f death is the great leveller, Exhibit 'B' is traffic jams. Chock-a-block roads are the accidental, yet inevitable, meeting places of bicycles and BMWs, motorcycles and Mercs, autorickshaws and Audis. Like it or not, their riders and occupants spend many uncomfortable minutes, even hours, together.
As if on cue, this is where helicopters enter. Choppers ensure that traffic jams are for labourers, the salaried and the rich - they restore parity to the super rich and the powerful around the world and in the process, present a veritable boon for their makers. India, it turns out, is no different.
Steve Estill, who has spent the last decade selling helicopters, experienced first hand this "enormous" potential in the Indian market about four years ago. Estill, vice-president, strategic partnerships at US helicopter maker Sikorsky Aircraft Corp, was stuck in a five-hour traffic snarl en route to his hotel from the Mumbai airport. "I prayed for a helicopter to rescue me," he recalls.
No helicopter emerged on the horizon for Estill, but his company has had better luck. Sikorsky has sold six helicopters to "very rich" Indians, as one would expect, since Estill's ordeal. It is in talks with five state governments and corporate houses to sell more.
As if on cue, this is where helicopters enter. Choppers ensure that traffic jams are for labourers, the salaried and the rich - they restore parity to the super rich and the powerful around the world and in the process, present a veritable boon for their makers. India, it turns out, is no different.
Steve Estill, who has spent the last decade selling helicopters, experienced first hand this "enormous" potential in the Indian market about four years ago. Estill, vice-president, strategic partnerships at US helicopter maker Sikorsky Aircraft Corp, was stuck in a five-hour traffic snarl en route to his hotel from the Mumbai airport. "I prayed for a helicopter to rescue me," he recalls.
No helicopter emerged on the horizon for Estill, but his company has had better luck. Sikorsky has sold six helicopters to "very rich" Indians, as one would expect, since Estill's ordeal. It is in talks with five state governments and corporate houses to sell more.
"We have been successful in a small way selling the S-76s [the VIP model can carry up to eight people] in India," says Estill. "But this is an exciting and dynamic marketplace," he says.
Buzzing Market
Sikorsky's antenna in India has been turned to its mainstay military market - one of its helicopters participated in the ill-fated attempt to capture a Somali warlord in 1993 in what became known as Black Hawk Down - and it is a late bloomer in the Indian civil market. But sales of rivals have been humming in India.
AgustaWestland of Italy has sold 50 civil copters in India this past six years. Market leader Bell Helicopter of the US has found 104 buyers since 1996 while Eurocopter Group, a Franco-German-Spanish venture, is said to have around 30 clients in India.
Still, these are early days to say "it's a bird... it's a plane... no it's a chopper". The country has only 280 commercial choppers for a population of 1.3 billion. Arvind Jeet Singh Walia, executive vice-president, India and South Asia at Sikorsky, says a city like Sao Paulo in Brazil with around 35 million people has nearly 700 helicopters. Helicopters are almost used as taxis there to fly from one building to another, he says.
The "meagre" number of choppers in India is surprising given that these machines have been around since 1953. But India's growth has been largely moderate, says K Sridharan, head of The Rotary Wing Society of India (RWSI), a not-for-profit umbrella organisation of helicopter stakeholders.
From 1953 to 1986, the commercial use of helicopters in India was limited to small aviation companies involved in communication and crop-spraying roles. Even the early years of Oil & Natural Gas Corporation's oil and gas exploration work - most Indian customers are from this segment - was supported by the Indian Air Force and foreign-charted helicopters.
In 1986, the government formed Helicopter Corporation of India (now known as Pawan Hans Helicopters) with a fleet of 42 helicopters. It turned out to be the first booster to the industry, but did no wonders to growth.
Yet, if people in some parts of India at least think there are more choppers buzzing overhead than previously, they are right. Chopper sales have nearly doubled between 2005-06 and 2010-11, according to RWSI. The market has been growing at 12% since 2007
From 1953 to 1986, the commercial use of helicopters in India was limited to small aviation companies involved in communication and crop-spraying roles. Even the early years of Oil & Natural Gas Corporation's oil and gas exploration work - most Indian customers are from this segment - was supported by the Indian Air Force and foreign-charted helicopters.
