The recent signing of a Memorandum of Understanding (MoU) between Aerolloy Technologies Limited (ATL) and Safran Aircraft Engines represents a pivotal moment in India's quest for self-reliance in defence manufacturing.

This strategic partnership, formalised at Paris Le Bourget on June 24, 2025, marks a significant expansion from their existing collaboration on commercial LEAP engines into the critical domain of military aircraft engine components.

The partnership exemplifies how India is successfully leveraging global expertise while building indigenous capabilities to create a comprehensive Aero-Engine ecosystem that serves both current and future defence needs.

Strategic Partnership Foundation

ATL, as a wholly owned subsidiary of PTC Industries Limited, brings specialized expertise in manufacturing castings and materials for aerospace applications, particularly in titanium and superalloy components. The company has established itself as a significant player in the global aerospace supply chain, with over 30 years of experience exporting products to Europe, North America, Asia, and South America. Safran Aircraft Engines, a global leader in civil and military engine design, development, production, and maintenance, provides the technological expertise and international market access that complement ATL's manufacturing capabilities.

The partnership builds on their successful collaboration for commercial LEAP engines, where ATL became the first Indian company to supply titanium and superalloy cast components to a major aircraft engine manufacturer.

The existing commercial relationship has been instrumental in establishing trust and operational synergies between the two companies. ATL currently supplies seven titanium and superalloy cast components for CFM's LEAP-1A and LEAP-1B engines, supporting the significant presence of LEAP-powered aircraft in India with over 370 aircraft currently operating and more than 2,000 engines on order for Indian airlines. This commercial success provides a strong foundation for expanding into the more complex and strategically sensitive military aircraft engine domain.

Manufacturing Capabilities And Technological Advancement

ATL's technological capabilities have reached remarkable heights, positioning the company as a unique player in the global aerospace manufacturing landscape. The company has successfully developed advanced casting technology for Single Crystal and directly solidified blades and vanes for aero-engines, making it the only company in India and one of the few worldwide to possess this tightly controlled technology. This achievement is particularly significant as Single Crystal casting technology has been historically restricted to just 3-4 countries, representing a breakthrough in India's indigenous manufacturing capabilities.

The company's manufacturing infrastructure spans comprehensive capabilities from titanium alloy ingots and billets to castings, with the recent acquisition of a Hot Rolling Mill from the USA further enhancing its vertical integration. This addition allows ATL to produce plates and sheets from titanium alloys, creating a fully integrated titanium alloy product value chain that covers ingots, billets, bars, rods, castings, plates, and sheets. The hot rolling capability enables production of thinner titanium sheets essential for defence and aerospace applications, including aircraft wings and corrosion-resistant components for marine engineering.

PTC Industries operates state-of-the-art facilities including modern VAR (Vacuum Arc Remelting) furnaces combined with in-house hot isostatic pressing vessels capable of handling parts up to 1150mm diameter by 2500mm tall. The company's main titanium and superalloy foundry in Lucknow can produce castings ranging from a few grams to 500 kilograms per piece, supported by advanced CNC machine tools and comprehensive non-destructive testing capabilities.

Integration With India's Defence Industrial Ecosystem

The partnership aligns strategically with India's broader defence manufacturing transformation, which has seen production reach ₹1.27 lakh crore in FY 2023-24, marking a 174% increase since 2014-15. This growth reflects the success of the Make in India initiative, which has shifted India from 65-70% import dependency to achieving 65% domestic manufacturing of defence equipment. The defence industrial base now includes 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed companies, and approximately 16,000 MSMEs, creating a robust ecosystem for indigenous production.

ATL's expansion plans include significant investment in the Lucknow node of the Uttar Pradesh Defence Industrial Corridor (UPDIC), where the company is building a Strategic Materials Technology Complex on 50 acres. The UPDIC has attracted investments worth ₹30,000 crore across 170 MoUs, creating approximately 50,000 employment opportunities across six strategic nodes: Lucknow, Aligarh, Kanpur, Jhansi, Agra, and Chitrakoot. The corridor's strategic positioning leverages existing infrastructure and skilled labour availability while providing dedicated defence parks, world-class manufacturing facilities, and efficient transportation networks.

