ORBIT by Godrej

ISSUE 2 | 2022

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Focus MoD promotes indigenization through technology demonstration fund. Market Insight MoD announces indigenous projects. Exports News Inspite of challenges, exports team makes the best of the opportunities on the way. Inside Aerospace Our journey towards digitization. Industry Achievements Making us proud and Godrej Aerospace shine!

GOVERNMENT OF INDIA SPEEDING UP ATMANIRBHAR INITIATIVE S.M. VAIDYA

Executive Vice President & Business Head, Godrej Aerospace

am pleased to inform you all that we have met and exceeded our business target and the performance has been very good this year. Along with targets we have also achieved our other goals such as securing order and its execution in BTS, LRU big presence as reference order from HAL, entry into aircraft engine critical technologies and assemblies, Rubber and Composites (R&C) for missiles and many more. IMMF is still meeting expectations set by most of the directors given the risks and long-term developmental phase in such projects.

The state-of-the-art machinery which will differentiate us from our competitors and give us a unique advantage. Space business is also profitable and there are positive signs from Civil Aviation as well. Govt. of India is further speeding up on implementation of Atmanirbhar and opening of space for private industries. Some of the assets we acquired during this year are the state-of-the-art machinery which will differentiate us from our

competitors and give us a unique advantage. This will also reduce our dependance on overseas OEMs and monopoly of some of the OEMs which is difficult to acquire and maintain. Confidence built by Indian OEM needs to be acknowledged and applauded. Maturity of our planning and Quality systems as evaluated by our customers is improving. Thus, this financial year, will give a boost to further strategize and to explore market which is thrown open to compete. IMMF is now almost like a mini division with turnover in triple digit and Space following as well. I am sure in next two years Exports will also catch up and will enter in to triple digit turn over. We need to look into future of R&C and Export machining in Built To Spec. Learnings from Business excellence model, inputs from Takaosan, our journey in TPM, TOC, Quality maturity and zero-defect journey, internal training and focus on engineering and R&D will sharpen our thinking further to be OEM of Aerospace & Defence (A&D) products. Setting up supply chain and network of representatives across the important territories of the A&D domain will further strengthen and this will lead

us to Global OEM status. Our journey on energy conservation, preservation of environment and strengthening of safety systems will direct us to have a sustainable growth. All the parameters indicate higher level of engagement and teamwork across, operators, front line supervisors, managers, project and process owners, quality and other support departments with LOB heads, Union, Corporate departments, Customers and Suppliers. As we have deliberated in our SBP exercise, we shall restructure our team to give more focus on the areas that we have identified product/ process wise and will control our fixed costs. On one side we need to invest into some critical test facilities and at the same time we need to replace some of the ageing assets in manufacturing. We also need to invest in simulation software that will reduce our efforts in proving components and selecting the best parameters for all operations. To do all these investments parallelly, we must follow strict discipline in financial accounting, reduce our inventories, reduce our cycle time, and sweat all our assets to maximum. SPD, QC, QA, Purchase shall look for revenue generation from the capabilities we have acquired and get the necessary certifications. For any organization or for a division, succession planning is an important step and GA is now in such transition. I am happy to report that it is going as planned. Mr. Maneck Behramkamdin comes from engineering and mass production background. This will help us to be cost effective especially when MoD is focused on time bound completion of projects and increasing the requirements, same is true with

global business. Finally, we need to make a good plan for our expansion at Khalapur that has given us opportunity to create an infrastructure for next generation, where we can implement all the latest technologies, IoT, automation, digitization, manufacturing concepts and future generation products and processes. Every single activity at Khalapur shall be well planned after simulating various scenarios of future products. If we can lay our process in single piece flow, flexible and accommodative in modular way such that the changes will be easy to absorb, and various needs can be met easily. Deskilling and Multi skilling will be the need and hence we should focus on the root cause, that will lead us to good CAPA and then we will become a true Aerospace manufacturing company with PFMEA as our core strength. I am sure that in next 3 years, we will be able to wipe out all our accumulated losses and make this division a profitable business. I appreciate contribution and untiring efforts by all during 2021-22. I further thank Customers/Suppliers for working with us and thank our Chairman and Directors for guiding us well and giving us support, and at times challenging us for some of our proposals.

HIGHLIGHT 2022

MoD PROMOTES INDIGENIZATION THROUGH TECHNOLOGY DEMONSTRATION FUND

Godrej Aerospace has entered into two TDF projects namely Nose Wheel Steering Manifold (NWSM) & Engine Driven Hydraulic Pump (EDHP).

