hamco - presentation

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RISK AND BUSINESS SOLUTIONS

Presentation on

AeroZone @ Hyderabad- The Aviation MRO SEZ

Hyderabad Aircraft Maintenance Company Pvt. Ltd. (HAMCO)

2

Agenda : Setting the Context

To present the concept of AeroZone to the Government of Andhra

Pradesh (GoAP)

To evaluate potential economic and social impact of proposed

AeroZone on the State of Andhra Pradesh

To seek Government approval for the proposed project

To evaluate potential opportunities of collaboration between GoAP

and HAMCO

2 AeroZone @ Hyderabad – The Concept

3 AeroZone - Focus areas and Service

4

CO

NT

EN

TS

5 Business Case for AeroZone

Hamco: Demonstrating our Capabilities 7 AeroZone : Impacts and Benefits 6

Building Blocks of AeroZone

What We Seek from Government of Andhra Pradesh 8

Global Aviation Market – Opportunities Galore 1

GLOBAL AVIATION MARKET – Opportunities Galore

5 Source: Boeing 2005 current market outlook report``

With the expected steady rise in the global

economy, the long-term growth outlook for

global aviation market is robust.

The Boeing Current Market Outlook 2005

infers that over a 20 year outlook period

increasing number of people will travel for

vacations, to meet friends and relatives and to

conduct business.

It is forecasted that the revenue passenger

kilometres would increase from 3800 Billion

Km in 2005 to 9400 Billion Km in 2024

By 2024, the world passenger air travel is

expected to grow at 4.8% CAGR (Compound

Annual Growth Rate) while the cargo air travel

is estimated to witness higher growth of 6.2%

The global commercial fleet size would

increase from 16,800 airplanes in 2004 to

35,300 airplanes in 2024.

It is estimated that around 18,500 new

airplanes (except replacements) will be

added in the global airline fleet

The Global Aviation Market – Opportunities Galore

6 Source: Boeing 2005 current market outlook report``

Shining Asia-Pacific

8,7991,7438696,6957,163425Airplane Deliveries (Number)

3.55.16.64.66.08.2North America

5.17.2—4.98.88.8Latin America

6.6—4.75.16.16.0Middle East

4.64.95.13.45.45.0Europe

6.08.86.15.46.06.3Asia–Pacific

8.28.86.05.06.36.1Africa

%/year%/year%/year%/year%/year%/yearto/from:

2005–20242005–20242005–20242005–20242005–20242005–2024Traffic Growth

North America

Latin America

Middle EastEuropeAsia–PacificAfrica

8,7991,7438696,6957,163425Airplane Deliveries (Number)

3.55.16.64.66.08.2North America

5.17.2—4.98.88.8Latin America

6.6—4.75.16.16.0Middle East

4.64.95.13.45.45.0Europe

6.08.86.15.46.06.3Asia–Pacific

8.28.86.05.06.36.1Africa

%/year%/year%/year%/year%/year%/yearto/from:

2005–20242005–20242005–20242005–20242005–20242005–2024Traffic Growth

North America

Latin America

Middle EastEuropeAsia–PacificAfrica

With increasing importance of Asia Pacific in

the global economy, the growth in passenger

and cargo traffic is estimated to grow

significantly

Supporting this growth, the region is

expected to receive the second largest

passenger airplane deliveries (7163), only

after North America by 2024

Even in the cargo plane deliveries, Asia

Pacific region is expected to receive second

highest number of aircrafts after North

America by 2024

Asia-Pacific will see single-aisle available

seat kilometers (ASKs) more than triple over

the forecast period.

It is estimated that more than 80 percent of

the world’s ASK added generated by 747

and larger airplanes will serve travel to,

from, and within the Asia-Pacific region.

ASK: Available seat-kilometers — the number of seats an airline provides multiplied

by the number of kilometers they are flown; a measure of airline capacity.

7

Challenges Leading to Opportunities

Steady growth projections for next few years in the global aviation market is expected to result in

emergence on new challenges for the airlines which in turn will lead to evolution of new business

opportunities.

