Aviation growth may be a new phenomenon in India, but the country's major aircraft manufacturer, Hindustan Aeronautics (HAL), can trace its roots back beyond its formation in 1962 to 1940 and the original Hindustan Aircraft, writes Helen Massy-Beresford.
Today HAL focuses on the defence, coastguard and border control sectors with key products including the Dhruv advanced light helicopter, Tejas light combat aircraft and Sitara intermediate jet trainer.
Moving up one place to number 43 in this year's Top 100 ranking by revenue, and with an improved operating margin of 18.6%, allowing HAL to claim the number five slot in the ranking by operating margin, the company is poised for future success, says chairman Ashok Baweja, and is actively addressing future markets through ambitious projects in key growth areas. HAL's revenues grew from $1 billion to $1.2 billion in 2005 and the company posted an order book worth $4.5 billion as of March last year.
HAL is hoping to break into the unmanned air vehicle market, targeting naval applications in particular, by taking an existing platform, adapting it for automatic take-off and landing and adding some systems to create a 2.5-3t vehicle that would support the Indian navy. "We're looking for a suitable partner," says Baweja.
Meanwhile, the manufacturer is making progress on its most important existing projects - Baweja expects 50 more deliveries to the Indian armed forces this year and 40 next year for the Dhruv, to add to the current total of 72. And he insists progress is being made on the long-awaited Tejas.
"The programme is starting to gain momentum," Baweja says. He adds that with two more prototypes being added this year, and three next year, HAL should have a total of eight to nine machines by the end of 2007. "We're starting to expand the flight envelope. The certification must be done by 2008 so that we can comply with contracted deliveries in 2009. We've restructured the whole process of managing the programme - now the focus is shifting to production and we're pushing the programme forward."
A large part of HAL's business is producing aircraft under licence. Baweja predicts that the first Indian-produced BAE Systems Hawk will be delivered in March 2008. International co-operation is important in HAL's strategy: it has three overseas joint ventures in place - BAeHAL Software with BAE Systems, Indo-Russian Aviation (IRAL) and Snecma HAL Aerospace.
Baweja is confident about prospects for the 60t multirole transport aircraft the manufacturer is developing through its Russian partnership. "The issue is that both companies must have an adequate commitment. We have interacted with the Russians for years. All the homework has now been done - hopefully we should be able to make an announcement in the next few months," he says. HAL sees a market for 45 of the aircraft in Russia, as well as a further 100 in India.
Further international partnerships are on the cards for the Bangalore-based manufacturer, which posted an order backlog of $4.5 billion as of March last year.
In particular the company is looking to team up with another manufacturer to develop a 10t multirole helicopter. Several potential partners - including AgustaWestland, Eurocopter, Kazan and Sikorsky - are being considered and, while a decision has not yet been taken he says: "We have to look for an optimum partner and Eurocopter is certainly very much there."
And Baweja believes that his company has more international collaboration to look forward to: "Because of changes in the world India and the USA are looking forward to a very positive interaction."
India is a new growth market for the aerospace industry, and a crucial target for many Western manufacturers. From his position at the helm of one of the country's key players, Baweja is confident about the future of his company.
"There's a nice feeling that the aviation sector is overflowing," he says.
Source: Flight International
