Safran Expands Aviation Facilities in India with Major New Investments

Safran Expands Strategic Footprint in India with New Civil and Military Aviation Facilities

On November 26, 2025, the aerospace landscape in India witnessed a significant transformation as Safran, the French multinational aerospace and defense corporation, inaugurated major new facilities in Hyderabad. This expansion marks a decisive step in the company’s long-term strategy to deepen its industrial presence in the region. The events included the inauguration of a massive MRO center for civil engines and the groundbreaking of a dedicated facility for military engine maintenance. These developments underscore a robust alignment with the Indian government’s “Make in India” initiative, aiming to bolster local capabilities in high-technology sectors.

The strategic move involves substantial financial commitment, with investments totaling approximately €240 million across the new projects. By establishing these facilities, Safran is not only enhancing its service delivery to Indian airlines carriers and the Indian Air Force (IAF) but is also positioning India as a critical node in its global supply chain. The initiatives are designed to address the growing demand for aviation services in one of the world’s fastest-growing aviation markets, where domestic carriers have over 1,500 aircraft on order.

Beyond physical infrastructure, the expansion includes significant partnerships intended to transfer technology and foster local manufacturing. A notable highlight is the collaboration with Bharat Electronics Limited (BEL) to produce advanced defense systems locally. These simultaneous developments in civil and defense sectors reflect a comprehensive approach to market penetration, aiming to triple Safran’s revenue in India to over €3 billion by 2030 while significantly increasing local sourcing.

World’s Largest LEAP Engine MRO Center

The centerpiece of this expansion is the inauguration of the Maintenance, Repair, and Overhaul (MRO) center dedicated to the LEAP engine. Located in the GMR Aerospace and Industrial Park in Hyderabad, this facility represents an investment of €200 million (approximately ₹1,300 crore). It is distinguished as the largest MRO center for CFM International LEAP engines globally and the first such facility established by a global original equipment manufacturer (OEM) within India. The center is designed to service LEAP-1A and LEAP-1B engines, which power the Airbus A320neo and Boeing 737 MAX fleets operated by various Indian airlines.

Operational efficiency and capacity are central to the facility’s design. The center is projected to handle 300 engine shop visits annually once it reaches full operational status in 2026. Initially starting with a workforce of 250, the facility plans to scale up its employment to 1,100 highly skilled technicians at full capacity. This large-scale recruitment and training drive is expected to contribute significantly to the local skill ecosystem, creating a pool of specialized aviation maintenance professionals in the region.

The establishment of this facility addresses a critical economic inefficiency in the Indian aviation sector. Currently, approximately 85-90% of MRO work for Indian carriers is outsourced to foreign facilities, leading to substantial foreign exchange outflows. By localizing these services, the new center will aid Indian airlines in reducing turnaround times and operational costs. Civil Aviation Minister K. Rammohan Naidu noted that domestic MRO activities could potentially save the industry up to $15 billion in foreign exchange in the coming years, highlighting the macroeconomic impact of this project.

“I want to thank Prime Minister Narendra Modi and the Indian Government for their support and trust… We’re proud to support the rapid growth of India’s civil and defense aerospace markets and actively contribute to the country’s Make in India policy and strategic autonomy.”, Olivier Andriès, CEO of Safran.

Strengthening Defense Autonomy: M88 Engines and the “Hammer” JV

Parallel to its civil aviation efforts, Safran has broken ground on a new MRO shop dedicated to the M88 engine, which powers the Dassault Rafale fighter jets. Located adjacent to the LEAP facility in Hyderabad, this project involves an investment of €40 million. Notably, this will be the first M88 MRO shop established outside of France. The facility is designed to process 600 engine modules annually and will employ up to 150 technicians. Its primary mandate is to support the Indian Air Force (IAF) fleet, ensuring higher availability and operational readiness for the Rafale jets, while also possessing the capacity to serve other export customers.

