VLADIMIR KARNOZOV / MOSCOW
Development presentation part of preparations for company's proposed IPO on Moscow stock exchange next year.
Russia's second largest aerospace corporation NPK Irkut has presented its development strategy for 2004-13 as part of preparations for its planned initial public offering (IPO) on the Moscow stock exchange in March next year.
Irkut, which has 22,000 staff and is the first Russian Defence Company to use US accounting standards, plans to increase its annual revenues from $528 million last year to $1.6 billion in 2013. Revenues are expected to come in at $522 million this year and $816 million in 2004 under secured orders for Sukhoi Su-30MKI/MKM series fighters and Beriev Be-200 amphibious aircraft.
Indian air force purchases of Su-30MKIs will remain the cornerstone of Irkut's income over the next few years. With the recent Malaysian order for similar Su-30MKMs, the orderbook for the fighters is worth $4.2 billion, says Irkut president Aleksei Fiodorov.
The Indo-Russian Multirole Transport Aircraft is meanwhile being jointly developed by Hindustan Aeronautics, Irkut and Ilyushin, and is expected to attract Indian and Russian orders worth $4 billion. After absorbing the Yakovlev design house, Irkut will enter the combat trainer and lightweight attack aircraft market, with the Yakovlev Yak-130 already selected by the Russian air force and being evaluated by India.
Upgrades of in-service Aero Vodochody L-39 trainers, Ilyushin aircraft, Mil Mi-8/24 series helicopters, and Sukhoi and MiG fighters by Irkut subsidiary Russian Avionics are expected to generate $2-2.5 billion over the next decade.
The Be-200 amphibious twinjet is central to plans to raise the share of civil production at Irkut from the current 10% to 45% by 2010. The Be-200 so far has one $150 million order for seven airframes from Russia's ministry for emergencies, with deliveries due in 2003-5. A joint assessment with EADS forecasts a market for 320 aircraft worth $7-7.5 billion.
"The Be-200 is a niche product. Each sale will not be counted in hundreds of units, but the $7 billion market is worth fighting for," Fiodorov says.
In October, Irkut and Yakovlev shareholders signed a letter of intent to execute their previously announced merger plan. Irkut will buy 75.5% of Yakovlev for $45 million, using cash raised by the IPO. The deal will be signed in February 2004 and completed in April.
Moscow MDM-Bank has been selected to manage the IPO for which it will act as underwriter. The IPO's at two major Russian exchanges are expected to precede a listing on London's Alternative Investment Market.
Source: Flight International
