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13 Dec 17. Bangaluru-based Machani Group, which runs one of India’s oldest and largest automobile springs company Stumpp, Schuele and Somappa Springs (SSSS), has decided to focus on the aerospace and defence sector for accelerating its growth. The 70-year-old group, now run by the third generation of Machani family, has a turnover of $200m with interests in real estate and a rural BPO.
SSSS automobile sector customers include Fiat, Ashok Leyland, Ford, Honda, GM, Bajaj, Eicher, Mahindra and TVS. SSSS floated a 100 per cent subsidiary Aerovite in March 2017 to focus on the opportunities in Aerospace and defence sector according to Ravi Machani, managing director of SSSS. “Given our expertise in manufacturing, we want to leverage our design and development expertise in electrical, mechanical and optical domain to provide engineering solutions.”
Aerovite provides solutions in areas like wire harness and cable assembly, obsolescence management and virtual reality. “While springs will continue to be our main business, Aerovite will help accelerate our growth.” Apart from aerospace and defence, Machani says Aerovite will also address engineering solution opportunities in medical, instrumentation, home land security and automation.
Machani said the group had made ‘substantial investment into growing Aerovite’ but declined to specify how much had gone into the new subsidiary. Aerovite has already bid to supply 50 UAV’s (unmanned aerial vehicles) to the Indian Army. “If Make in India has to succeed, players with manufacturing expertise like ourselves and others have to play a part in it,” says Ravi Machani. (Source: Google/Business Today)
13 Dec 17. Airbus chairman concedes need for management shake-up. Corruption probes will spur ‘staggered and reasonable’ change, says Ranque. Denis Ranque, the chairman of Airbus, has acknowledged that senior management will have to change after a raft of corruption investigations that have rocked Europe’s flagship aircraft maker. “There is no strict timeline,” Mr Ranque said in an interview with the Financial Times. “That enables us to make a staggered and reasonable approach to this. Some changes will be needed but it is far too early to say when, who and how.” Mr Ranque was making his first public comments on speculation over management changes before a board meeting on Thursday that will examine succession plans for Tom Enders, chief executive, and Fabrice Brégier, chief operating officer. Mr Enders is expected to step down at the end of his second term in March 2019, while Mr Brégier has expressed “surprise” at reports that he will leave early next year. The speculation has laid bare an internal power struggle over who will leave and when, and relations between the two men have long been tense. The pressure for change comes as Airbus seeks to prove to anti-corruption authorities that it is strengthening compliance procedures in the wake of allegations about its use of middlemen to win aircraft deals. The company is facing investigations in the UK, France, Germany and Austria. There is no strict timeline. That enables us to make a staggered and reasonable approach to this Denis Ranque A change of top management — even though neither executive is accused of wrongdoing — is seen as crucial to winning the support of UK and French anti-corruption authorities for a settlement. The new management team at Rolls-Royce was a key consideration in the decision by UK anti-corruption authorities to allow the aero-engine company to strike a £672m settlement last January after it admitted a string of offences. However, its management changes had been the result of profit warnings over two years, rather than a deliberate response to the investi