HAL all set for next phase

Mega orders, joint ventures to drive growth

Hindustan Aeronautics Limited (HAL) is poised to enter the next phase of growth with a slew of mega orders and a series of joint ventures.

The company, whose order book stands at Rs 18,000 crore, hopes to get substantial offset business from Airbus which recently bagged a $1.8 billion order from the Indian Airlines to supply 43 aircraft.

Speaking to the media, chairman of HAL, Ashok Baweja said: "We are increasing our presence in the global markets and we are winning against some stiff competition. We are bullish for the next few years and this series of joint ventures will go a long way in our growth and to increase our presence in the global marketplace."

HAL is in the process of finalising JVs with companies like Snecma of France, IAI and Elbit of Israel.

"In the proposed JV with Snecma, we plan to take up manufacture of aero-engine components initially for civil engines for the global market and further expand to machining of forgings and castings of engine components. The JV with IAI is intended for joint marketing of Advanced Light Helicopter (ALH) and the pact with Elbit will be for joint development of aircraft simulators and subsequently will be expanded for production of advanced avionic systems," Baweja highlighted.

The company is also studying the viability of participating in International Russian Regional Jet (RRJ) Development programme, which will be a 60-95-seater jet, with Sukhoi Design Bureau, Boeing and a couple of other design firms in Russia.

"The aircraft will be powered by SM 146 engine developed by Snecma and participation in this programme will provide the opening for us to enter global civil aviation market," Baweja said.

Commenting on the Airbus deal, Baweja said: "The contract between Indian Airlines and Boeing is still being worked out for the $1.8 billion deal. We will certainly push for a clause in the contract that around 30 per cent of business should be offset to HAL."

The company, for the fiscal 2003-04, posted revenues of Rs 3,800 crore and expects to close this fiscal at Rs 4,200 crore.

Talking about the other defence projects HAL is working on, Baweja said: "We are actively pursuing a combat aircraft which will be much better than the Hawk and are also working on a combat helicopter. We have conceptualised these projects and we are working actively on these projects and expect significant headway soon. Till that happens, we are betting on our ALH "" Dhruv and Intermediate Jet Trainer to be our vanguard products."