Rolls-Royce Sets Ambitious Indian Expansion Plan After Modi Meeting

Rolls-Royce?s chief executive, Tufan Erginbilgic, is accelerating the company?s push in India. Following a high-level encounter with Prime Minister Narendra Modi, the aero-engine maker outlined a broad plan to scale its footprint in the country. With the shares perched below January?s peak, investors are weighing whether this strategy can trigger the next leg higher.

The plan in focus

Rolls-Royce unveiled a major strategic push aimed at delivering long-term growth by deepening its presence across three core sectors in India: defense, civil aviation, and energy. A centerpiece of the announcement is a major expansion of the Indian workforce, with the firm targeting roughly 10,000 employees in the country?a doubling of its current headcount.

Alongside job growth, Rolls-Royce intends to multiply its local procurement from Indian suppliers by tenfold. A key driver behind these measures is the potential co-development of a next-generation fighter aircraft engine, aligning with India?s objective to achieve greater technological independence in its defense sector.

Operational momentum and capital activity

The company?s day-to-day operations continue to generate traction. Rolls-Royce recently delivered the first Airbus A350-900 to EgyptAir, powered by Trent XWB-84 engines, underscoring sustained demand for the Trent engine family in the large?aircraft market.

Despite these fundamentals, the share price is trading around 1,226 pence, below the all-time high of 1,306.60 pence set on January 14. Management is actively leveraging this consolidation phase: a stock exchange notice issued on Wednesday confirmed the buyback of more than 517,000 Rolls-Royce shares as part of the ongoing 200 million?pound program.

What?s ahead for investors

The next decisive event for market participants is Rolls-Royce?s full-year results, due on February 26. Analysts are looking for revenue of 19.5 billion pounds, which will be a critical read on the company?s trajectory amid the India expansion agenda and the current buyback activity.