ANAND SARDA

Head- Defence LOB

n today’s geo-political situation, every superpower is trying to safeguard its economy for its future needs of fuel, technology & food. To maintain the dominance in the world economy every country wants to acquire strategic & tactical weapon systems to create virtual dominance. Armed forces require all the latest equipment which can be used in different terrain & environmental, geo-politically restricted conditions. Only DRDO labs & PSU`s cannot fulfil the requirements, imports is costly and dependency remains. With the new Defence Procurement Policy (DPP), first preference is given to Indian

Industry to develop the requirement of armed forces. DRDO/ PSU support such projects. To nurture this concept, Indigenization is promoted through Technology demonstration fund (TDF)/ Make1/ Make2 concepts by Ministry of Defence (MoD). NWSM is a part of hydraulic system on Light Combat Aircraft (LCA) which controls the steering of aircraft just after landing and safety critical. It houses 6 different valves which converts pilot signal into aircraft steering. Electro Hydraulic Servo Valve (EHSV) is one of the most critical

Electro Hydraulic Servo Valve (EHSV) is one of the most critical valves which will be first time developed by any Indian Industry.

valves which will be first time developed by any Indian Industry. RCI is the only DRDO LAB who has capability to produce such valves in limited numbers in India. The other critical small valves include Bypass valve, Solenoid valve, Compensator, Check valve and Pressure reducing valve. Being important module of LCA, the weight limitation is just 3 kg and size envelope available is 130*130*80mm. All this requires manufacturing miniature precision parts with submicron accuracy. To withstand different environmental conditions like temperature of -54 0C to +135 0C, rain, dust, gun powder environment, vibrations, shocks, bumps, low atmosphere pressure at high altitude, 10 Million+ life cycles, we need special material & its heat treatment & surface coatings. NWSM should be able to handle different failure conditions like rough landing terrain one side tyre burst. For testing such precise parts and assembly, we need to develop special test rigs and equipment under clean environment. Looking at our all-round capabilities and skill in manufacturing precision sub-assemblies we have been chosen by MOD. Our engineering team is closely working with our design partner M/s Zeus Numerix to complete this design and launch for manufacturing shortly. I am sure that we will demonstrate and adhere to Aerospace culture of discipline in maintaining timelines, good housekeeping and other best practices while producing such assemblies.

EDHP is the secondary pump which substantiate hydraulic pressure in the aircraft hydraulic system in case the main hydraulic pump is not giving required pressure. It is driven by the engine shaft which will rotate a swash plate tilted in angle so that the pistons will pressurize the oil. Barrell, pistons swash plate, PRV , housing, coupler shaft are precision functional parts. Test rigs and testing will be real challenge. These are really the products with technological challenges and will take us to next level of manufacturing.

Market Insight

MoD ANNOUNCES INDIGENOUS PROJECTS 25% of India’s defence R&D budget will be reserved for private industry and start-ups

assenger traffic is bouncing back due to strong economic recovery worldwide. Two years since the global COVID-19 pandemic, the aviation industry is looking to in-built measures to sustain and fight renewed waves of infection. PAURUSH BHESANIA There are going to be some long-term Marketing Head impacts such as less travel for business especially in the growing digital age. However, in the long term the recovery is expected to be less impactful than during the global financial crisis. Single aisle carriers are leading recovery with domestic travel back to normal in almost all countries, twin aisle and longhaul flights recovery is still sluggish. As per reports from Airbus and Boeing, a full recovery of air traffic is expected between 2023 and 2025 to pre-Covid levels. The impact on Godrej Aerospace is also similar. We are seeing positive recovery on our products which we supply on single aisle. We expect further improvement of schedules on these products between 15 to 25% during the year. However, on the twin-aisle or wide body, while there is marginal improvement in schedules, further improvements are slow moving also due to high inventory levels with customers. 06

On the domestic front, the Atmanirbhar Bharat initiative continues to get stronger with large scale opportunities being provided for private industry. In the budget presented by the government for 2022-23, 68% of the capital outlay for defence will be earmarked for procurement from Indian industry. Further, 25% of India’s defence R&D budget will be reserved for Private industry and Start-Ups. Also, 18 projects under various schemes for indigenous production were recently announced by Ministry of Defence. These projects involve design and development of equipment, systems, major platforms, or upgrades which the industry can take up under Make – I category of DAP2020. The quarter also saw the successful launch of Indian Earth Observation Satellite (EOS-04) onboard the PSLV-C52 along with 2 co-passenger satellites by Indian Space Research Organization. Godrej is proud to have participated in the manufacturing of Vikas Liquid Propulsion Engine for this PSLV. The important bi-annual event of “DefExpo2022”, planned in March 2022, was postponed due to the logistical challenges faced by participants due to the Russia-Ukraine war.