In 1986, the government formed Helicopter Corporation of India (now known as Pawan Hans Helicopters) with a fleet of 42 helicopters. It turned out to be the first booster to the industry, but did no wonders to growth.
Yet, if people in some parts of India at least think there are more choppers buzzing overhead than previously, they are right. Chopper sales have nearly doubled between 2005-06 and 2010-11, according to RWSI. The market has been growing at 12% since 2007
The chopper boom in India has coincided with the spectacular growth in the rise of the incomes of the people who can afford them. India is home to 57 billionaires, according to Forbes. The combined wealth of India's 100 richest, though down 20% from a year ago, was a staggering $241 billion in 2011.
Soaring Sales
Ravi Menon, executive director of Airworks, which does maintenance and repair work for Bell and AgustaWestland machines, says the number of choppers sent to his company has doubled this past five years.
Indeed, a comatose market is finally showing signs of life, according to experts. Dhiraj Mathur, India leader for aerospace and defence at audit and consulting firm PricewaterhouseCoopers International, estimates 250 more copters will be purchased in India by 2017.
The sharp uptick of helicopters does not surprise him. The civil aviation sector is highly correlated to the economy, he says, adding that as corporates make more money and the number of billionaires rise, more copters will be bought.
Helicopters cost between $1.2 million and $15 million, depending on the size and type of machine. An hour of flying a chopper, accounting for insurance, landing fees, fuel and maintenance costs, and again depending on whether it has single or twin engines and its seating capacity, could set back its billionaire owners by `50,000 to Rs 1.75 lakh. Peanuts, as our finance minister would say.
Soaring Sales
Ravi Menon, executive director of Airworks, which does maintenance and repair work for Bell and AgustaWestland machines, says the number of choppers sent to his company has doubled this past five years.
Indeed, a comatose market is finally showing signs of life, according to experts. Dhiraj Mathur, India leader for aerospace and defence at audit and consulting firm PricewaterhouseCoopers International, estimates 250 more copters will be purchased in India by 2017.
The sharp uptick of helicopters does not surprise him. The civil aviation sector is highly correlated to the economy, he says, adding that as corporates make more money and the number of billionaires rise, more copters will be bought.
Helicopters cost between $1.2 million and $15 million, depending on the size and type of machine. An hour of flying a chopper, accounting for insurance, landing fees, fuel and maintenance costs, and again depending on whether it has single or twin engines and its seating capacity, could set back its billionaire owners by `50,000 to Rs 1.75 lakh. Peanuts, as our finance minister would say.
In any case, as BS Singh Deo, managing director of Bell Helicopter India says, expenses related to helicopters are more than offset by cutting down the travel time.
Pradeep Srivastava, a helicopter pilot, says almost every day he encounters people wishing to buy copters. "They are taken aback only for a moment when they hear the price."
That's not to suggest they are reckless investors. "When Indians make an investment, they want to be sure it pays off," says Estill. "They look at the value they are getting. They want proof that the copter will operate as per the promised costs. They want to know how we will support the copter. They want us to train their personnel," he says.
Different Customers
Helicopters, from the accounts of Estill and his colleague Mick Maurer, president of Sikorsky Military Systems, offer a peek into the vanities and quirks of their owners. Maurer says one of his customers - a head of state from West Asia - wanted a shower in his copter. "When he came off the copter to meet people, he wished to be refreshed and clean. I said: 'Yes sir, you want a shower, you got one'."
Chopper Clients: Some of the private helicopter owners in India
Pradeep Srivastava, a helicopter pilot, says almost every day he encounters people wishing to buy copters. "They are taken aback only for a moment when they hear the price."
That's not to suggest they are reckless investors. "When Indians make an investment, they want to be sure it pays off," says Estill. "They look at the value they are getting. They want proof that the copter will operate as per the promised costs. They want to know how we will support the copter. They want us to train their personnel," he says.
Different Customers
Helicopters, from the accounts of Estill and his colleague Mick Maurer, president of Sikorsky Military Systems, offer a peek into the vanities and quirks of their owners. Maurer says one of his customers - a head of state from West Asia - wanted a shower in his copter. "When he came off the copter to meet people, he wished to be refreshed and clean. I said: 'Yes sir, you want a shower, you got one'."
