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Sigma Advanced Systems hit a 5% upper circuit after the company announced a £125 million, or roughly ₹1,600 crore, long-term contract from Rolls-Royce. The deal has been signed through its recently acquired UK subsidiary, Bromford Precision Solutions.
The deets: this order comes on top of an earlier £300 million, or roughly ₹3,800 crore, long-term agreement with Rolls-Royce. Put the two together, and that's about ₹5,400 crore worth of agreements
Under the latest deal, Bromford will manufacture rings, casings, lock plates and other critical structures used inside aircraft engines across Sigma's manufacturing facilities in India and the UK.
Dual sourcing: Sigma can manufacture Rolls-Royce components in both India and the UK. This gives Rolls-Royce more flexibility and reduces its dependence on a single manufacturing location.
Zoom out: earlier this month, Reliance Industries and Rolls-Royce announced plans to work together on an indigenous combat aircraft engine for India's Advanced Medium Combat Aircraft, or AMCA, programme.
Now, for years, India's aerospace story was largely about buying aircraft and engines made elsewhere.
But now, the government has been pushing defence indigenisation, global aerospace companies are looking to diversify their supply chains, and Indian manufacturers are trying to move from supplying relatively simple components to precision parts, complete assemblies and eventually critical technologies such as aircraft engines.
