Maintenance, Repair and Overhaul
(MRO)

Maintenance, Repair and Overhaul (MRO) include all actions which have the objective of retaining or restoring an item in or to a state in which it can perform its required mission. Defence platforms/systems are subjected to periodic maintenance throughout its entire service life. Rather one third to half of the total capability of key asset classes is out of action for maintenance at any time undertaken in-house or outsourced or combination of both. The infrastructure/facilities required for carrying out overhaul depends on platforms and type of repair to be undertaken. Broadly the main requirement is of the following main facilities:-

  • Plant, machinery and requisite civil infrastructure.
  • Standard and non standard test equipment.
  • Tools including special maintenance tools.
  • Spares including assemblies/ sub assemblies.
  • Trained manpower.
  • Technical literature including process documents.

Military Aircraft MRO Industry

MRO is a multi-billion dollar industry growing at a robust rate year-on-year. Amongst all the platforms, it is the Aero platforms MRO that accounts for the largest share as it is undertaken both in-house and outsourced too due to huge requirements. Some of the global key players and prominent vendors in the MRO market are BAE Systems, Boeing, Airbus, General Dynamics, Lockheed Martin, Huntington Ingalls Industries, Northrop Grumman, Raytheon, Rockwell Collins, Saab, URS Corporation, and Elbit Systems, etc.

MRO accounts for around 8-10 percent of the total defence budget of some major countries and as much as 70 percent of all aircraft related cost. Over the extended life of an aircraft, the sustainment, repair & overhaul, including fuel, represent approximately 60-80 percent of the entire life cycle cost. The military aviation MRO market sub segmented in categories of platforms and technologies is depicted in diagram below.

Indian Defence Aero Platform MRO

The shelf life/life cycle of a typical aircraft/helicopter spans about 25-30 years. Considering the age of large sections of the Indian aerospace fleet with more than 50% of the fleet is above 20 years of age, the IAF has to certainly replace these with new procurements in the next 10-15 years. Given Figure depicts the current and desired vintage spread of aerospace platforms. To overcome the gaps in the desired and existing force levels, the favourable procurements trend for aero platforms is likely to continue for the next 15-20 years.

The Indian Air Force (IAF) have large inventory of Aircrafts, instrumentation systems and weaponry procured from various countries and periodic maintenance is required to keep them operational. Over the years most of the low cost / low tech items have been indigenized and thus as of now the dependence on foreign source is only relating to major sub systems only. Over 60 percent of IAF maintenance requirements are from indigenous sources. About 6.5 percent of the values of total maintenance requirements are being supplied by the industry directly to the IAF.

The budget allocation earmarked towards the aircrafts/helicopters for the Indian Air Force has been on an upward surge since last five years and will be witnessing substantial growth in coming years owing to the present depleting and aging fleet.

Considering the increasing defence spending on MRO every year, the total estimated market size of Indian MRO Market in the next 12 years from 2015-2027 is cumulatively estimated to be around Rs. 2,00,000 Crores.

Civil Aircraft MRO

Incidentally, the civil aircraft MRO industry of India is much more mature than the Indian military MRO market. At present, the civil market MRO is estimated to be Rs. 8000 Crores and is anticipated to grow to over Rs. 20000 Crores by 2025 increasing at a CAGR of over 10 percent. Refer Fig.

The manufacturers, nowadays, are offering serviceability (sometimes 70-80 percent) along with its purchase enabling it to be operational at all times. India is on its path of engaging private sector for not only manufacturing, but also MRO capabilities and training in the area of defence. This trend is only the beginning of a new chapter in the history of Indian military aviation. With the increase in the number of civil and military aircrafts, more and more global MRO companies are planning to offer engineering services by forming joint ventures with Indian firms. To meet the demand in advanced services, several domestic and overseas aviation players are entering MRO industry even with JV and partnership with Indian Companies.

In the modern operational environment there is an inevitable need to keep war fighting equipment and systems readily available especially for a country like India which cannot splurge into costly procurements. Given the vast expanse of the theatre of operations and varied terrain, this indeed seems to be challenging. To overcome this there is a need to evolve a strategy to integrate the multi-dimensional industrial base and derive a service-oriented solution aiming at reducing repair cycle time, inventory overhang and repair costs. This would ensure low lifecycle sustainment costs without compromising on a high mission reliability of equipment and systems.

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