Post on 21-Jan-2016
Presentationto
Hi Tech Defence Innovation Forum
Agenda
HAL - Indian Defence Preparedness Challenges for India Inc HAL & National Initiatives India and Civil Aerospace Avenues for Development IDSA– Pondering Points
Hindustan Aeronautics Limited
India’s Flagship National Aerospace Company
Largest Defence Public Sector Company
Record sales of Rs 14316 Crs
19 Production and 10 R&D Centers
Work Force – 33000 +
Exports to over 20 countries
Lucknow
Korwa
Kanpur
Hyderabad
Bangalore
Barrackpore
Nasik
Koraput
*
**
*
***
*
*Kasargod
HAL – Learning Organisation
Creativity & Innovation are keys to our business continuity
Filed 174 patents in last one year
R&D Expenditure of Rs 1750 Crs (12.2%)
In house Design & Development of 15 platforms
Current In House Design & Development
Current Co Development
HAL – Enabling India
All satellite structures launched by ISRO till date
Designed & Developed first airworthy Turbo Jet Engine in India (PTAE-7)
Has supplied structures for nation’s Mars Orbiter Mission
IAF Indian Navy Indian Army
Helicopters; 100%
Fighte
r Airc
raft
Trainer A
ircra
ft
Helicopte
rs
Transp
ort Airc
raft
81%87%
41% 41%
Trainer Aircraft
Transport Aircraft
Helicopters
100%
49%61%
1
2
18
73
Eastern Zone 94
2
22
493
7
2
Western Zone 526
4141
12
2
77
Northern Zone 173
3341119
15151 Southern Zone 1619
Overall Vendor Base2412
HAL & Aerospace Ecosystem Development
Kerala
Value of indigenous sourcing ~ 1195 Crs
R&D INVESTMENT AS % OF TURNOVER
3.3%
3.3%
3.3%
3.3%
3.3%
3.3%
7.5%
0.1%
0.3%
0.3%
2.6%
2.8%
0% 2% 4% 6% 8% 10%
HAL
Tata Power
L&T
Bharat Forge
Ashok Leyland
M&M
US A&D Average HAL Vs Private A&D Industries
Domestic A&D – R&D Efforts
Source : Company information & Annual reports 2010-11 available on web-sites, US average pertains to for US A&D majors
R&D INVESTMENT AS % OF TURNOVER
3.3%
3.3%
3.3%
3.3%
0.7%
2.6%
7.0%
7.5%
0% 2% 4% 6% 8% 10%
MIDHANI
BEML
BEL
HAL
US A&D Average HAL Vs Other DPSUs
HAL is the biggest investor in R&D efforts amongst DPSUs as well as major Private
Indian Industries entering defence sectors
“Challenges for India Inc”
Three Major Challenges
Economic
External Security
Internal Security
Challenges for India Inc
INDIA : “Striking a Fine Balance?”
Economic Paradox India is the second most populous Country in the world, but Ranks a distant 134th on Human Development Index
India has the second largest workforce in the world, yet in terms of Exports (percentage of GDP) secures 100th place
India ranks 6th in the world in terms of Patent Applications, but comes a distant 55th in terms of high technology Exports
India has the 9th place in the world for its 17 Nuclear Power Reactor Units, yet 35% of its population has no access to electricity 29.8 % of
its population lives below poverty line
External Security Challenges
25 of the 60 states, at highest risk of failure are located in Asia
Indian borders – 7,000 km of coast and 15,000 km of land border
Indian Republic is in an increasingly insecure security environment with threats from all around.