Key Challenges for leading Airlines

Emerging Business

Opportunities

Increasing competition owing to the emergence of Low cost carriers leading to intense fare war

Minimise aircraft downtime to maximise revenue potential

Technological complexity of Aviation maintenance

Maintenance related regulatory compliance

Stringent safety standards

Growing shortage of trained MRO professionals

Outsourced

MRO

Services

Focus on core activity– Selling seats – Outsource non core activities to qualified services providers

Minimise capital expenditure by eliminating heavy capital investment on maintenance and repairs equipment

Focus on operational cost competitiveness

by reducing inventory holding costs for the numerous spare parts

Global Aviation MRO

Changing Dynamics

9

Fuel and pilot

salaries 30.1%

Aircraft and

Traffic Service

15.9%

In-flight service

8.3%

M aintenance

12.2%

Administrative

7.5%

Transport

Related 10.0%

/ Depreciation

Amortization

6.7%

/ Promotion

Sales 9.3%

MRO activities in an Airline business can not be

compromised and yet it is a major expense head. Globally,

several airlines do not have the requisite technical expertise

for maintenance. But it represents a major expense-head

which cant be ignored.

Industry estimates suggests that Maintenance Cost

contributes as high as 12.2% of the total cost of an

airline.

In 2004, global aviation MRO industry was estimated to

be a $36 Bn industry. However, with the rapidly rising global

fleet size, the need for MRO services is also set to change.

The industry is expected to witness steady growth of

around 5.6% in long term and is estimated to cross $ 62

Bn by 2014

With an objective to achieve convenience, expertise and

minimisation of MRO cost, airlines are increasingly

outsourcing MRO activities

Airlines are acquiring new wide-body and narrow-body

aircrafts: while this reduces the market for unscheduled

downtimes, the need for scheduled Maintenance is

increasing

Estimated growth in the Global MRO Market

Global Aviation MRO : Changing Dynamics

What do the airlines spend their money on?

36

62.2

0

10

20

30

40

50

60

70

2004 2014

10

Aviation MRO is a well established industry in the West.

However, with increasing economic significance and rising

fleet size of Asia, many organizations in China and rest of

East Asia are rapidly building up their skill-base in the

aviation maintenance field

Owing to the labor intensive nature of MRO services Asia is

emerging as an important hub for MRO. The market in Asia

is estimated to grow at a CAGR of 7.4% by 2014 and

reach approx. $ US 15.4 Bn

The share of Asia in the global MRO market is also

expected to increase from 21% in 2004 to 24.5% in 2014

Presently, a significant amount of Passenger to Freighter

conversion work is also being executed in Asia

Within Asia, China, Japan, India and Australia are emerging

as the top 4 countries in terms of airline traffic and MRO

potential

Over the past few years, China has been able to tap a

significant market share of the Asia MRO market. This

was primarily due to setting up dedicated industrial

zones for aviation related manufacturing and MRO

activities and providing several incentives to companies

operating in this space. Latin America 4.0

Middle East 2.5

Asia 15.4

Europe 17.7

North America

21.9

Africa 1.6

Latin America

1.8

Asia 7.6

Europe 10.1

North America

14.4

Middle East

1.4

Africa 0.7

MRO in Asia – Improving Significance

2004 Global Commercial MRO Market :

$ 36 Bn

2014 Projected Global Commercial MRO Market :

$ 62.2 Bn

What’s in Store for India?

The Epicenter of future Growth

12

160

360

620

0 100 200 300 400 500 600 700

2004

2009

2014

Projected Fleet Size Growth: India

Source: Aerostrategy

India: The Epicenter of Aviation MRO Growth

Extraordinary growth in airline traffic– In 2001 the number

of aircraft departures in India was 2,16,700. This has

increased to 366700 in 2005 and is expected to grow to

438700 departures in 2006

Rapidly rising fleet size – The total fleet size of all airlines

operating out of India are projected to grow rapidly. Number

of aircrafts in the country are expected to rise from 160 in

2004 to around 620 in 2014. In 2005 the fleet size of Indian

carriers was 249. A significant corresponding increase in

revenue passenger kilometres has also been recorded.