Chopper Clients: Some of the private helicopter owners in India
Sikorsky has a customer in the UK who goes hunting with friends to Scotland in a chopper. Another client flies from building to building in a chopper for fear of kidnapping, says Maurer. Sikorsky, says Maurer, is never short of such "interesting" clients. With bankers and celebrities in New York, the imagination can run wild with interiors, he says.
Indians are not as demanding. Nor have they embraced choppers except to save time and for convenience. Their needs are limited to a television, a refrigerator and video games for the children.
One of Sikorsky's clients happens to be India's richest man, Mukesh Ambani, the chairman ofReliance Industries. Ambani's new home, Antilia, has three helipads. Sikorsky executives say Mukesh's wife Nita Ambani was very involved with designing the interiors of the two choppers. "We customised the interiors the way Mrs Ambani wanted," says Walia.
The interiors can also be configured for comfort with leather-clad seating accompanied by a drinks cabinet, a la luxury sedan of the skies. If these are unexciting demands compared with the West, they are a testament to a still fledgling market.
Diverse Clientele
The typical chopper client in India hails from businesses as diverse as petroleum and real estate. The majority belong to the offshore oil business like Reliance Industries' Mukesh Ambani and the Ruias of Essar. RWSI's Sridharan says at least 25 copters are being used daily to reach offshore oil platforms. Oil has long been the primary segment, but now corporate travel is driving sales.
Big business groups like the Ruias rely on choppers to fly top managers for strategic meetings. "Everybody is running a tight schedule," says a spokesman. Even smaller companies hire copters from charter companies for factory visits.
One of Sikorsky's clients happens to be India's richest man, Mukesh Ambani, the chairman ofReliance Industries. Ambani's new home, Antilia, has three helipads. Sikorsky executives say Mukesh's wife Nita Ambani was very involved with designing the interiors of the two choppers. "We customised the interiors the way Mrs Ambani wanted," says Walia.
The interiors can also be configured for comfort with leather-clad seating accompanied by a drinks cabinet, a la luxury sedan of the skies. If these are unexciting demands compared with the West, they are a testament to a still fledgling market.
Diverse Clientele
The typical chopper client in India hails from businesses as diverse as petroleum and real estate. The majority belong to the offshore oil business like Reliance Industries' Mukesh Ambani and the Ruias of Essar. RWSI's Sridharan says at least 25 copters are being used daily to reach offshore oil platforms. Oil has long been the primary segment, but now corporate travel is driving sales.
Big business groups like the Ruias rely on choppers to fly top managers for strategic meetings. "Everybody is running a tight schedule," says a spokesman. Even smaller companies hire copters from charter companies for factory visits.
Chopper activity, says Airworks' Menon, is no longer confined to Mumbai, Surat and Hazira. It has moved to places like Bhuvaneshwar and Guwahati, he says. "In a sense, copters are driving industrial growth," he says.
Companies also use choppers for medical evacuations. An AgustaWestland copter was used to provide air ambulance cover at the inaugural Indian Formula 1 race last year. Still, copter use boils down to time and convenience.
The super affluent have the money, but lack time. They might want to fly to 3-4 sites a day. They have to be back for a business meeting or return home by evening. How long would that take by road?
Helicopters are, in that sense, godsend. They save time with their twin engines, plane-like streamlining and a top speed of around 350 kmph. Choppers can fly at night, bad weather, over open water and across built-up areas.
Easy Go, Easy Come
The important thing to note, according to Walia, is that people are going from point A to point B, completely bypassing the road network. "So if Mr Ambani is going from Mumbai to his refinery in Jamnagar in a copter, he can have people with him, he can have his meeting and by the time he reaches after an hour and a half... he's already got his feedback, he's already made up his mind about a decision."
Not only is there plenty of room on board to do business - there's enough leg space so that you don't have to knock each other's knees, says Walia - the interiors of a chopper have been "made quiet" so that people can talk without having to shout.
As jets have come to be, choppers are no longer a status symbol, but a necessity. Walia says choppers offer a leg up over jets because to fly the latter, one needs a runway. There is also the matter of long delays over clearances to fly because of the chaos at airports.
Companies also use choppers for medical evacuations. An AgustaWestland copter was used to provide air ambulance cover at the inaugural Indian Formula 1 race last year. Still, copter use boils down to time and convenience.
The super affluent have the money, but lack time. They might want to fly to 3-4 sites a day. They have to be back for a business meeting or return home by evening. How long would that take by road?
