Aerospace Precision Components and Aerostructures Manufacturing Facility

Project Overview

An Indian aerospace consortium and a European aerostructures technology partner engaged IMARC Engineering to establish a greenfield aerospace precision components and aerostructures manufacturing facility in Kanpur District, Uttar Pradesh. The project was structured against the convergence of the Defence Production and Export Promotion Policy 2020 issued by the Ministry of Defence, the Uttar Pradesh Defence and Aerospace Manufacturing Policy 2018 supporting the six-node UPDIC framework (Kanpur, Lucknow, Aligarh, Jhansi, Chitrakoot, and Agra nodes), the Positive Indigenisation Lists released by the Ministry of Defence covering approximately 4,000 items mandating domestic sourcing across five successive lists issued from 2020 onwards, and the Public Procurement (Preference to Make in India) Order 2017 with aerospace and defence local content thresholds.

The project involved establishing 24 major aerostructure sub-assemblies per annum (covering fuselage panel sub-assemblies, wing structural components, and empennage parts) alongside 480,000 precision machined aerospace parts per annum across commercial aviation Tier-1 supply chain participation and Indian defence aerospace programmes including LCA Tejas, Su-30 MKI upgrade sourcing, C-295 transport aircraft components, and helicopter platform sub-assemblies. Site infrastructure was designed for Phase 2 expansion adding composite aerostructures manufacturing capability and Maintenance, Repair and Overhaul (MRO) services.

Client's Challenges

The client faced several specific challenges in establishing greenfield aerospace manufacturing in India:

• Aerospace precision machining requirements: Engineering precision 5-axis CNC machining of aerospace-grade aluminium, titanium, and specialty steel alloys to the tolerances required for structural aerospace components — typically requiring dimensional accuracy substantially tighter than general precision engineering, along with the associated tooling, inspection, and traceability infrastructure.
• Aerostructure assembly complexity: Engineering the assembly of major aerostructure sub-assemblies including precision drilling, structural fastening, sealant application, and dimensional verification with the associated jig and fixture infrastructure, dimensional measurement using laser tracker systems, and full aerostructure-level qualification testing.
• AS9100 and NADCAP certification pathway: Achieving AS9100 Rev D aerospace quality management system certification and NADCAP (National Aerospace and Defense Contractors Accreditation Program) accreditation across special processes including chemical processing, heat treatment, non-destructive testing, and welding — extended-duration certification pathways that define aerospace customer market entry timelines.
• Dual-market qualification: Simultaneously achieving Indian defence aerospace certifications (CEMILAC Type Approval for military aircraft components and applicable DGCA airworthiness certification for civil aviation) alongside international AS9100 and Tier-1 aerospace customer supplier audit qualifications required for commercial aviation Airbus, Boeing, and Embraer supply chain participation.
• Specialty material supply security: Managing supply of aerospace-grade specialty materials — aircraft-grade aluminium alloys (2XXX, 6XXX, 7XXX series), titanium alloys (Ti-6Al-4V, commercially pure titanium), specialty steels, and aerospace fasteners — with the associated aerospace supplier qualification and traceability documentation.
• Workforce build-up: Recruiting 540 personnel including aerospace precision machinists, aerostructures assembly technicians, quality and airworthiness specialists, and NDT (non-destructive testing) specialists in the Kanpur regional labour market that hosts IIT Kanpur, HAL Kanpur, and the surrounding aerospace and defence engineering ecosystem.

What We Did

• Pre-Investment and Strategic Advisory

Our feasibility study evaluated different locations across four Indian states, Uttar Pradesh, Tamil Nadu, Karnataka, and Maharashtra, with Uttar Pradesh selected on the strength of the historically established defence infrastructure.

Kanpur aerospace and defence ecosystem the dedicated UPDIC framework benefits and Uttar Pradesh Defence and Aerospace Manufacturing Policy incentive structure, established rail and road logistics for aerospace component distribution, and access to the emerging Indian aerospace supplier ecosystem. CapEx planning of INR 880 Crore covered the precision machining hall, the aerostructures assembly bay, the surface treatment and non-destructive testing area, the metrology and quality laboratory, the warehouse, and central utilities. Financial modelling demonstrated post-tax IRR of 19.6 percent at full ramp with a 6.2-year payback.