Emergence of multiple carriers – India has witnessed

entry of airlines across the service spectrum ranging from

full service carriers such as Kingfisher airlines and

Paramount Airlines to a large number of low cost carriers

such as Air Deccan, SpiceJet, Go Air, IndiGo and Premier

Airlines

With the rapid growth of the aviation sector in India, airport infrastructure, ATC requirements and concerns, pilot and engineer shortages have emerged as major areas of concern. The critical aspect of aircraft maintenance has unfortunately not received adequate focus and coverage. However, Since the establishment of HAMCO in July 2005, the key aspect of aviation maintenance is gradually getting due recognition. Hamco endeavors to address all aspects related to aircraft maintenance by providing specialised services and support development of concepts such as AeroZone

13

With a significant and sudden rise in the total fleet size in

India, the demand for MRO services has also increased

rapidly.

Long standing players such as Air India, Indian Airlines, Jet

airways etc have established their own MRO teams and have

adequate maintenance capability. However, several new

entrants in the market do-not have adequate manpower and

skills for MRO and therefore source their maintenance

requirements from abroad.

The total aviation MRO market in India is estimated at $

US 405 Mn. The market size is expected to be $ 1.06 Bn

by 2014

Market contribution of India in Asian MRO market will

also increase from 5.33% in 2004 to around 7% by 2014.

With a significantly high growth estimate of 10.2%, the

aviation MRO market in India is expected to outpace the

growth in the global as well as Asian market.

Low-cost carriers (LCC) such as SpiceJet and Air Deccan are

increasingly outsourcing their fleet MRO requirements

Presently, a lot of such work is being sourced from service

providers based in regions such as Singapore and Europe


Comparative Growth Chart – Global,

Asia and India

Global Asia India

2004 $36 Bn $7.6 Bn $405 Mn

2014 $62.2 Bn $15.4 Bn $1.06 Bn

CAGR* 5.62% 7.4% 10.2%

* CAGR - Compound Annual Growth Rate

14

Line

Maintenance

Base Maintenance Component Repair

Air India Air India Air India Air India

Indian Indian Indian Indian

Jet Airways JAECO JAECO JAECO

Sahara Sahara Engg Sahara Engg /

Malaysian Air Engg

Sahara Engg

Air Deccan EADS EADS EADS

King Fisher Indian Indian Indian

Spice Jet Hamilton Hamilton KLM Engg &

Boeing

Indigo Air Indigo Air - Rockwell Collins

Go Air Go Air - (Sahara, Jet or IA)

Paramount Paramount - GE

Currently many

Indian Low Cost

Carriers source their

MRO needs either

from larger airlines

having their own

Maintenance

facilities or from

MROs abroad.

A number of companies have firmed-up plans to enter the airline market in India. This signifies an

enormous growth potential for the MRO market. Air-One, Visa, Royal, Skylark and Yamuna Air are

the proposed airlines which plan to operate a variety of formats such as chartered carriers, regional

discounters etc.


While leasing is a popular mode for aircraft acquisition world-wide, in India many new airlines have

opted for acquisition through purchase – Acquisition through purchase puts the onus of maintenance on

the airlines themselves, the airlines would therefore need to enter into comprehensive maintenance

contracts. The following chart shows the maintenance relationships established by various airlines

15

Critical Requirements for India To Capture MRO Opportunity

Adequate domestic market

World class infrastructure in vicinity of prominent airports

Ease of business operations

Government Support and Fiscal Incentives

Avenues for reduction in operational expenses

Adequate ancillary industry base

Availability of trained and experienced manpower resources

China has successfully captured significant MRO market through addressing critical industry requirements by developing dedicated industrial Park/cluster for Aviation industry. Given its known technical capabilities and low cost trained manpower, India has tremendous potential to emerge as preferred destination for Aviation Original Equipment Manufactures (OEMs) and MROs. To capture the significantly large opportunity of aviation MRO and to attract leading international players in aviation sector, the concept of “AeroZone @ Hyderabad” has been developed.

