Israel are in the single digits. What is the significance or implication of that? This indicates that we have laid the groundwork for future cooperation and alliances based on a trustworthy track record of delivering results. We aim to be recognized not just for our successful execution and implementation of overseas military sales, but also for other accomplishments we take pride in. We are effectively implementing a genuine plan to deliver capabilities by making products in India and catering to the global market. In addition, I should have also noted the MH 60 Romeo, which serves as an excellent illustration. We constructed S 92 helicopter cabins in India as part of our collaboration with Tata Sikorsky. When the moment arrived to decide on the MH 60 Romeo, we had a solid groundwork that we could refer to when questioned about our current helicopter production in India. We aspire to elevate our current situation to a higher degree. We want to manufacture whole aircraft, including fighters, transport planes, and helicopters, within India. The competencies have been validated, the alliances have been established, and the track record is reliable and trustworthy. Therefore, I believe that we are currently in the optimal position to provide both value and capacity.
6. Lockheed Martin has a very wide and large supply chain industry where you would have an annual conference and more than 3000 supply chain vendors you have. Do you see an increase in those numbers?
A. We have organized and conducted the annual supply chain conference, which has provided us with a valuable chance to actively participate despite the challenges posed by the COVID-19 pandemic. We have discovered a method to do it by combining different elements or approaches. However, we are actively expanding the supply chain ties between India and the US, with a particular focus on our LM Ventures Organisation. LM Ventures is the means by which we actively involve and provide financial support to fledgling companies. Currently, we have established a startup ecosystem or a startup partnership that exists between the United States and India. We are now exploring methods to facilitate the growth and financial support of startups, a process that has been ongoing since 2007. The India Innovation Growth programme (IIGP) was established in 2007. Since then, we have provided support to companies, resulting in the creation of more than 350 agreements and producing a value of over $1 billion. Recently, I attended a panel where a startup mentioned that they were part of the initial group in 2007. They have since grown into a fully operational defence company in India, fulfilling the missile system needs of the Indian army and the Indian Air Force.
7. A word about your outreach and offset elements in the current multiple relationship.
A. We view offsets as a favourable prospect rather than a mere requirement. We are dedicated to fulfilling our offset obligations. However, we are primarily achieving the desired value through our partnerships and investments in the supply chain. This includes joint ventures, research and development investments, and efforts to expand the supply chain. Indeed, while we now possess a basis, we must elevate it to a higher degree.
8. Now, after spending a decade in India, how do you feel to be moving on and staying in Japan?
A. As previously said, I have accumulated thirty years of experience working both inside and outside of India in various aerospace and defence firms. After spending the past four years there, I am now transitioning to a more expansive position, yet I still feel a strong attachment to it. India bears significant responsibility in this matter. Despite being located in Tokyo, I frequently devote a substantial amount of my time there. However, it provides me with an opportunity to examine how we incorporate our strengths. We discuss the process of combining skills with partners that share similar goals and values. Frequently, there is mention of a quadrilateral alliance ensuring the preservation of a liberated and accessible Pacific region. Consequently, in my current position, I possess the capacity to accomplish this objective in a much more influential manner. Utilizing our expertise and workforce in India, Japan, Korea, Taiwan, Singapore, the Philippines, and Jakarta, we have established operations in these locations. Therefore, we strive to consider the effectiveness of our contributions and collaborations with like-minded allies in order to collectively and strategically avert conflicts. To possess a robust defensive and an exceptionally strong security stance.
