Boeing expands India footprint with 36,000-square-feet hub in UP - Broadsword by Ajai Shukla - Strategy. Economics. Defence.

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Monday 15 January 2024

Boeing expands India footprint with 36,000-square-feet hub in UP

Boeing's India head, Salil Gupta, inaugurating the Boeing India Distribution Centre -- a spare parts warehouse that will help maintain higher fleet utilization

By Ajai Shukla

16th January 2024 

Countries across the world have grounded their Boeing 737-9 MAX aircraft for safety inspections after an incident last week in which an aircraft of that model lost a plug type passenger door in mid-flight. 


However, an upbeat Boeing announced on Sunday the inauguration of the Boeing India Distribution Centre – a 36,000-square-foot parts warehouse that the company says will support regional aviation customers in maximizing fleet utilization. 


The new India location is one of eight distribution centres around the world that holds and ships spare parts specifically for Boeing’s commercial customers, stated a company release.


“The Boeing India Distribution Centre illustrates Boeing’s commitment to supporting the growth of this market, aligned with the government’s Aatmanirbhar Bharat vision. This centre will support the emergent needs of spare parts for Boeing aircraft in India, reducing lead times, improving availability, and supporting the MRO (maintenance, repair and overhaul) industry here,” said Salil Gupte, who heads Boeing India.


Boeing announced its investment in the distribution centre last February, during Aero India 2023. The company says the first parts were shipped to customers in December 2023.


The centre is positioned along India’s Eastern Freight Corridor, with proximity to both Delhi and the upcoming Jewar airport. The warehouse is operated in collaboration with third-party logistics provider DB Schenker.


“We’re excited to collaborate with Boeing on constructing an advanced aviation-focused facility in India. The complexities of warehousing and logistics, combined with Boeing’s distinctive needs, provided us with a unique opportunity to build an innovative setup that meets the distinct spares support requirements of India’s growing aviation industry,” said Kinjal Pande, who heads DB Schenker’s operations in the Indian subcontinent.


The new distribution centre is Boeing’s most recent development in India, following a series of substantial investments and agreements aimed at bolstering the growth of India’s civil aviation industry. 


These initiatives encompass a partnership with GMR Aero Technic to establish a Boeing Converted Freighter line in Hyderabad and the establishment of a Global Support Centre in Gurgaon. 


Additionally, Boeing has committed a $100 million investment in infrastructure and pilot training programs to support India’s growing demand for pilots in the coming two decades.


Boeing has a major presence in India with more than 300 local companies. It has a joint venture to manufacture fuselages for Apache helicopters and vertical fin structures for the 737 family of airliners. 


“Annual sourcing from India stands at over $1 billion. Boeing currently employs over 6,000 people in India, and more than 13,000 people work with its supply chain partners.

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