AeroZone @ Hyderabad -

The Concept

17

AeroZone - Concept

AeroZone will be a geographic concentration/ cluster of advanced

technology enterprises which will address the maintenance, repair

and overhaul (MRO) needs of the global aviation industry”

Vision - To emerge as the benchmark center for excellence in the field Aviation Maintenance Support

and Ancillary Manufacturing by providing an enabling infrastructure and customized service support to

the global industry leaders.

AeroZone would be a ―one-stop-shop‖ for all kinds of aviation related MRO services and ancillary

manufacturing, supported by integrated infrastructure facilities such as ready to use factory sheds, office

space, world class testing facilities, training institutions, business centre and other support facilities - all

functioning at one campus.

The Aerozone would endeavor to be a hub of all regulatory bodies in aviation sector. Indian & Foreign

regulatory bodies such as DGCA, FAA (USA) and EASA (Europe) would be encouraged to set-up

offices in the AeroZone

The objective of AeroZone is to build a „critical mass‟ of leading international aviation components

suppliers and MROs by providing all the required infrastructure of a cluster at a single location.

18

AeroZone – Unique Propositions

Comprehensive Specialized Facilities and

Service

Fiscal incentives &

regulatory benefits

under SEZ scheme

Specialised Infrastructure

and common facilities for

the global MRO

Companies

Offering a broad spectrum of support

to the Growing Airline Industry

AeroZone

First of its kind of industrial cluster focused on aviation sector in South Asia.

The unique selling proposition of AeroZone is based on three core offerings:

Hassle free operating environment

Comprehensive specialized facilities and services

Preferential incentives and policy framework

19

Strategically located in India to

service the entire South East Asia

Integrated Offerings Fiscal Incentives Access to market

First of its kind special economic zone dedicated for aviation and related industry in India

AeroZone - Concept

Tenants to benefit with fiscal incentives under the SEZ scheme

Centrally located within India assisting in faster turnaround time for aircrafts

Spread over 250+ acres of

Land

Specially designed to

accommodate the domestic

and international aviation

MROs and ancillary

manufacturing facilities

Specialised services support

to tenants such as trained

manpower supply, regulatory

assistance, logistics support

Logistics support for smooth

transfer of equipments/ goods

Operational linkages with the

Centres of knowledge (leading

universities, research

organisations etc.)

World-class manufacturing,

office and commercial space

In-campus access to

regulatory bodies

20

AeroZone

Reduced

Costs

The SEZ

Advantage

Strategic

Location

Business Case for the AeroZone

Time to

market

Cluster

Advantages

Integrated Facilities with specialist MRO features

Location at Hyderabad ―a natural aviation hub‖

Operational benefits of operating out of an SEZ

Built-to-suit facilities enabling reduced business

set-up time

Market and Operational Advantages of being

located in a cluster

21

Benchmark Project : Aeroplex at China

Xiamen Aviation Industrial Zone (XAIZ), founded in 1993, is the unique civil aviation maintenance base in

mainland China. Spanning an area of 3.4 sq. km (2850 acres), XAIZ is situated in the northeasten part of

Xiamen Island, a part of Xiamen International Aviation City

The Zone is developed by Xiamen Aviation Industry Co.Ltd. (XAICO). The shareholders of XAICO are:

Xiamen State-owned Estate Investment Co., China Xiamen Corporation For International Techno-

economic Co., Xiamen Airlines, Xiamen International Airport Group Co.Ltd. , China Life Insurance

Company Xiamen Branch, Xiamen International Trade (Group) Co. Ltd., Xiamen Tourism Group

Corporation

XAIZ’s focus areas include maintenance and manufacture of aircraft components. The Industrial Zone is

divided into many functional sections.

Xiamen Aviation Industrial Zone (XAIZ), China

The Park also provides several standard factory buildings in the zone,

with the purpose to lease or sale to investors

Total investments in the zone till date is estimated to be more than

USD100 Mn.