Helicopters are, in that sense, godsend. They save time with their twin engines, plane-like streamlining and a top speed of around 350 kmph. Choppers can fly at night, bad weather, over open water and across built-up areas.
Easy Go, Easy Come
The important thing to note, according to Walia, is that people are going from point A to point B, completely bypassing the road network. "So if Mr Ambani is going from Mumbai to his refinery in Jamnagar in a copter, he can have people with him, he can have his meeting and by the time he reaches after an hour and a half... he's already got his feedback, he's already made up his mind about a decision."
Not only is there plenty of room on board to do business - there's enough leg space so that you don't have to knock each other's knees, says Walia - the interiors of a chopper have been "made quiet" so that people can talk without having to shout.
As jets have come to be, choppers are no longer a status symbol, but a necessity. Walia says choppers offer a leg up over jets because to fly the latter, one needs a runway. There is also the matter of long delays over clearances to fly because of the chaos at airports.
With a chopper, you can land pretty much wherever you want - on top of buildings and on land - as long as it's safe and you have permission. "All you want is area of 25 square metres that is cleared off obstructions," says Srivastava, who has been flying Samajwadi Party scion Akhilesh Yadav to campaign for the Uttar Pradesh election.
But both machines are complementary. Mukesh's brother Anil Ambani, who is regularly seen in the corridors of power in Delhi, is said to fly to the capital in a jet and commute on a chopper. He can step off a jet, whirl around Delhi and spare himself the rush hour.
Convenience apart, buying choppers also turns in monetary benefits. Owners can lease choppers to charter companies. There is no shortage in that department with companies such as Global Vectra, Mesco Airlines and Million Air Executive Jet Service. Owners typically use choppers for around 400-450 hours a year and turn them over to charter companies for the remainder.
The other big growth driver happens to be elections. "People spend big bucks on copters but recoup the amount in 3-4 months. It's a jackpot,"says Sridharan. They also pass copters to politicians for favours during elections, he says.
Identifying owners at times can be difficult in such cases. There are many fly-by-night operators, says Sridharan. "It is difficult to draw a line between the good and bad in this business," he says.
The only downside in the seemingly unstoppable growth of copters in India appears to be the spate of deaths of users in recent years. Former Andhra Pradesh chief minister YS Rajasekhara Reddy and his Arunachal Pradesh counterpart Dorjee Khandu died copter deaths. Between April 19 and June 19, 2011, there were four big accidents involving civil helicopters in India, according to RWSI. Twenty-seven people were killed.
But chopper makers are not worried because they say 99% of the accidents were due to weather and not machine or engine failure. The new choppers have enhanced safety features, offering technology that assists pilots to land in unprepared surfaces, help them see through dust digitally and fly to predetermined locations.
In any case, people who want to own a copter are said to be astute. "They want to be safe, safe, safe... safety is always the foremost thing in their minds," says Estill. And we thought it was money.
Bigger Magnet: Military Market
A raft of helicopter makers such as Boeing, Sikorsky Aircraft Corp, Bell Helicopter, Eurocopter and AgustaWestland are hovering over the civil market in India. But they are also eyeing a bigger prize: military deals.
The Indian armed forces are upgrading their ageing fleet and that means big orders and big money, running into billions of dollars, for these companies. According to Reuters, Indian Navy plans to induct 50 light helicopters. First off the block is an order for 16 multi role helicopters. Indian Army has a joint requirement for about 400 light helicopters along with the Air Force.
Some companies are upbeat about the recent contact to buy war planes worth $15 billion that the government awarded to France's Dassault Rafale. Mick Maurer, president of Sikorsky Military Systems, says the procurement process in India is getting better. "It is more rigorous and more transparent. We believe that suits us very well."
Maurer says in the long term, Sikorsky sees a 3:1 ratio vis-a-vis the military and commercial sales in terms of the size of the market. But he says both are very complementary markets. Many of the machines can be used for commercial and quasi-defence activities.
If the civil copter market in India has come alive, it is thanks to the armed forces. Foreign companies in the defence market are bound by what is called offset obligations. India's defence procurement policy rules that foreign companies require that win contracts of Rs 300 crore or more must procure equipment worth at least 30% of the deal amount from local suppliers to boost the homegrown arms industry.
