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Wipro inks agreement with CESA to produce aerospace actuators & components Print E-mail
Written by Arjun   
Thursday, 26 May 2011
Bangalore: Wipro Infrastructure Engineering (a division of Wipro Ltd) has signed an agreement with Spanish company CESA (Compania Espanola De Sistemas Aeronauticos S.A.), a subsidiary of EADS, for the manufacture of precision engineered components for the aerospace and defence sector.

"We shall be investing about $ 15 million in the initial phase in establishing a greenfield venture for the manufacture of these components in the new SEZ for aerospace being set up at Devanahalli by the Karnataka Govt. Our plan is t start serial production towards end of 2012," said Pratik Kumar - President, Wipro Infrastructure Engineering.

The agreement involves transfer of technology as well as manufacturing workload for aerospace actuators and related precision engineered components from CESA to Wipro.

"Apart from the advantage of having a strong outsourcing partner for our current programmes, EADS and CESA will also have a reliable and credible partner to meet offset obligations in India. Further, the Wipro - CESA combine will be able to jointly explore new and emerging opportunities in the Asia Pacific and other emerging markets,"said Jose Leal, Managing director of CESA.

This new project of Wipro in aerospace and defence will be a part of Wipro Infrastructure Engineering - an established manufacturer of precision engineered hydraulic actuators and components. It's customers include global Original Equipment Manufacturers (OEMs) of Construction & Earth-moving equipment, Material Handling equipment, farm & agricultural machines, mining equipment, industrial machinery, medium and heavy commercial vehicles among other sectors in Asia-Pacific and Europe.

"Aerospace and defence is a huge opportunity area or us to leverage our core competencies in precision engineering and manufacturing and supply components to tier-1 systems providers. Growth in this industry will be driven by offset opportunities as well as growth in the A&D space in India and other emerging markets in the Asia pacific region," Pratik Kumar said.

"A tie-up with a global manufacturer like CESA, which will include a transfer of some of the existing manufacturing programmes of CESA to the new venture, will help Wipro to hit the ground running and avoid the typically long gestation periods in the A&D industry. This is a niche product segment which does not have any other manufacturers in India and could throw up partnership opportunities with many global OEMs/ tier-1s who are looking for credible and experienced partners in the country. We are setting up this business to address the outsourcing opportunities in the global A&D space where OEMs and tier-1s are looking at extending supply chains to competitive cost countries like India," said Sunil Rajagopalan - Business Head for Aerospace and Defence, Wipro.

Aerospace actuators are used in various applications in aircrafts, including in the landing gear, flight control systems, engines ad various utilities.

Last Updated ( Thursday, 26 May 2011 )
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