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India emerges as a hub for EADS unit Cassidian
Andleeb Shadman, 39, heads the defence engineering facility at Cassidian in India the first fully owned defence-oriented engineering centre by any foreign company in the country, employing as many as 60 engineers, most of them Indians.
Kanpur-born Shadman whose name translates into 'happy bulbul' says he was aware of the significance of this "pioneering" project for his German employer from the start. In fact, it wasn't an easy decision for him to join Cassidian, the defence and security arm of Franco-German defence and aerospace giant EADS. He was previously employed with US aerospace major HoneywellBSE -1.19 % in Phoenix, Arizona, and was living the dream life of a small-town boy: an American job, a beautiful wife and two children a boy and a girl.
In 2009 when Cassidian hired him, the company was already looking at "doing more" to "understand and connect" with its new customers. It had realised the mistake of focusing too much on Europe where the defence market had begun to shrink thanks to cuts in defence budgets following the global economic meltdown. Henrik Heidenkamp, a defence expert with London-headquartered Royal United Services Institute, offers an explanation: to do well, companies have to be seen less as an external provider of equipment and services and more as a reliable domestic partner that not only provides a military kit but also offers domestic economic and technological value.
Acting First, Fast
What was a personal challenge for Shadman who flew back to India happily was a new business opportunity for Cassidian. Shadman had to give up a "much-settled, cushy" job to help build things from scratch, which included hiring well-trained engineers and setting up the facility. Stefan Zoller, then CEO of Cassidian, had thought a lot about it before he set up the Bangalore facility in 2011. The company also wanted to make 50% of its revenues outside of Europe by 2016 (compared with less than 30% now). Its resolve would only strengthen later when it lost a deal to supply 126 warplanes to India last year.
By then Cassidian had in place what no other foreign player had on Indian soil: a 100% owned defence engineering team that makes products for the local market. In the process, Shadman's boss Peter Gutsmiedl was promoted from being CEO of Cassidian's India arm to its first head of Asia-Pacific to push for more business in the region and Shadman and team came up with new home-grown products.
In fact, such moves reflect Cassidian's larger game plan: to make the country a hub of its operations in the region, a fastgrowing market, comprising besides India the world's largest importer of defence goods high defence spenders such as Singapore, Malaysia, Indonesia, Australia and South Korea. The $10-bn Indian homeland security industry is expected to grow to $16 billion by 2016 and spend on local airport security is expected to touch $3.2 billion by 2016, growing at a cumulative average rate of 5%.
Products to Flaunt
Gutsmiedl is a meticulous conversationalist, giving attention to detail. He probably loves Indian defence minister AK Antony's talk of indigenisation and the need for enlisting the private sector in this effort which the minister sees as an antidote to rising corruption in defence deals that is hurting the country's arms procurement and defence modernisation. Sure, private-sector participation has produced good results on the indigenisation front in Indian defence.
The Pinaka multi-barrel rocket launchers are manufactured by Tata PowerBSE 1.17 % and Larsen & Toubro. L&T was also involved in developing a hull for a nuclear submarine for the India Navy and Tata Power in the modernisation of air field infrastructure for IAF. Reliance IndustriesBSE 0.54 % has set up an aerospace and homeland security division by roping in former Boeing veteran Vivek Lall, who is looking at sealing JVs with foreign firms and securing local contracts.
India emerges as a hub for EADS unit Cassidian - The Economic Times
Andleeb Shadman, 39, heads the defence engineering facility at Cassidian in India the first fully owned defence-oriented engineering centre by any foreign company in the country, employing as many as 60 engineers, most of them Indians.
Kanpur-born Shadman whose name translates into 'happy bulbul' says he was aware of the significance of this "pioneering" project for his German employer from the start. In fact, it wasn't an easy decision for him to join Cassidian, the defence and security arm of Franco-German defence and aerospace giant EADS. He was previously employed with US aerospace major HoneywellBSE -1.19 % in Phoenix, Arizona, and was living the dream life of a small-town boy: an American job, a beautiful wife and two children a boy and a girl.
In 2009 when Cassidian hired him, the company was already looking at "doing more" to "understand and connect" with its new customers. It had realised the mistake of focusing too much on Europe where the defence market had begun to shrink thanks to cuts in defence budgets following the global economic meltdown. Henrik Heidenkamp, a defence expert with London-headquartered Royal United Services Institute, offers an explanation: to do well, companies have to be seen less as an external provider of equipment and services and more as a reliable domestic partner that not only provides a military kit but also offers domestic economic and technological value.
Acting First, Fast
What was a personal challenge for Shadman who flew back to India happily was a new business opportunity for Cassidian. Shadman had to give up a "much-settled, cushy" job to help build things from scratch, which included hiring well-trained engineers and setting up the facility. Stefan Zoller, then CEO of Cassidian, had thought a lot about it before he set up the Bangalore facility in 2011. The company also wanted to make 50% of its revenues outside of Europe by 2016 (compared with less than 30% now). Its resolve would only strengthen later when it lost a deal to supply 126 warplanes to India last year.
By then Cassidian had in place what no other foreign player had on Indian soil: a 100% owned defence engineering team that makes products for the local market. In the process, Shadman's boss Peter Gutsmiedl was promoted from being CEO of Cassidian's India arm to its first head of Asia-Pacific to push for more business in the region and Shadman and team came up with new home-grown products.
In fact, such moves reflect Cassidian's larger game plan: to make the country a hub of its operations in the region, a fastgrowing market, comprising besides India the world's largest importer of defence goods high defence spenders such as Singapore, Malaysia, Indonesia, Australia and South Korea. The $10-bn Indian homeland security industry is expected to grow to $16 billion by 2016 and spend on local airport security is expected to touch $3.2 billion by 2016, growing at a cumulative average rate of 5%.
Products to Flaunt
Gutsmiedl is a meticulous conversationalist, giving attention to detail. He probably loves Indian defence minister AK Antony's talk of indigenisation and the need for enlisting the private sector in this effort which the minister sees as an antidote to rising corruption in defence deals that is hurting the country's arms procurement and defence modernisation. Sure, private-sector participation has produced good results on the indigenisation front in Indian defence.
The Pinaka multi-barrel rocket launchers are manufactured by Tata PowerBSE 1.17 % and Larsen & Toubro. L&T was also involved in developing a hull for a nuclear submarine for the India Navy and Tata Power in the modernisation of air field infrastructure for IAF. Reliance IndustriesBSE 0.54 % has set up an aerospace and homeland security division by roping in former Boeing veteran Vivek Lall, who is looking at sealing JVs with foreign firms and securing local contracts.
India emerges as a hub for EADS unit Cassidian - The Economic Times
