Could India become the next global aerospace manufacturing hub?
A bold new 7-year agreement between Austrian aviation major FACC AG and Goa-based Kineco Aerospace & Defence might just be the sign we’ve been waiting for. Announced at the 2025 Paris Air Show, this partnership marks the first time a European aerospace giant has chosen an Indian company from Goa to supply structural parts for passenger aircraft. It’s a story that goes beyond one contract—it’s about India’s ascent in the global aerospace value chain.
In this blog, we decode what the deal really means for India’s aerospace ambitions, why global supply chains are shifting toward Indian firms, and how this could impact unlisted investors betting on defence and aerospace plays.
Duration: 7 years
Partnership: FACC AG (Austria) with Kineco Aerospace (India)
Scope: Manufacturing composite structural parts for commercial aircraft
Rollout: Begins after a 10-month technical integration phase
This partnership makes Kineco the first Goan company to enter global commercial aerospace supply—a big win for India’s manufacturing credibility.
FACC, which previously sourced parts from China and France, is now pivoting toward India due to:
Rising geopolitical tensions with China
Global push to de-risk supply chains
India’s cost competitiveness and improving quality compliance
By signing this deal, Kineco joins FACC's elite global supplier network that caters to aviation giants like:
Airbus
Boeing
Bombardier
Embraer
FY2024 Revenue: €884.5 million (~₹8,300 crore)
High-profile clientele and European pedigree
Aircraft Orders: Air India and IndiGo have placed orders for 1,830 aircraft (Airbus + Boeing)
Kineco parts could be used in these aircraft, giving them immediate market visibility
India's aerospace share: Currently at ~2% globally
Kineco Aerospace has:
Built Tier-1 production capabilities over the past decade
Supplied to HAL, ISRO, and BAE Systems
Invested heavily in automation, robotics, and compliance systems
With India's growing push on Make-in-India for defence and aviation, Kineco represents a serious player capable of global delivery.
This deal could serve as a blueprint for other European and American firms to look to India
Reinforces India’s position as a resilient and cost-effective partner
Rising aviation demand in India (fastest-growing air passenger market)
Shift from low-cost labor to high-tech engineering exports
Unlisted players in aerospace manufacturing like Taneja Aerospace, or Kineco (if they go public) may see strong re-rating
Institutional interest likely to rise in Tier-1 suppliers with European linkages
This isn’t just another supplier contract—it’s a strategic geopolitical shift.
Kineco’s partnership with FACC showcases the rise of India as a trusted global manufacturing partner in the high-stakes aerospace industry. It validates the Make-in-India vision not just as a slogan, but as a tangible business reality.
For unlisted investors, this move opens up a whole new space: betting on aerospace firms with global linkages, certification pedigree, and domestic defence exposure. It’s time to look beyond software and fintech—the next sunrise sector might just be cruising at 35,000 feet.
Follow UnlistedZone for more in-depth IPO insights, financial analysis, and exclusive updates from the unlisted space.