The Indian military has also become smarter, according to foreign company executives. "Sometimes manufacturers give a special price on aircraft, but raise the price on the support side. India has become aware of this and now looks at the total lifecycle costs in deals," says Maurer.
The upshot is that companies like Sikorsky and Eurocopter have partnered Indian counterparts to set up base in India. Sikorsky has formed two joint ventures with the Tatas to make helicopter cabins and aircraft components.
Eurocopter, which formed an Indian unit in 2010, has tie-ups with the Mahindras, the Tatas and government-owned Hindustan Aeronautics Limited. AgustaWestland, the helicopter unit of Finmeccanica SpA of Italy, has a joint venture with the Tatas called Indian Rotorcraft.
All these companies plan to expand in India. Textron, the parent company of Bell Helicopter, has opened a new global technology centre in Bangalore with more than 400 engineers. Bell plans to expand the workforce there over the next year, says the company's India head, BS Singh Deo.
An AgustaWestland spokesman says the company recently opened a new larger office in Delhi. Copter makers are also expanding the customer support network by establishing authorised service centres along with a posse of engineers and technicians.
All this bodes well for the commercial market. The AgustaWestland spokesman says construction work is about to start on the Indian Rotorcraft's facility in Hyderabad, which will produce the company's eight-seat utility helicopter AW119. Sikorsky eventually plans to produce helicopters that are virtually "100% done here". "We are already a local company," says Maurer.
In any case, people who want to own a copter are said to be astute. "They want to be safe, safe, safe... safety is always the foremost thing in their minds," says Estill. And we thought it was money.
Bigger Magnet: Military Market
A raft of helicopter makers such as Boeing, Sikorsky Aircraft Corp, Bell Helicopter, Eurocopter and AgustaWestland are hovering over the civil market in India. But they are also eyeing a bigger prize: military deals.
The Indian armed forces are upgrading their ageing fleet and that means big orders and big money, running into billions of dollars, for these companies. According to Reuters, Indian Navy plans to induct 50 light helicopters. First off the block is an order for 16 multi role helicopters. Indian Army has a joint requirement for about 400 light helicopters along with the Air Force.
Some companies are upbeat about the recent contact to buy war planes worth $15 billion that the government awarded to France's Dassault Rafale. Mick Maurer, president of Sikorsky Military Systems, says the procurement process in India is getting better. "It is more rigorous and more transparent. We believe that suits us very well."
Maurer says in the long term, Sikorsky sees a 3:1 ratio vis-a-vis the military and commercial sales in terms of the size of the market. But he says both are very complementary markets. Many of the machines can be used for commercial and quasi-defence activities.
If the civil copter market in India has come alive, it is thanks to the armed forces. Foreign companies in the defence market are bound by what is called offset obligations. India's defence procurement policy rules that foreign companies require that win contracts of Rs 300 crore or more must procure equipment worth at least 30% of the deal amount from local suppliers to boost the homegrown arms industry.
The Indian military has also become smarter, according to foreign company executives. "Sometimes manufacturers give a special price on aircraft, but raise the price on the support side. India has become aware of this and now looks at the total lifecycle costs in deals," says Maurer.
The upshot is that companies like Sikorsky and Eurocopter have partnered Indian counterparts to set up base in India. Sikorsky has formed two joint ventures with the Tatas to make helicopter cabins and aircraft components.
Eurocopter, which formed an Indian unit in 2010, has tie-ups with the Mahindras, the Tatas and government-owned Hindustan Aeronautics Limited. AgustaWestland, the helicopter unit of Finmeccanica SpA of Italy, has a joint venture with the Tatas called Indian Rotorcraft.
All these companies plan to expand in India. Textron, the parent company of Bell Helicopter, has opened a new global technology centre in Bangalore with more than 400 engineers. Bell plans to expand the workforce there over the next year, says the company's India head, BS Singh Deo.
An AgustaWestland spokesman says the company recently opened a new larger office in Delhi. Copter makers are also expanding the customer support network by establishing authorised service centres along with a posse of engineers and technicians.
All this bodes well for the commercial market. The AgustaWestland spokesman says construction work is about to start on the Indian Rotorcraft's facility in Hyderabad, which will produce the company's eight-seat utility helicopter AW119. Sikorsky eventually plans to produce helicopters that are virtually "100% done here". "We are already a local company," says Maurer.
