HAL deals to open new doors for local players in outsourcing

Our Bureau

Bangalore, Oct. 29

HINDUSTAN Aeronautics Ltd's mega deals with BAe Systems, Boeing, Airbus and Bell Helicopters have an outsourcing bonanza worth at least Rs 400 crore waiting for the budding private aerospace sector, according to its top officials.

HAL in recent years has taken up over half a dozen major projects for overseas civil and domestic military agencies. Among them are the Hawk advanced trainers to be licence-produced with BAe, its own advanced light helicopter and intermediate jet trainer, besides doors, locks and blade works sub-contracted by Boeing, Airbus and Bell.

The indigenisation would also reduce a fat import bill on the many components that are currently imported.

The defence PSU plans to outsource at least 25 per cent of the works to domestic SMEs registered with it; and its private vendor database now stands at 500 SMEs and the companies are being evaluated and grouped, according to Mr Sujit Pant, Executive Director, HAL Aircraft Division. For Hawk alone, the volume of works could amount to Rs 100 crore, he said at a two-day seminar on outsourcing.

In addition, there are the 30 per cent offset works anticipated out of the Rs 100,000-crore aircraft acquisition programmes of IA, AI and private airlines, besides the multi-nation transport aircraft plan that HAL has ventured into and the DRDO's pilotless target aircraft Lakshya, according to Mr Pant.

Mr A.K. Saxena, HAL's officiating Chairman and Managing Director of the Bangalore Complex, said the current extent of outsourcing was well below the 90 per cent share that global majors kept for their sub-contractors.

HAL was gearing the private sector up to meet global quality and delivery standards; it offered it both in-house exposure at its facilities and put its own experts to guide them on-site.

According to Mr Saxena, the engine technology that is being developed in tie-up with French major Safran (formerly Snecma) would open up new opportunities as engine components are labour intensive.

Engine manufacturers should also offer offsets to allow local players into the space, he suggested.

"We are talking of long-term partnerships and management support of at least 25 years. But this is not for those looking for quick returns or easy solutions," said Mr P. Soundara Rajan, AGM (Integrated Materials Management), and Mr H.R.S. Prasad, AGM, ARDC, HAL.

The seminar was organised by the SIATI (Society of Indian Aerospace Technologies & Industries), which is trying to build a private aerospace enterprise catering to global programmes.