Defence offsets management

Offsets management and compliance advisory 

We advise and assist A&D original equipment manufacturers (OEMs) in:

  • Structuring offset and banking proposals
  • Preparing and submitting documentation relating to discharging offset obligations
  • Coordinating with Indian offset partners (IOPs) for collecting and managing relevant documentation
  • Following up with Defence Offsets Management Wing (DOMW) for claims submitted by BAE and responding to queries/ issues raised by the officials
  • Modification of offset proposal
  • Change in IOPs including partner search and due-diligence

Supply chain management for discharging offset obligations

We assist our clients in development of a supply chain structure which:

  • Compliant with Indian regulations and contract requirements
  • Takes into account business need of customer satisfaction
  • Takes into account contractual obligations under main and offset contract
  • Capable of bringing cost savings by building in efficiency through –
            i. Integrating main and offset programmes for cost efficiency
            ii. Optimising tax considerations (permanent establishment (PE)/VAT/tax exemptions/ transfer pricing issues etc.)

Offset partner search

We assist our clients in finding a suitable partner for offsets

  • Develop screening criteria in discussion with the Management
  • Prepare an initial list of partners operating in the A&D sector from secondary sources and through proprietary databases
  • Develop a list of potential partner companies by applying the agreed filters
  • Assess interest levels of shortlisted partners and arranging meetings with the client
  • Due-diligence of potential partners (financial, tax, forensic, commercial, regulatory)

PwC has developed an integrated “Offset Management Tool

  • A web-based online application to help OEMs automate their offset compliance monitoring and management process, thus making it more effective and efficient
  • Eases the management of complex and cumbersome regulatory/compliance requirements in discharging offset obligations or in banking credits under Indian defence offset policies which tend to be revised regularly
  • Reduces and streamlines the amount of coordination with multiple Indian Offset Partners (IOPs) for different programs under different offset policies
  • Customisable to suit your requirements
  • Automatically generates the periodic offset compliance reports, offset proposal documents, offset banking offer documents and customised MIS reports to efficiently monitor, control and manage the entire offset compliance process
  • Reduces the offset management cost of the OEMs

Contact us

Dhiraj Mathur

Partner and Leader, Aerospace and Defence, PwC India

Tel: +91 124 3306 516

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