The Hindu Business Line : Advanced light copter may cost less

HINDUSTAN Aeronautics is trying to bring down the cost of its star product, the Advanced Light Helicopter (ALH), as it tries to breach the tough international market.

HAL has so far produced 31 ALHs, named `Dhruv,' mainly for the armed forces and the Coast Guard. "But the customers are not happy with the cost and it is important that we bring down the cost" significantly to make it competitive, HAL CMD, Mr N.R. Mohanty, said in a candid appeal to his divisions on Monday.

With sales turnover for 2003-04 crossing Rs 3,600 crore, HAL is eyeing the $1-billion (about Rs 4,300 crore) turnover mark for the year 2004-05 and is on a focussed export thrust, now worth Rs 200 crore-plus. At present, the imported material cost makes for up to 65 per cent of the product, and presented a challenge for the defence research labs, private companies and academic institutions to see how the imports could be substituted by indigenisation and make the product more saleable, Mr Mohanty said, during a divisional awards ceremony at the Helicopter Division here.

After HAL took up the production of the main rotor blades itself, its cost came down from Rs 1.8 crore to Rs 1 crore per piece. Mr Mohanty would not put a figure to the cost-level, but in his estimate, indigenisation in general could lower production costs by up to 45 per cent. A major substitution would be when HAL acquires the technology for the Shakti engine, which it is jointly making with Turbomeca.

With two Dhruvs sold to Nepal last year at Rs 42 crore each and one export order bagged from Israel, HAL expects an order from Chile to be clinched in June-July. He said, "There is a good export demand for the ALH." Designed and developed fully by HAL, the multi-role `Dhruv' entered service in March 2002 and was the proud showpiece at the 2003 Aero India show. HAL has also got it certified for civilian purposes and is trying to market it to the States for VIP, medical emergency and disaster time transport purposes.

Mr Mohanty said that the 14-seater ALH was the best in the 5-5.5 tonne category and was priced competitively. Now that HAL had moved from licensed manufacturing for foreign partners, where it had little say over costs, into making and marketing its own products such as the LCA, the intermediate jet trainer, the light combat helicopter and soon the advanced jet trainer, it was time to look at overall reduction in production costs. For this, it was putting in place a Lean Production Initiative across its divisions and introducing `zero tolerance' for wastage.

The company also expected the Armed Forces contract for 42 ALHs to go for approval before the new Cabinet, he said.

More Stories on : Airlines | Security | Science & Technology

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IA starts inquiry on missing gold

Advanced light copter may cost less

Great Eastern to increase dry bulk operations

Protection without protectionism...

SKS in talks with Danish major for dry-dock project

Well-known chains to set up more food plazas at railway stations

Time slots for buses make journey safer