Crown Group is transitioning from a maintenance-focused role to manufacturing, beginning with PCBs and electronic systems under the Make in India programme, says Admiral Paras Nath, Group President of Crown Group.
In an interview with BW Businessworld, Admiral Paras Nath, Group President of Crown Group, spoke about the conglomerate’s defence focus, spanning marine, aerospace and land systems. With over four decades of expertise in naval MRO and growing capabilities in aviation and land platforms, Crown Group is now moving beyond maintenance into manufacturing, starting with PCBs and electronic systems under the Make in India initiative. Highlighting India’s skilled defence veterans as the group’s biggest strength, Admiral Nath discussed challenges in exports, NCNC trials, foreign investment, and the competitiveness of India’s Rs 70,000–80,000 crore MRO market while outlining Crown Group’s global ambitions. Excerpts:
Could you tell us about Crown Group and its defence verticals?
Crown Group is a large conglomerate with businesses spanning defence, hospitality, real estate, IT and artificial intelligence. Within our Defence Engineering Group, we operate across three verticals that broadly mirror the Army, Navy and Air Force. These are: Marine Wing (Naval Systems), Aerospace Wing (Aviation Systems) and Land Systems (Army platforms).
The Marine Wing is the largest and the oldest, with more than 40 years of experience. Our flagship company, Dynatron, manages most of our marine activities. We have factories in Karwar, Cochin and two in Mumbai, along with teams based in Visakhapatnam, Cochin and the Andaman & Nicobar Islands. We handle warship repairs and MRO (Maintenance, Repair and Overhaul).
The Aerospace Wing is based in Goa, where our companies ZealTek and Aviatek provide MRO services for Kamov helicopters, MiG-29K aircraft and other aviation assets.
The Land Systems vertical, located in Chennai, primarily supports the MRO of tanks such as the T-72 and T-90. Our headquarters is in Delhi, and each company under the group has its own CEO.
What sets Crown Group apart is our human resource strength. Many of our senior leaders and workforce come from the Army, Navy and Air Force with 30–40 years of service experience. They bring invaluable discipline and expertise. Alongside them, we now hire young technical talent from universities. In my view, this combination of seasoned defence veterans and skilled engineers is the group’s greatest strength.
How do you see Crown Group’s position compared to other Indian defence companies?
It’s difficult to compare directly, as Adani and Mahindra are very large corporations engaged in capital acquisitions and manufacturing, producing tanks, aircraft and other major platforms. But, Crown Group, on the other hand, has so far focused mainly on MRO services, ensuring ships, aircraft, and tanks remain operational by providing repair and product support. That’s our niche.
China is building ships at an enormous scale, even surpassing the US. How do you assess India’s shipbuilding capabilities in comparison?
There is no doubt that China is far ahead in terms of numbers, warships, aircraft and submarines. But India is no small player. Our Army is the third largest in the world, our Navy the fourth, and our Air Force also ranks among the top globally.
The real differentiator, in my opinion, is the quality of Indian personnel. The professionalism, training and adaptability of our soldiers, sailors and airmen are second to none. That quality often outsmarts sheer numbers.
Of course, as a developing country, India must balance defence spending with socio-economic needs like healthcare and infrastructure. But with growing government support, I believe we will soon catch up.
Defence exports from India have picked up in the last couple of years. How do you view this change?
Earlier, defence exports were not permitted, which limited opportunities. Today, thanks to government policy, exports are possible and encouraged.
For any businessman, however, the challenge remains: if you set up an expensive factory, how certain are you that you will get consistent orders? You must invest, build capacity, show your product and then compete in tenders. If you don’t win, you risk sinking your investment. That uncertainty is still a hurdle.
Defence is a sensitive sector. Do you think allowing more foreign investment will be risk-free for India?
Yes. In fact, defence is already open to foreign direct investment, up to around 76 per cent. Make in India mandates that at least 60 per cent of the work be done in India, which ensures local capacity building. Foreign partnerships bring in both technology and capital.
Of course, there are security and geopolitical considerations when partnering with certain countries. But overall, FDI is positive for the sector.
What role do you see artificial intelligence (AI) playing in defence, and how is Crown Group preparing for it?