The Lucknow node's selection for ATL's expansion reflects the city's advantages in terms of connectivity and industrial infrastructure. The facility will house a full-fledged Titanium and Superalloy Mill for integrated production, enabling comprehensive manufacturing capabilities from raw materials to finished components. This vertical integration approach reduces dependency on external suppliers and enhances quality control throughout the production process.

Global Defence Manufacturing Context

India's defence sector transformation occurs within a rapidly evolving global landscape where technological independence has become increasingly important for national security. The partnership with Safran demonstrates India's strategic approach to building indigenous capabilities through selective international collaboration while maintaining technological sovereignty. This approach contrasts with traditional dependency relationships, instead creating mutual value through shared expertise and market access.

The global aerospace industry is experiencing significant digital transformation, with digitalization spending projected to grow from $33.6 billion in 2024 to $53.8 billion by 2034. India's position as a growing aerospace hub is reinforced by major international companies expanding their presence, with firms like RTX Corp planning to increase their India-based workforce to 8,000 by 2027. This expansion reflects India's emergence as a centre for aerospace engineering and manufacturing excellence.

The partnership also reflects broader geopolitical shifts where countries are diversifying their defence supplier relationships to enhance strategic autonomy. India's approach of engaging multiple international partners while building indigenous capabilities provides flexibility and reduces single-source dependencies that could create vulnerabilities in critical defence systems.

Future Prospects

The ATL-Safran partnership contributes to India's ambitious targets for defence production, which aim to reach ₹3 lakh crore by 2029 while expanding exports to ₹50,000 crore. Defence exports have already reached record levels of ₹21,083 crore in FY 2023-24, representing a 30-fold increase over the past decade and demonstrating India's growing capability to serve international markets. The partnership positions ATL to contribute to both domestic self-reliance and export growth through access to Safran's global supply chain and market networks.

PTC Industries' recent financial performance demonstrates the commercial viability of this strategic approach, with Q4FY25 results showing net profit growth of 233% year-on-year to ₹15.08 crore and EBITDA jumping 90% to ₹25.75 crore. This financial strength provides the foundation for continued investment in advanced manufacturing capabilities and expansion of the partnership's scope.

The military aircraft engine focus of the new MoU addresses a critical capability gap in India's defence manufacturing ecosystem. While India has made significant progress in aircraft manufacturing through programs like the TEJAS and upcoming AMCA fifth-generation fighter, engine technology remains a key dependency area. Indigenous engine development efforts, including the Kaveri engine program, have faced technical challenges and delays, making strategic partnerships essential for maintaining development momentum while building domestic capabilities.

Innovation And Technology Transfer

The partnership facilitates significant technology transfer that extends beyond immediate manufacturing requirements to build long-term indigenous capabilities. Safran's expertise in advanced materials, precision manufacturing, and quality systems complements ATL's growing technological base, creating opportunities for knowledge transfer that benefits India's broader aerospace ecosystem. This collaboration model demonstrates how strategic partnerships can accelerate indigenous capability development while maintaining competitive advantages for international partners.

The focus on military aircraft engine components represents a natural progression from the commercial LEAP engine collaboration, leveraging established working relationships and proven manufacturing processes. Military applications typically require higher performance standards and more stringent quality requirements, pushing technological capabilities forward and creating spill-over benefits for commercial applications.

ATL's development of Single Crystal casting technology exemplifies how strategic partnerships can accelerate indigenous innovation. This capability, essential for high-performance turbine components, represents a quantum leap in India's metallurgical manufacturing capabilities and positions the company to serve both domestic and international markets with advanced aerospace components.

The Memorandum of Understanding between Aerolloy Technologies Limited and Safran Aircraft Engines represents more than a bilateral business agreement; it symbolizes India's strategic approach to building comprehensive defence manufacturing capabilities through selective international collaboration.

By combining global expertise with local innovation, this partnership advances India's vision of a self-reliant defence ecosystem while contributing to the transformation of Uttar Pradesh into a major defence manufacturing hub. The collaboration demonstrates how strategic partnerships can accelerate indigenous capability development, create economic value, and enhance national security simultaneously, positioning India as an increasingly important player in the global aerospace and defence manufacturing landscape.

IDN