XAICO had raised a fund of USD 200 Mn for infrastructure development

(Roads, Power Supply, water and communication) at the Zone

Leading Global MRO service providers who are opeating out of the Park

are: Boeing, GE On Wing Support Co. Ltd. Taikoo Aircraft Engineering

Co. Ltd., GE Engine Services Co. Ltd., Honeywell TAECO Aerospace

Co. Ltd., Goodrich TAECO Aeronautical Systems Co. Ltd, Hamilton

Sundstrand Qinling Aerospace Co. Ltd. , Meggitt Sensors & Controls Co.

Ltd.

AeroZone @ Hyderabad –

Focus Areas/ Services

23

AeroZone– Focus Areas / Services

In the case of Aviation Maintenance, a cluster is a boon for the consumer – the Airlines. A single location

providing comprehensive services can contribute significantly towards dropping costs and reducing aircraft

maintenance turnaround times for airlines.

The proposed AeroZone would attract companies specializing in flight components, aircraft engine and also

ancillaries. This set-up would significantly enhance the attractiveness of the AeroZone to both – the airlines as

well as the potential tenants.

Aviation Maintenance is a regulatory body monitored activity. In the Aerozone space would be provided to set-

up a DGCA office in the premises of the Aerozone. Additionally a cell would be formed to assist tenants in

securing a certified repair station licence from bodies such as FAA in the US and EASA in Europe

The proposed AeroZone would undertake 6 key activities which would comprise an entire gamut of services

to the airline industry

Ancillary Overhaul and

Repair

Component

Overhaul

and Repair

Technical Services

Engine

Overhaul

Ancillary

Design and

Development

AeroZone

Aero-University

24

Ancillary Overhaul & Repair Engine Overhaul Ancillary Design and

Development

Aircraft Engines are complex systems and the repair and overhaul of engines are routinely conducted generally by Original Equipment Manufacturers.

Ancillaries refer to aircraft components, which do not contribute to flying. Components such as seats, doors and life-rafts are included in this sector

Many aircraft components require complex design and development expertise. Such activities can be taken up at the park


Airbus A320 - CFM 56 and V2500

Boeing 737 - CFM 56

Embraer 170/190

GE CF 34

ATR 42 / 72

PW 100

GE, Pratt Whitney, Snecma, MTU, IHI Japan, Rolls Royce

Key

Activities

Potential

Tenants

•Oxygen Supply

•Doors

•Seats

•Toilet Units

•Life Limited Escape Slides & Raft

•Oxygen Equipment

•Cabin Interior channels

•Fire Extinguishers

•Fabrication and Mfg of floor panel

Air Liquide, AVOX Systems, Meggitt,

Vought, WZK Poland, HAL India,

Weber, P.L. Porter, B/E Aerospace,

Goodrich Corp, Aircruisers, Teklam,

Hexcel, Thales, Matsuhita, Rockwell

Collins

Aircraft Hardware

Design Analysis Software

Component Development Testing

OEMs and Software companies

with aircraft component design

expertise

25


Technical Services Component

Overhaul & Repair Aero-University

Critical Aircraft components

such as flight controls,

navigational aids, and landing

gear would be repaired and

overhauled in this facility

An Unique facility which would

conduct testing for aircraft

components and also assist

companies in conducting research

for developing new components

An institution that would conduct courses in Aircraft Maintenance Engineering and technical training for cabin crew

Liebherr, Hamilton Sundstrand, Crane Aerospace, Eaton, TRW Aeronautical, Honeywell, Messier Bugatti, Goodrich Corp, Hydro-Aire, Meggitt Plc, B/E Aerospace Crane Aerospace, Parker Hannifin

