Rolls-Royce will increase the sourcing of high precision aero- engine components with the inauguration of its third co-owned manufacturing unit in Hosur this week, said Sashi Mukundan, company’s executive vice president (transformation), India.

It is also expanding its global capability and innovation centre in Bengaluru to bid for Make in India opportunities in engines and propulsion systems.

While Rolls-Royce relies on third party suppliers, it also has a 50:50 joint venture with Hindustan Aeronautics Limited. The JV - International Aerospace Manufacturing Private Limited (IAMPL) has production lines in Bengaluru and Hosur. A third manufacturing unit has been developed at Hosur with an investment of around 30 million pounds and this will help the company to source more civil and military aircraft engine components.

Mukundan said Rolls-Royce is also growing its business services and engineering teams at its Bengaluru facility to make it the company’s largest capability hub. The facility supports in-house HR, finance, procurement functions while its engineering teams work alongside civil aerospace and defence businesses.

These investments are crucial for the UK-headquartered company as these drive business efficiencies and results in better profitability. The company reported strong performance at the group level in 2025 and generated an operating profit of 3.5 billion pounds, it announced in February

Similarly these investments are a part of the company’s ambitions to design and develop products for India such as engines for in development Advanced Medium Combat Aircraft. It has also expressed intent to collaborate with the Indian Navy on an electric warship project. The company’s global CEO Tufan Erginbilgic visited India twice in the past seven months showcasing its ambitions.

“We have deep ambitions to develop India as a home for Rolls-Royce building on our strong and successful partnership,” Erginbilgic said during his visit last October.

“Our competitively advantaged technologies across air, land and sea applications position us to successfully build in-country capabilities and foster strategic partnerships that will accelerate India’s progress towards a Viksit Bharat,” he had said.  

Published on May 10, 2026