Embraer looks an Indian supply chain base

PR: A high-level delegation from Embraer is concluding a visit to India this week as it evaluates the expansion of its supply chain into the country. Embraer foresees potential suppliers across its defense, commercial aviation and executive jets businesses for areas such as aerostructures, machining, sheet metal, composites, forgings, wire harness, and hardware and software development, recognizing that aerospace engineering capabilities are clearly present and available in the country. The visit comes amidst burgeoning relations between Brazil and India.  

“India has a robust aviation and defense industry, and we see strong viability for manufacturers and systems developers in India to be key suppliers to Embraer,” said Roberto Chaves, Executive Vice-President of Global Procurement and Supply Chain at Embraer. “We are driven by a common vision, which is to drive the aviation capabilities of Brazil and India to greater heights, and to deliver value to our customers around the world.”  

India is a strategic market for Embraer in all its business segments. The Embraer footprint in the country surpasses 44 aircraft, including customers in Commercial Aviation, Executive Jets and Defense & Security. In particular, the Indian Government and Indian Air Force operate a fleet of 5 Embraer VIP jets and 3 EMB 145 AEW “Netra” military aircraft, respectively. 

One of Embraer’s key future opportunities in India is the Indian Air Force MTA (Medium Transport Aircraft) program, in which Embraer is well-positioned to offer the best in class, modern C-390 Millennium transport aircraft in partnership with the very reputed Indian company Mahindra. The two companies announced their partnership back in February 2024. 

Embraer sees India as a key partner in the region and expects, together with Mahindra, to implement an extensive local supply chain program. This initiative may include an assembly line for the C-390 in India, when selected for this program. Tied with a local long-term support program offer, Embraer and Mahindra aim to fulfill the expectations of the “Make in India” initiative of the Indian Government.

• We have been waiting for Embraer to make this move for some time.
• In our view, setting up an FAL in India is inevitable. Embraer is taking steps guiding to this.
• Embraer is evaluating expanding its supply chain to India to produce parts for commercial, executive, and defense programs.
• This could include components and software. Moreover, Embraer is considering a C-390 assembly line in India.
• Embraer is hitting a new stride. Its finances are strong, and it is part of a geopolitical group with India through Brazil.  The timing is right.
• India has aerospace ambitions, and Embraer will likely be more accommodating to these than Airbus or Boeing.  The big OEMs have Indian footprints but aren’t ready to engage with the “Make in India” policy as Embraer might be.
• Another consideration is that Embraer’s military capabilities align with India’s needs.  As we have heard, Embraer needs India to make an appropriate commitment. With that in place, Embraer can match this commitment.  In other words, when India makes a big C-390 order, Embraer can collaborate with local Indian partners for a FAL.
• All it takes is the initial step, which India needs to take. That first step could potentially lead to a lot more than C-390 co-production.

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Addison Schonland Partner

Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.

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