• Engineering and Design Services

IMARC designed a 32,000 sq.m built-up facility on a 18-acre plot comprising the precision machining hall (12,000 sq.m housing 32 five-axis CNC machining centres alongside Swiss-type lathes, wire-EDM, and precision drilling stations), the aerostructures assembly bay (7,200 sq.m housing dedicated fixtures for the major sub-assembly families), the surface treatment and non-destructive testing area (4,800 sq.m covering chemical processing, heat treatment, penetrant testing, ultrasonic testing, and radiographic testing), the metrology and quality laboratory (2,400 sq.m housing coordinate measuring machines, laser tracker systems, and surface roughness measurement), and the warehouse and outbound logistics area.

Process utility design covered 8 MW grid demand supplemented by a 2 MW captive rooftop solar array, precision compressed air and hydraulic supply for the machining operations, dedicated specialty gas supply for the surface treatment and heat treatment operations, precision temperature and humidity HVAC across the assembly and metrology zones, and integrated MES for aerospace-grade lot traceability aligned with AS9100 and CEMILAC recall management requirements.

• Procurement and Supply Chain Support

We executed a multi-geography procurement programme across 58 critical vendors. Five-axis CNC precision machining equipment was sourced from established European and Japanese specialists with documented aerospace industry references. Aerostructures assembly fixtures and drilling systems were sourced from European aerospace equipment specialists. Surface treatment, heat treatment, and non-destructive testing equipment was sourced from a combination of European and specialty US suppliers.

Metrology infrastructure covering coordinate measuring machines and laser tracker systems was sourced from European and US precision-metrology specialists. Component sourcing was structured to optimise Positive Indigenisation Lists compliance and Public Procurement local content: aircraft-grade aluminium alloys and specialty steels from qualified Indian aerospace-grade metals specialists, titanium alloys from a combination of Indian and international sources, aerospace fasteners from Indian and international specialists with aerospace supplier qualifications, and specialty avionics components from international specialists under structured long-term agreements. Domestic Content reached 54 percent in Year-1 operations and 62 percent in Year-2 as the Indian aerospace supplier ecosystem developed.

• Project Execution and Site Management

Our turnkey project management delivered 26 months from groundbreaking to first commercial dispatch, coordinating civil construction, mechanical and electrical erection, precision utility infrastructure installation, equipment integration, and phased commissioning across the machining, aerostructures assembly, surface treatment, non-destructive testing, and metrology zones.

Phased commissioning ran the precision machining hall first (as the critical-path bottleneck for first product qualification), followed by the aerostructures assembly bay, then the surface treatment and non-destructive testing area, and finally the metrology and quality laboratory with progressive AS9100, NADCAP, CEMILAC, and DGCA qualification campaigns across the commercial aviation and defence aerospace product families.

Multi-vendor coordination across European, Japanese, US, and Indian contractors required a 22-strong owner's engineering team supplemented by 12 European resident engineers from the aerostructures technology partner during the precision machining, aerostructures assembly, and initial certification campaign phases.

• Compliance, Quality and Sustainability

IMARC led certification readiness across AS9100 Rev D aerospace quality management system certification — completed by month 16 of operations — NADCAP accreditation across chemical processing, heat treatment, non-destructive testing, and welding special processes completed in Year-1 and early Year-2, CEMILAC Type Approval for applicable defence aerospace components, DGCA airworthiness certification for applicable civil aviation components, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO 50001:2018 management system certifications, Positive Indigenisation Lists supplier registration for the applicable defence aerospace product families, and Tier-1 aerospace customer supplier audit clearances across commercial aviation supply chain qualifications.

Environmental compliance covered Uttar Pradesh Pollution Control Board Consent to Establish and Operate, Hazardous Waste Authorisation for surface treatment chemistry residues and precision machining coolant management, and Extended Producer Responsibility commitments.

The facility achieved IGBC Gold certification through 2 MW captive rooftop solar covering approximately 20 percent of facility daytime energy demand, 72 percent process water reclamation through closed-loop machining coolant and surface treatment rinse recovery, heat recovery from surface treatment and heat treatment operations, and 16 percent lower facility energy intensity versus the ASEAN aerospace manufacturing industry benchmark.

