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Indian Commercial Aviation Suppliers Market to Grow Exponentially Spurred by Low Labor and Manufacturing Costs, Says Frost & Sullivan

Posted on: Tuesday, 5 May 2009, 03:30 CDT

MUMBAI, India, May 5 /PRNewswire/ -- The commercial aviation suppliers market in India is set to grow exponentially at a compound annual growth rate (CAGR) of 16.1 percent from 2007 to 2014. Low manufacturing and labor costs are expected to boost outsourcing to India. Labor costs in India are relatively lower when compared to the western countries. India also enjoys a geographical advantage over other countries that enables it to cater to the demands of countries in South Asia as well as the Middle East. The offset policy of the Government can help India attract significant investment in the sector.

New analysis from Frost & Sullivan (http://www.financialservices.frost.com), Indian Commercial Aviation Supplier Market Outlook reveals that this market earned revenues of US$1,360.00 million in 2007 and is anticipated to reach US$3,888.60 million in 2014. The three segments covered in this research are component suppliers, design suppliers, and maintenance, repair, and overhaul (MRO). Component suppliers are projected to be the fastest-growing segment.

If you are interested in a virtual brochure, which provides a brief synopsis of the report and a table of contents, then send an e-mail to Ravinder Kaur / Nimisha Iyer, Corporate Communications, at ravinder.kaur@frost.com / niyer@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

"The recent opening of the market to private participation and India's ability to attract foreign direct investment (FDI) has been the main driver in market expansion," says Frost & Sullivan Financial Analyst R. Madusudanan. "Indian participants can leverage on the advantages of lower labor costs and strategic location to make India an export hub."

A major restraint for market participants is the competition from the South East Asian and Middle Eastern countries. The inconsistent order flow and longer gestation period also act as deterrents. The lack of technical know-how is another challenge faced by the participants.

India should build sufficient excess capacity to cater to the demands of the South East Asian and Middle Eastern countries. Although the gestation period for the projects tends to be longer, the returns are usually high, in the band of between 15.0 to 20.0 percent.

"Local participants lack the technical expertise to execute complex tasks on their own," concludes Madusudanan. "Therefore, joint ventures with foreign participants will enable local firms to more effectively confront challenges, by ensuring the transfer of technology."

Indian Commercial Aviation Supplier Market Outlook is part of the Financial Benchmarking in the Aerospace & Defense Industry subscription, which also includes research services in the following markets: Global Financial Outlook - 2009 and Global Commercial Aviation Electrical Power Systems and Infrastructure Market and Infrastructure Market - Investment Analysis. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan's Business and Financial Services group serves clients around the world in all aspects of financial analysis, market research and monitoring, due diligence, idea generation, opportunity analysis, investment valuation, and other proprietary research.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

SOURCE Frost & Sullivan (India) Pvt. Ltd.

Source: PR Newswire

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