By Debarati Roy and Kartik Goyal
Feb. 14 (Bloomberg) -- Boeing Co., the Pentagon's second- largest supplier, and India's Tata Group will start a venture in India to supply more than $500 million of defense-related aerospace components to the U.S. company.
The venture will be set up by June, India's Tata Industries Ltd. said in an e-mailed statement today. The company would initially get contracts from Boeing to make components for planes used by the U.S. Navy and the Royal Australian Air Force.
Boeing, Lockheed Martin Corp. and other overseas defense contractors are partnering with Indian companies ahead of their bids for India's $11 billion of fighter jets, the biggest order for combat planes in 15 years. The winner of the deal must order at least 50 percent of defense component purchases from India.
Boeing may form more ventures in India to expand the base of component suppliers for commercial and defense applications, the company said in the statement. The venture with Tata will also later supply parts to Boeing's other programs.
Tata and Boeing also plan to set up a research and development center for advanced manufacturing technologies.
Boeing, which trails behind Lockheed Martin as a supplier to the U.S. military, on Feb. 6 announced a partnership with Tata group's TAL Manufacturing Solutions Ltd. to make floor beams for the delayed 787 Dreamliner commercial jet.
The U.S. company said on Feb. 12 it plans to bid for as much as $15 billion of military orders in India over the next 10 years. India bought 100 billion rupees ($2.6 billion) of defense equipment in the year ended March 31.
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