Final Results

Operational Performance

The facility achieved mechanical completion in 26 months with first commercial dispatch in month 27. Full 480,000 precision machined parts and 24 aerostructure sub-assembly nameplate capacity was reached at 76 percent utilisation by month 22 of operations, with sustained first-pass yield of 97.8 percent at precision component level and 96.4 percent at aerostructure assembly level. AS9100 Rev D certification was secured by month 16, NADCAP accreditation across special processes was completed in Year-1 and early Year-2, CEMILAC and DGCA airworthiness certifications were secured for applicable product families, and successful supplier qualification audits were passed with three Indian defence aerospace programmes, two Tier-1 civil aviation OEMs, and one global commercial aviation supply chain partner across the first operational year.

Financial Outcomes

Final CapEx of INR 840 Crore delivered 4.5 percent savings against the INR 880 Crore budget through optimised civil packaging, disciplined Indian-fabrication leverage across the structural and precision utility scope, UPDIC framework infrastructure benefits, and multi-vendor procurement under the Positive Indigenisation Lists framework. Year-2 revenue of INR 1,100 Crore was generated at an EBITDA margin of 16 percent, consistent with established Indian aerospace precision manufacturer reporting and supported 32 by the specialty aerospace pricing premium alongside the defence and commercial aviation demand pipeline.

Market Access

Long-term supply contracts were signed with three Indian defence aerospace programmes covering LCA Tejas, Su-30 MKI upgrade sourcing, and C-295 transport aircraft components under the Positive Indigenisation Lists framework, two Tier-1 civil aviation OEMs supplying the Indian commercial aviation supply chain participation programme, and one global commercial aviation supply chain partner covering committed Tier-1 aerostructure sub-assembly offtake. Export share reached 32 percent of revenue by Year-2 through the global commercial aviation Tier-1 supply chain participation and select MENA and Southeast Asian defence aerospace export entries. The facility positioned itself as a strategically important Indian aerospace manufacturing capability supporting both the domestic defence aerospace localisation programme and the commercial aviation Tier-1 export supply chain.

Sustainability Impact

Our integrated design, combining 2 MW captive rooftop solar covering approximately 20 percent of facility daytime energy demand, heat recovery from surface treatment and heat treatment operations, variable-frequency drives across HVAC and process pump and fan systems, precision temperature-controlled HVAC engineered for aerospace-grade requirements at minimum energy intensity, and LED lighting throughout, achieves 16 percent lower facility energy intensity versus the ASEAN aerospace manufacturing industry benchmark. Process water reclamation reaches 72 percent through closed-loop machining coolant and surface treatment rinse recovery. Specialty aerospace-grade metal swarf from precision machining is recovered and recycled through structured arrangements with the upstream aerospace metals suppliers. The facility holds IGBC Gold certification and operates structured aerospace lifecycle material management partnerships aligned with the emerging Indian aerospace circular economy framework.

Strategic Impact

The project established a significant greenfield Indian aerospace precision manufacturing capability positioned at the intersection of India's structural aerospace demand drivers, the Positive Indigenisation Lists driving domestic sourcing across approximately 4,000 items over five successive lists issued since 2020, the growing Indian commercial aviation supply chain participation trajectory as global aircraft OEMs deepen Indian sourcing under the Airbus Tier-1 supplier programme and equivalent Boeing engagement, and the emerging defence aerospace export programme under the Defence Production and Export Promotion Policy 2020.

Year-2 revenue of INR 1,100 Crore, AS9100 and NADCAP certifications, CEMILAC and DGCA airworthiness clearances, and the secured defence and commercial aviation supply commitments led the client to approve Phase 2 expansion comprising composite aerostructures manufacturing capability and Maintenance, Repair and Overhaul (MRO) service integration.

IMARC Engineering's end-to-end EPCM advisory, combining precision aerospace manufacturing engineering, dual-market qualification pathway support, Defence Production Policy and Positive Indigenisation Lists framework navigation, AS9100 and NADCAP certification pathway support, and disciplined multi-vendor execution, enabled the client to anchor a strategically important Indian industrial asset in a sector where certification rigour and dual-market qualification complexity have historically restricted the entry pathway for first-time Indian aerospace manufacturers.