In a move to deepen defense localization, Safran also signed a Joint Venture (JV) and Cooperation Agreement with the Indian state-owned Bharat Electronics Limited (BEL). This 50:50 partnership focuses on the manufacturing of the “Hammer” (Highly Agile Modular Munition Extended Range) air-to-surface weapon. The Hammer is a precision-guided munition with a range of up to 70 kilometers. The joint venture aims to manufacture this advanced weaponry locally, thereby reducing reliance on imports and enhancing the strategic autonomy of the Indian defense forces.

The integration capabilities of the Hammer missile extend beyond the Rafale. The weapon system is designed to be compatible with India’s indigenous Tejas Light Combat Aircraft (LCA), providing a significant boost to the operational capabilities of home-grown platforms. This collaboration signifies a shift from a buyer-seller relationship to a co-development and co-production model, aligning with the broader defense strategy of the Indian government to build a self-reliant defense industrial base.

Economic Targets and Future Implications

The aggressive expansion strategy outlined by Safran is backed by specific financial and operational targets. The group aims to triple its annual revenue in India, targeting a figure exceeding €3 billion by the year 2030. To achieve this, the company is not only expanding its own facilities but is also restructuring its supply chain. Safran plans to increase its sourcing of components from Indian suppliers by 500% (a five-fold increase) by 2030, integrating Indian manufacturers more deeply into the global aerospace value chain.

These developments occur against the backdrop of a rapidly expanding Indian MRO market, which is projected to grow from its current levels to approximately $4 billion by 2031. With Indian carriers placing record-breaking orders for new aircraft, the demand for domestic maintenance capabilities is set to surge. Safran’s early positioning in this sector allows it to capture a significant share of this growth while supporting the operational stability of the region’s airlines.

Looking ahead, the company has indicated a willingness to further expand its industrial footprint based on future defense procurement. CEO Olivier Andriès indicated that if India places additional orders for Rafale jets, beyond the initial 36 and the 26 Marine variants, Safran is committed to establishing a Final Assembly Line (FAL) for the engines in India. This potential development suggests that the current investments are part of a phased roadmap that could see India becoming a central hub for advanced aerospace manufacturing in the coming decade.

Conclusion

Safran’s simultaneous inauguration of civil and military facilities in Hyderabad represents a pivotal moment in the Indian aerospace sector. By localizing critical maintenance capabilities for the LEAP and M88 engines and initiating the local production of advanced weaponry through the BEL joint venture, the company is effectively bridging the gap between global technology and local requirements. These steps not only support the operational efficiency of Indian airlines and the Air Force but also generate significant economic value through job creation and foreign exchange savings.

As the Indian aviation market continues its trajectory toward becoming one of the largest in the world, the establishment of such infrastructure is essential for sustainable growth. The commitment to triple revenues and multiply local sourcing suggests that this partnership will continue to evolve, potentially leading to even more advanced manufacturing capabilities, such as engine assembly lines, being established in India in the near future.

FAQ

Question: What is the significance of the new LEAP MRO facility in Hyderabad?
Answer: The new facility is the largest MRO center for CFM International LEAP engines in the world and the first established by a global OEM in India. It will service engines for Airbus A320neo and Boeing 737 MAX aircraft, helping Indian airlines reduce costs and turnaround times.

Question: What is the “Hammer” Joint Venture?
Answer: It is a 50:50 partnership between Safran and Bharat Electronics Limited (BEL) to manufacture the “Hammer” air-to-surface weapon in India. The weapon has a range of 70 km and will be integrated into Rafale and Tejas aircraft.

Question: How does this expansion impact the Indian economy?
Answer: The expansion aims to triple Safran’s revenue in India to over €3 billion by 2030 and increase local sourcing by five times. Additionally, domestic MRO capabilities are expected to save billions in foreign exchange by reducing the outsourcing of maintenance work.

Sources

Safran Group Press Release