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New subsidiary to assist growth of engineering capacity in India

Analysis

LONDON (Rolls Royce) - Rolls-Royce Group plc, the world leading provider of power systems and services, today announced that it has established a wholly-owned subsidiary in India to manage the growing volume of engineering work that it is sub-contracting in the country.

Based in Bangalore, Rolls-Royce Operations India Pvt Ltd will help the Group meet a need for greater engineering capacity over a range of its new programmes. It will enable Rolls-Royce to take advantage of the capability that exists in India to develop, reliably and to consistently high-quality standards, affordable aero-engineering solutions - including engineering analysis and design capability.

The new subsidiary will direct engineering work packages to Quality Engineering and Software Technologies (QuEST), which is a leading provider of global product development solutions based in Bangalore. QuEST is a highly successful, privately owned pioneer in engineering sub-contracting in India.

Following a successful 18-month pilot programme with QuEST, Rolls-Royce has now gained first-hand experience of the operational, commercial, financial and cultural requirements for successfully sub-contracting high quality engineering work to India.

In March 2005, a Rolls-Royce Centre was established in QuEST's Bangalore facilities and the volume of work has built up to require 100 locally-employed engineers. There are plans to double this number by early 2007. The Rolls-Royce Centre became fully operational in October 2005.

Sir John Rose, Chief Executive of Rolls-Royce, speaking in Bangalore today, said: "This expansion of Rolls-Royce in India builds on our long association with Bangalore. Next year we will celebrate 50 years of partnership with HAL. This is an excellent opportunity for bright engineers in India, as the new company will cover the whole range of engineering tasks. The new company reflects the quality of engineering in India, and illustrates how Rolls-Royce is investing in engineering capability around the world."

Mike Bradley, General Manager Rolls-Royce Operations (India) said: "Bangalore is the 'aero city' of India and has a population of high calibre young engineers that QuEST needs. It is this approach and the synergy that we have found here in Bangalore that encouraged us to form a relationship with QuEST and a centre where engineers will operate under the Rolls-Royce global standards of excellence."

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