The state-owned helicopter operator is broadening its customer base, including via joint ventures, and ramping up its fleet.
State-run Pawan Hans Helicopters, which has emerged as Asia’s leading helicopter, is working towards building a fleet of 500 helicopters. That’s a huge increase over its current fleet strength of 41 helicopters, which have notched up more than 400,000 hours of flying and over 1,475,000 offshore landings in the western region.
The company’s strategy for this scale up: Focus on joint ventures and acquire new helicopters through government funding, internal sources and debt. Its growth strategy lays emphasis on improvements in efficiency and operations to take on competition from the private sector to consolidate its presence across the country.
“The main objective of the growth strategy in this competitive scenario is to provide superior services to customers at competitive prices to the expand customer base, including the formation of JVs. The company has been acquiring new helicopters to cater to increased demands,” says Pawan Hans Chairman & Managing Director R K Tyagi.
Pawan Hans’ authorised capital is Rs 120 crore and present paid-up capital is Rs 113.76 crore, of which Rs 89.27 crore is held by the government and Rs 24.50 crore by exploration & production major Oil & Natural Gas Corporation (ONGC).
The authorised capital is being increased to Rs 250 crore and paid-up capital to Rs 245.616 crore. The government is infusing Rs 36 crore to take its share to Rs 125.27 crore and ONGC is pumping in Rs 95.85 crore to take its share to Rs 120.35 crore. ONGC’s equity holding will go up to 49 per cent from 21.5 per cent. With ONGC increasing its stake, the government of India’s holding would be diluted to 51 per cent from 71.8 per cent.
ONGC, which has had an association with the chopper operator for almost 25 years, has also agreed to give Pawan Hans a five-year loan of Rs 275 crore. “We hope the ONGC infusion will take place by the end of the current financial year,” says Subir Das, general manager of the western region at Pawan Hans.
Furthermore, India’s largest power generator, NTPC, has also agreed to extend loans worth Rs 55 crore. NTPC wants to increase helicopters services to expedite its mining ventures in remote areas and pit-head coal-based power projects.
“Pawan Hans provides support services to the oil sector and tourism in particular. The objective is to increase the company’s presence in other sectors, especially when there are untapped opportunities. Our total fleet acquisition plan will cost Rs 500 crore. Fifteen helicopters will be added, of that seven have already been delivered,” explains Tyagi.
Moreover, Tyagi says Pawan Hans will also tap internal resources to generate Rs 150 crore to facilitate fleet expansion. The government will separately infuse Rs 14 crore into Pawan Hans. He, however, clarifies that there is no plan for disinvestment or IPO for Pawan Hans.
The company has also ventured into the operation and maintenance of heliports in metros and other parts of the country, seaplane operations, search & rescue, fixed-wing operations, and operation & maintenance of various types of helicopters such as the Dhruv ALH. Pawan Hans is also exploring the possibility of launching intra-city airport connectivity by helicopter and medical evacuation. “We have already signed an MoU with the government of Gujarat to connect important tourist and pilgrim places by helicopter.
Pawan Hans has plans to diversify its operations to Himachal Pradesh, southern India and Goa, he adds. Besides, the company is setting up maintenance, repair, and operations facilities at Mumbai for the Dauphin series of helicopters. “We are also holding discussion with other helicopter manufacturers to help set up MRO facilities for other types of helicopters,” Tyagi informs.
The company’s ventures also include an agreement with Indiapost — the department of posts — to provide complete logistics solutions. The MoU, which was signed in December 2009, would be in place for two years. “The MoU has been signed initially for a period of 2 years, which is renewable on mutually acceptable terms and conditions for support within India and will be open for international logistics solutions also, depending upon performance,” Tyagi explains.
Similarly, the company, which has launched heli-pilgrimage services, plans to make its flights affordable and convenient to attract more passengers. Pawan Hans has deployed helicopters for major pilgrimage sites, including Mata Vaishno Devi Shrine and the Kedarnath shrine. “As the company is able to establish its mark on heli-pilgrimage, we have slashed the prices at Vaishno Devi and Kedarnath, so that more and more customers can avail of our services,” Tyagi says.
