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What is the story about?
The battle to power India's ambitious Advanced Medium Combat Aircraft (AMCA) programme has entered a critical phase, with Rolls-Royce promising full technology transfer and intellectual property creation in India if it wins the contract.
The UK-based aerospace and defence engine maker has proposed developing the AMCA engine through a partnership involving the Indian government, the Gas Turbine Research Establishment (GTRE) and an Indian industrial partner, while committing to have a flight-ready engine by 2034.
Speaking to exclusively to CNBC-TV18, Sashi Mukundan, Executive Vice President for transformation in India at Rolls-Royce, said the company's proposal extends beyond supplying an engine and seeks to establish a complete aero-engine ecosystem in the country.
"The AMCA engine will be central to our proposal, but we want to establish what we call an aero gas turbine complex in India," Mukundan said.
The proposed complex would include design, development, manufacturing and aftercare facilities, alongside a domestic supplier ecosystem, in what could become one of the most significant technology transfers in India's defence sector.
The AMCA fighter programme is among India's most strategically important military projects as the country seeks to develop an indigenous fifth-generation combat aircraft and reduce dependence on foreign propulsion technologies. Engine development remains one of the most challenging areas of aerospace manufacturing globally, with only a handful of companies possessing the expertise to design and produce advanced fighter jet engines.
Mukundan said Rolls-Royce has offered "full transfer of technology" backed by support from the UK government and is willing to develop intellectual property in India.
"We have said that we will provide full transfer of technology and develop intellectual property in India," he said.
While the company is awaiting a government decision on the programme, Mukundan indicated that winning the AMCA contract would accelerate broader manufacturing and capability-building plans in India.
The AMCA proposal comes as Rolls-Royce expands its industrial footprint in the country. Through its joint venture with Hindustan Aeronautics Ltd (HAL), International Aerospace Manufacturing Pvt Ltd (IAMPL), the company recently expanded its second manufacturing facility in Hosur, Tamil Nadu.
The venture currently manufactures more than 200 precision aerospace components for Rolls-Royce's global operations.
"We have just expanded our second factory. Our first factory is in Bengaluru, the second is in Hosur, and we have expanded the Hosur plant to a larger capacity. Now we're thinking about plants three, four and five," Mukundan said.
Also Read | India opens AMCA stealth fighter programme to private sector, challenging HAL dominance: Report
The company plans to add further facilities around existing manufacturing locations as it scales production and deepens localisation efforts.
Rolls-Royce currently works with around 100 suppliers in India and is targeting sourcing worth more than $1 billion from the country within the next five years. According to Mukundan, future expansion will involve integrating existing suppliers, upgrading capabilities of current vendors and developing entirely new supply chain segments.
The UK-based aerospace and defence engine maker has proposed developing the AMCA engine through a partnership involving the Indian government, the Gas Turbine Research Establishment (GTRE) and an Indian industrial partner, while committing to have a flight-ready engine by 2034.
Speaking to exclusively to CNBC-TV18, Sashi Mukundan, Executive Vice President for transformation in India at Rolls-Royce, said the company's proposal extends beyond supplying an engine and seeks to establish a complete aero-engine ecosystem in the country.
"The AMCA engine will be central to our proposal, but we want to establish what we call an aero gas turbine complex in India," Mukundan said.
The proposed complex would include design, development, manufacturing and aftercare facilities, alongside a domestic supplier ecosystem, in what could become one of the most significant technology transfers in India's defence sector.
The AMCA fighter programme is among India's most strategically important military projects as the country seeks to develop an indigenous fifth-generation combat aircraft and reduce dependence on foreign propulsion technologies. Engine development remains one of the most challenging areas of aerospace manufacturing globally, with only a handful of companies possessing the expertise to design and produce advanced fighter jet engines.
Mukundan said Rolls-Royce has offered "full transfer of technology" backed by support from the UK government and is willing to develop intellectual property in India.
"We have said that we will provide full transfer of technology and develop intellectual property in India," he said.
While the company is awaiting a government decision on the programme, Mukundan indicated that winning the AMCA contract would accelerate broader manufacturing and capability-building plans in India.
The AMCA proposal comes as Rolls-Royce expands its industrial footprint in the country. Through its joint venture with Hindustan Aeronautics Ltd (HAL), International Aerospace Manufacturing Pvt Ltd (IAMPL), the company recently expanded its second manufacturing facility in Hosur, Tamil Nadu.
The venture currently manufactures more than 200 precision aerospace components for Rolls-Royce's global operations.
"We have just expanded our second factory. Our first factory is in Bengaluru, the second is in Hosur, and we have expanded the Hosur plant to a larger capacity. Now we're thinking about plants three, four and five," Mukundan said.
Also Read | India opens AMCA stealth fighter programme to private sector, challenging HAL dominance: Report
The company plans to add further facilities around existing manufacturing locations as it scales production and deepens localisation efforts.
Rolls-Royce currently works with around 100 suppliers in India and is targeting sourcing worth more than $1 billion from the country within the next five years. According to Mukundan, future expansion will involve integrating existing suppliers, upgrading capabilities of current vendors and developing entirely new supply chain segments.