Potential

Tenants

HAMCO and other leading Original

Equipment manufacturers

•Air-conditioning

•Auto Flight

•Electrical Power

•Flight Controls

•Fuel Systems

•Hydraulic Power

•Ice and Rain Protection

•Landing Gear

•Navigation Aids

•Pneumatics

•Ancillary Power Unit

•Wheels and Brakes

•Structural and Sheet-metal Repair

Key

Activities

•Hydrostatic Testing and Charging

•Component Design Assistance

•Aircraft Recovery Services

•Licentiate courses in Aircraft

Maintenance Engineering

•Simulator training

•Technical training for Cabin

Crew - Water Borne Landing

HAMCO in alliance with leading

global Aviation educational

institutes

26

AeroZone – Manpower and Investment

Manpower

Investment Range

$ Mn

Component Overhaul & Repair 1635 158

Engine Overhaul & Repair 1000 200

Ancillary Overhaul & Repair 1025 58

Technical Services 25 2

Ancillary Design and Development 750 60

Aero-University` 100 50

Total 4535 528

Building Blocks of AeroZone

28

AeroZone– Building Blocks

I. Aero District

Demarcated zone for units

engaged in focus MRO and

ancillary design and development

activities

II. Aero Commerce

Demarcated zone for business

support and other commercial

infrastructure critical for tenants

III. Aero-University

Integrated campus for aviation

maintenance training and

educational programs

IV Aero Logistics Distribution and Warehousing

Infrastructure for the tenants

29

Aero District Aero District will be the demarcated zone within the

AeroZone that will provide ready to use infrastructure

facilities in the form of factory sheds to the tenants of

the Park.

The zone will house units engaged in the five key

areas as depicted in the chart.

Purpose-built factory sheds of various sizes would be

provided to companies

Plots would be earmarked for companies wishing to

build their own workshops at AeroZone

AeroZone – Building Blocks

Aero District

Ancillary

Overhaul

and

Repair

Technical

Services

Component

Overhaul

and Repair

Engine

Overhaul

and

Repair

Design &

Develop

ment

Zone

30

Aero Commerce Aero Commerce will be a cluster of ultramodern

Buildings that will cater to the office space needs of

the tenants at AeroZone

The business will have facilities as depicted in the

chart.

The Business Enclave would be constructed on a 2.5

acre plot of land in a central location in the AeroZone

The enclave would be easily accessible from all parts

of the complex

Aero Commerce

Club

House

Commerci

al Complex

Office

Complex


31

Aero-University An Integrated campus for aviation education, developed on

8 acre plot in the AeroZone

Aero-University would be set-up by Hamco in collaboration

with leading institutes such as Westwood College of

Aviation Technology Denver and National Aviation

Academy Florida

An unique industry academia partnership that would

engender a continuing source of high quality workforce for

the aviation industry

The courses would be in the fields of aircraft maintenance

and technical training for cabin crew. Courses for

Commercial Pilot’s License would not be conducted here

Specialised training Infrastructure such as

Mock Aircraft,

Simulators,

large water pool for water-borne landing training and

Workshops

Aero-University - Indicative Courses

• Licentiate courses in Aircraft Maintenance

Engineering

• Simulator training for Pilots

• Technical training for Cabin Crew Training

• Specialist short term courses such as Water

Borne Landing for cabin crew

• Anti-Hijack training

• First Aid training

• Passenger Behaviour Control Management


32

Aero Logistics

An unique feature for the AeroZone– a dedicated

logistics hub set over an area of 4 acres

The hub would maintain a large warehouse for parts

The operations would be backed by a central

purchase organization which would co-ordinate with

the tenants and ensure optimum stocking of spare

parts

The distribution arm of the company would engage in

transporting replacement components and securing

airport clearance for the components

Central Warehouse Distribution Arm

Centralized Parts

Purchase

Securing Aircraft

Clearance

Spare Parts Needs

Assessment

Transporting

Components

Stocking of Parts Doorstep Delivery

Inventory Management

Following Material

Handling Guidelines

Functions of Aero Logistics


33

AeroZone– Infrastructure and Facilities

Integrated Facilities with specialist features for the Aviation support maintenance and

manufacturing industry

Specialty

Services to be

offered by the

AeroZone

Regulatory Assistance Securing clearance of proposals for Automatic Approval

Import of Capital Goods list attestation

Country of Origin Certificate (GSP)

Filing proposals to the DGCA

Assistance in securing accredited repair station certificates

from FAA and EASA

Securing Import Export Code No. (IEC)

