Newstrack

Global MRO major Lufthansa Technik to set foot on Indian soil

Shauvik Ghosh - New Delhi

Lufthansa Technik, the world's largest maintenance, repair and overhaul (MRO) company, will set up a facility in the country, in a joint venture with the Hyderabad-based GMR group. This will be the country's first foreign-owned, airport maintenance facility.

In the joint venture, Lufthansa Technik will have a 75 per cent stake, while the rest will be held by its Indian partner. Both the companies are expected to invest Rs 100 crore in the venture in the initial phase. The 20,000 square metre facility will be located at the New Hyderabad International Airport in Shamshabad, Andhra Pradesh. The facility will provide base maintenance services (including C- and D-checks) for the Airbus A320 family and Boeing 737 aircraft - including 737 Classic and 737 NG (next generation) and is expected to commence operations by the end of 2008. At present, Lufthansa Technik serves the Indian carriers through its facilities outside the country. The Indian MRO market is projected at around US$ 100 million a year at present, and is expected to grow by at least 15 per cent over the next three years.

With the government allowing 100 per cent foreign direct investment in the MRO sector, analysts expect large investments to flow in. According to aviation analysts, India is expected to see at least nine new MRO facilities, including those by Airbus and the Boeing Company and a host of Indian carriers.