Traditionally, we have been an MRO company, but now, with the Make in India push, we are moving into manufacturing. A key area is electronic chips and printed circuit boards (PCBs).
So far, we have repaired these complex PCBs for aviation and marine systems without access to drawings or manuals, which is extremely challenging. But now we are setting up infrastructure in Goa to manufacture PCBs locally. Equipment from Japan has already been ordered, and we expect production to begin in three to four months.
This is our first step into manufacturing. In the future, we may expand to radar systems, integrated bridge systems, night-vision devices and more, and there AI will matter more.
Crown Group has collaborations with global companies like ZF, OTA and United Shipbuilding. How are these partnerships progressing?
Our collaboration with ZF Gearbox, a renowned German company, has been ongoing for over 30 years. We are their Indian representatives, supporting gearboxes used by the Navy, Coast Guard and inland waterways vessels. Our personnel also train abroad to stay updated.
Now, under Make in India, we are encouraging partners like ZF to start manufacturing in India. But for them, investment depends on market size. If demand is limited, they hesitate. This is why exports become crucial; if we can make not only for India but also for global markets, foreign partners will be more willing to invest here.
Where do you see opportunities for Crown Group in defence exports?
There are two aspects: hardware and services. For hardware, exports depend on market demand. For services, India has a global reputation, our engineers are valued everywhere.
For Crown Group specifically, we see opportunities in neighbouring countries. For example, the Philippines has bought the BrahMos missile system and will require maintenance support. Similarly, Vietnam, Malaysia, and Gulf countries operate platforms similar to India’s, so they need our expertise.
India imports advanced systems like Rafale jets. How do you see the challenge of maintaining such high-end technology?
It’s true, when we import advanced systems, maintenance is initially dependent on the OEM. But now contracts are based on performance-based logistics.
Earlier, once the warranty expired, the buyer had to manage on their own. Now, contracts include life-cycle costs covering hardware, training, spares and services for 30 years. This ensures sustained support and technology transfer, enabling us to gradually indigenise maintenance.
Coming to MRO specifically, how competitive is this sector in India?
It is highly competitive. Many companies, both big and small, operate in Karwar, Mumbai, Visakhapatnam and elsewhere. The defence MRO market in India is easily worth Rs 70,000–80,000 crore, covering tanks, aircraft, ships and submarines.
Competition is stiff, but that drives us to maintain quality and stay cost-competitive.
Does Crown Group work with the Indian armed forces under active agreements?
Yes. To work with the Army, Navy or Air Force, companies must first obtain registration, which involves inspections and financial vetting. Once registered, you can bid for tenders.
Crown Group is registered across the Navy, Air Force, HAL and all major defence shipyards. We are also expanding to paramilitary forces like the BSF and inland waterways.
Internationally, we are in discussions with Vietnam, the Philippines and some Gulf countries for potential maintenance partnerships.
What are Crown Group’s future investment and expansion plans?
We are expanding our facilities. In Karwar, our factory has been established for marine systems. In Goa, we are upgrading facilities for aviation MRO. We are also exploring opportunities in commercial aviation MRO, since avionics and radar systems often overlap with military systems.
In shipbuilding, India has historically taken longer timelines, whether for aircraft like the Tejas or naval platforms. The reason is simple: limited orders. If a shipyard is asked to build one ship, it invests only in that. If it receives orders for 100 ships, its capacity will expand rapidly.
This is changing now, with the government encouraging production of merchant ships and tankers as well.
Defence startups often complain about NCNC (No Cost, No Commitment) trials. How do you see this affecting innovation?
It’s a real challenge. Imagine you are a startup investing heavily to develop a system, only to be asked to provide it on NCNC terms for trials. If it fails or is delayed, you bear all the financial risk.
This discourages smaller players. The government is addressing this through soft loans and other support, but risk remains high. That said, startups are showing resilience, and many are doing well despite the challenges.
Finally, what do you think is still missing in India’s MRO sector?
The sector needs larger scale, stronger demand signals and faster decision-making. We have the expertise and manpower, but to fully realise potential, the industry requires consistent orders, timely payments and encouragement to compete globally.
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