AIR TRANSPORT AND AIRPORTS
India's avionics suppliers move up the value chain
Bengaluru firms that began with build-to-print now sell designed subsystems — a different business with a different margin. Check the qualification history.
Aerospace Garage desk
A cluster of Bengaluru suppliers that entered aerospace on build-to-print packages are now selling designed subsystems with their own part numbers. The margin profile is materially better, and so is the switching cost for the customer.
The caveat for anyone evaluating them is qualification history. Design authority requires a certification track record that build-to-print work does not generate, and only a handful of these firms have carried a subsystem through a full qualification campaign as the responsible party.
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