Clearance for job work / subcontracting

Logistical Support A central warehouse for Aircraft Parts

A logistics unit for parts transportation and securing security

clearance for parts from the Airport

Manpower Assistance A ready workforce for tenants, trained in MRO activities

An Aero-University for continuous flow of trained manpower

Other Services Facilities Management

34

AeroZone– Proposed Land Usage Pattern

Total Area (in Acres)

AERO DISTRICT 245.0

Component Overhaul 125.0

Ancillary Overhaul 50.0

Engine Overhaul 35.0

Technical Services 10.0

Design and Development Zone 25.0

AERO UNIVERSITY 15.0

AERO LOGISTICS 5.0

AERO COMMERCE 5.0

Total 270

AeroZone– Impact and Benefits

36

Estimated Area 250 Acres (Phased Development)

Potential Companies

in the AeroZone GE, Honeywell, Hamilton Sundstrand, Goodrich Corporation, Liebherr

Estimated Space

Development

(Over a period of 3

years)

Processing Zone - around 6 lakh sqm and

(including processing and training facilities)

Estimated Job

Creation

Estimated Direct Jobs Creation - Around 4,500

Estimated Indirect jobs Creation- Around 11,250

Potential Investment Approximately $ 520 Mn

Magnitude of the AeroZone

37

Economic Impact

Expected FDI – Over USD 500 Mn

Significant Foreign Exchange Saving

Potential to develop a peripheral cluster

of SMEs engaged in activities such as

• Supplying contract labour

• Mechanical Fabrication

• Facilities Maintenance

• Providing technical supplies –

Metalworking Fluids, Adhesives,

Cleaning Agents etc

Social Impact

Potential to create more than 15,000

jobs – Over 11,000 indirect jobs and

over 4,000 direct jobs

Would play a role in upgrading the

skill-sets across all strata of the

participating workforce

Potential to upgrade the social

infrastructure in the immediate region Spin-off Benefits

Enhance the technology capital of the

region

Act as an additional enabler for airline

operators to identify Hyderabad as their

operational hub

Spawn multiple other industry groups

such as mechanical engineering,

electronics and software development

First Mover Advantage for A.P.

Aero-Zone will make Hyderabad the Aviation

capital of India

Aerozone can make significant contributions

to the Andhra economy

There is a need to act fast. Companies are

likely to consider only a single location in

India for operations

AeroZone– Impact & Benefits

“GoAP – Hamco” Best Fit

39

HAMCO has been established on 7th July 2005 by a team of aviation professionals

after over a year of planning

Company is set-up and managed by set of Aviation Professionals with decades of

Aviation experience

Over 20 A&C and Av Licensed Aircraft Maintenance Engineers, holding current &

valid DGCA Licenses working with Hamco

Company will be starting to provide Line Maintenance to private airlines at

Begumpet airport shortly

Negotiations in advanced stage with Airlines for supporting their Line Maintenance

activities at Hyderabad

Evaluating opportunities to offer Heavy Maintenance services to airlines at

Hyderabad Airport.

Hamco - Introduction

40

1. Conceptualization, Planning and financing of AeroZone

2. Managing the development of AeroZone and technical evaluation of all

potential tenants

3. Marketing AeroZone across the world

4. Providing specialised services such as regulatory assistance, trained

manpower support, logistics & distribution services etc to the tenants

5. Establishing MRO units in alliance with leading companies in the

AeroZone

6. Develop India‟s first Aero-University at AeroZone in alliance with

leading aviation education institutes in the world

7. Developing a highly trained pool of workforce

8. Facilities management at the AeroZone

Role of Hamco in AeroZone

41

What we seek

Support of Government of Andhra Pradesh for the AeroZone initiative

Evaluate opportunities of State Government Participation in the AeroZone

Project

Allotment of around 250 acres of land in the vicinity of upcoming

Shamshabad Airport in Hyderabad

Government Support to Procure Necessary Approvals from the

Government of India for Obtaining Special Economic Zone Status for

AeroZone

Additional financial incentives to make the proposed AeroZone attractive

to leading global players engaged in Aviation related manufacturing and

services

RISK AND BUSINESS SOLUTIONS

THANK YOU

hamco - presentation

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