The Hindu Business Line : HAL eyes tie-ups with global aviation majors

Hindustan Aeronautics Ltd is embarking on new partnerships with global aviation majors for military and civil projects with an eye on trebling the turnover to $3 billion by 2011, according to its Chairman, Mr Ashok K. Baweja.

The defence PSU expects to cross the Rs 7,000-cr mark this year. For 2005-06, it posted a turnover of Rs 5,375 crore at a growth rate of over 18 per cent.

Currently, the aircraft major is the object of interest of many global aircraft and aero engine majors such as Lockheed Martin, Boeing, Airbus, Bell, Eurocopter, Pratt & Whitney, for sourcing and manufacturing tie-ups, Mr Baweja told a news conference on Wednesday.

"With an order book of Rs 28,000 crore and a robust financial health, the company is poised to leap to a turnover of over $3 billion (about Rs 13,300 crore) in the next five years."

"India is today an exciting place for world aviation majors who are looking at HAL as a partner. There are large offset opportunities in military and civil projects. Indian aviation is (set for) the same boom as IT and pharma sectors," he said.

The current orders for mainly Sukhoi, Jaguar, LCA fighters and the indigenous intermediate jet trainer should last for the next 3-4 years.

MRO unit

While HAL would continue its core business of defence fleet maintenance, it is looking at entering civil aircraft MRO activities with Airbus and its MRO associates from 2008.

This would be from the existing airport at Bangalore, which would be replaced by the new one coming up at Devanahalli.

"We are in a fairly involved stage on the MRO. The picture would be clearer in the next 1-2 months," Mr Baweja said.

Venture with P&W

In its first venture with Canadian major Pratt & Whitney, HAL would invest Rs 100 crore to set up an engine components manufacturing facility at its Koraput division.

The facility would begin in a year or two and the tooling process has begun.

P&W would provide the technical support - including training and quality audit of the facilities. This foray should generate an annual business of $50 million (around Rs 200 crore) for HAL over the next 10 years. The company has also been contracted to supply the fuselages for G150 eight-seater business jets made by the US-based Gulfstream Aerospace Corp.

Dhruv plans

HAL is speeding up the supply of its order for 200 `Dhruv' advanced light helicopters for the Armed Forces.

The indigenous Dhruv with a new glass cockpit makeover is expected to get certified by February while a high-altitude variant with a new engine would be out next year. Currently, 70 of these helicopters are in service, including with ONGC and other civil agencies.

$ 700-m MRTA PLAN

HAL and its Russian partners are about to seal a fresh $700-million plan for a 60-tonne multi-role military transport aircraft (MRTA).

HAL will hold 50 per cent stake in the proposed partnership with Russian aircraft consortium Irkut Corporation and the Ilyushin Design Bureau.

This project could evolve into a 100-seater project. The work share arrangement would be finalised in a month's time, Mr Baweja said.