Exports News

ACHIEVEMENT OF EXPORTS IN 2021-22

Inspite of challenges, exports team makes the best of the opportunities on the way

material cost, other manufacturing expenses & controlling fixed cost. We need to focus on productivity improvement & cycle time reduction, low cost automations, Digitalization, IOT implementation & maximize participation in Suyuktis at all levels. Our some of the achievements for the year:

he financial year 2021-22 was a very challenging due to COVID pandemic. The customers demand had not picked up as expected due to slowdown in Aviation industry, VINOD B. BHOSLE also the demand was very fluctuating Head- Export Fabrication making it more difficult to pre-plan and LOB & SPD execute on shop floor. Steel prices had shoot up almost double. The supply chain had disrupted due to Russia Ukraine war. Importing stainless steel raw material with government license is always a challenge. In spite of above challenges, our Export team has made most out of the opportunities came in the way. We achieved a Net Business Volume (NBV) of 32.58 Cr against ABP target of 29.64 Cr. But our expenses are still a challenge & need to focus on reducing direct as well as indirect

100000th (one lakh) part 1 Dispatching to Rolls Royce supply chain Incora. Adding total 101 types of brackets in 2 our scope from GE Aerospace. Laboratory qualification as per S-400 3 GE requirements. new customer PARKER in 4 Adding Brackets commodity for which first

six representative Brackets are under development. Starting new commodity of Tubing where we will be developing 546 types of tubes for Israel Aerospace Industry in coming year.

Our quality rating was always good. We had also successfully developed inhouse 123 types of tubes bending for Brahmos, eliminating sub-contracting. Developed 5 out of 6 types of aluminum ducting components for Honeywell. The thin 0.7mm thick titanium complex fabricated Drain Mast developed for Rolls Royce with 2 inch diameter pipe bending inhouse. We had successful AS9100 and NADCAP re-certification audits for various special processes throughout the year.

Inside Aerospace

OUR JOURNEY TOWARDS DIGITIZATION Strengthening IT systems to handle growth in business with digitized business processes

NARENDRA PATWARDHAN

Head, Business Process & Engineering

riggered by the growth in recent years, Team Aerospace undertook a project in Mar-2021, to institutionalize digitization in the business processes. A special taskforce was formed under the leadership of Mr. Narendra Patwardhan, to make Infor ERP as the central system reflecting physical reality in real-time. The Infor Users across Division participated whole-heartedly in the campaign. Four areas were shortlisted for strengthening: l Hours booking.. l Production order closures. l Sub-contracting rejection handling. l Work Centre Rates normalization with accurate allocation of indirect costs. The respective CFT’s worked on each of these areas. Seniors (Mr. Kaustubh Shukla, Mr. S M Vaidya) were consulted, and SOP’s were evolved for the above areas. Mr. Vivek Kamble, Ms. Karuna Gawane, Mr. Lalit Patil from

BPR Team with the help of GITL, set up various dashboards & SOPs, and exercised Ticket Resolution rigor to clean up the system of outdated data, to prevent any anomalies in reporting. All the operating level personnel, especially from Planning function like Mr. Manoj Sharma, Mr. Ashwini Singh, Ms. Swapnali Panchal, Mr. PY Joshi and Mr. Pradeep Mali contributed a lot, with full support from LOB Heads & Finance, to make it a success. At the end of FY22, team feels confident about the digitized way of working thus also ensuring financial integrity of the Division’s accounting system without any scope for manual errors. This was an excellent example proving that we can achieve things if we are determined to work in a disciplined way under able guidance from senior leadership. We congratulate Team Aerospace for all the efforts that proved worth the while!

Industry Achievments

HALL OF FAME

Making us proud and Godrej Aerospace shine!

SPACE LOB WINS PLATINUM AWARD AT 14TH CII NATIONAL COMPETITIVENESS, CLUSTER SUMMIT, 2021. Team won Platinum award in “14th CII National Competitiveness & Cluster Summit 2021” organised on 25th & 26th November 2021 by CII. KAIZEN THEME: To reduce lead time of critical chain in injector head assembly.

MACHINE SHOP TEAM OF SPACE LOB WINS BEST CONSISTENCY AWARD AT 17TH CII KIAZEN COMPETITION. Machine shop team of Space LOB won Best Consistency award at 17th CII Kaizen competition. KAIZEN THEME: To make program without tracer or LVDT for 3.45mm to 4.27mm channel depth.

Mr. Sachin Udugade wins award at National Skill Competition “Best of the Best Welders”. Indian Institute of Welding had organised the competition on 11th -12th January 2022 at Fronius India Pune. Mr. Sachin Udugade, Welder of Exports Fabrication LOB won Runner-up Prize at National Skill Competition for Best of the Best Welders 2021 held at Pune.

Mr. Sandeep Vishwakarma wins award at International Welding Skills Competition 2021. Indian Institute of Welding had organized “Arc Cup International Welding Skills Competition 2021” on 4th December 2021 at Fronius India Pune. Mr. Sandeep Vishwakarma bagged 2nd prize in Gas Tungsten Arc Welding Category 141/GTAW.

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