Source: http://www.fundforpeace.org/global/library/cfsir1210-failedstatesindex2012-06p.pdf
“HAL and National A&D Initiatives”
Govt constituted BK Chaturvedi committee for strengthening HAL’s contribution to the country
HAL to gradually shift its role as system integrator
HAL to strive for outsourcing 50% of total workload in terms of SMH
HAL to focus on R&D / Development of Composites materials
Investments in aviation metallurgy – Working with MIDHANI
Design and Development of 25 kN Thrust class Engine
HAL to pursue the business of UAVs
BK Chaturvedi Report
Acquisition of companies abroad for technologies through
Empowered Committee of Secretaries
Setting up of National Aeronautics Commission
Modernisation / Capacity Augmentation
HAL to establish aeronautics university or collaborate with some
universities for expansion of aviation sector capabilities
BK Chaturvedi Report
Light Combat Aircraft - Tejas
Completed more than 2290 flights15 (7 LSP, 6 PT, 2 TD) ADA commitment for IOC – Nov ‘13 HAL geared up for production post certification
* CSIO * TBRL
CHANDIGARH
* SAG * DESIDOC * IAF* IIT * SSPL * NPL* DSC
DELHI
* OF-Ambajhari * Firth India
NAGPUR
* DL
JODHPUR
* NID
AHMEDABAD* IPCL * MS university * GSFC
BARODA
* HAL * Polymer ent.
NASIK
* ADRDE
AGRA
* DEAL * IRDE
DEHRADUN
* HAL * RDSO* RCMA
LUCKNOW
* CSDO * HAL * MARS Auto* DMSRDE * IIT
KANPUR
* HAL
KORWA
* BHU
VARANASI
* Calcutta university * Jadhavpur university* UBEST
KOLKATA
* IIT
KHARAGPUR
* NALCOBHUBANESHWAR
* HAL
KORAPUT
* NSTL * BHPV
VISAKHAPATNAM
* CVRDE * ARC * IGCAR * IIR * HVF * SAMEER * SERC * VIVASONIC * Centre for reliabiilty
CHENNAI* HAL * BHEL * ANURAG* CMFI * CCE (R&D) * DLRL * DMRL * CV * MCEME * DRDL * ECIL * Midhani * MTAR * NFL * OF-Medak * OMC * Osmania. * IICT
university* BH * NFC * NFMDC * RCI * RCMA * CPDC * KOBASHI * Praga * ARCI
tools* Vision Labs * DoAC-ASL
HYDERABAD
* BHEL* High Energy Batteries
TRICHY
* CECRIKARAIKUDI
* PSG COIMBATORE
* Cochin university* INDAL * NPOL
COCHIN
* VSSC * ER&DC * KELTEC
THIRUVANANTHAPURAM
* ADA * HAL * ADE * DARE * ALISDA * CAIR * CASSA * CMTI * CEMILAC * CABS* DEBEL * GTRE * HMT * CSM(P)Ltd * IRIS* LRDE * IAM * IAF * DG-AQA * IISc* Jindal * MTRDC * NAL * Kumaran * BEL * MUSA * RVCE * TCE * WIPRO * WIDIA* TCS * BHEL * GTTC * ASML * Accord * Dynamatic hyd. * Transtec-India * Turbotech* Software engg(P) Ltd * Southern electronics* AMADA Tools * Spectrum
BANGALORE
MUMBAI* BARC * IBP * IIT * NCML* SAMEER * L&T * NCST * TIFR* SASMIRA * OF-Ambarnath
* HEMRL * ARDE * IAT * R&DE(E) * NCL * AID* RDE * TRDC
PUNE
* NML
JAMSHEDPUR
* IIT
Guwahati
* VAISESHIKA
AMBALA
LCA – A National Effort
Super Plastic Forming
Robotic Riveting
Thermo Plastic Composite
Canopy Fragilisation Circuit
NC Loom manufacturing
MMRCA
Titanium Alloy Super plastic Forming
Microwave & digital jamming controller
EW Suite
AESA Radar
Radio Crystallography
Co-Cured Composite
Stiffened Parts
FADEC
70+ French OEMs
20+ Indian Production
Agencies
Accessories
ToT &Supplies
ToT &
Supplies
Su
pp
lies
ToT &Supplies
ToT &
Supplies
ToT & Supplies
ToT &
Supplies
MMRCA Supply Chain Challenges
Supplies
Good Example of Public Private Cooperation IPR s stay within country
Aerospace Structural Incoherence
India started off early in Aerospace(1940) Indian Space and atomic programme started 2 decades later Need for Opinion synergy and cohesion Pointed out by many committees – Recent is BK Chaturvedi commiittee
• Quote “To consolidate capabilities in design & development (D&D), a Design, Development and Technology Management Governing Council chaired by Raksha Mantri may be set up. This may provide major policy directions. The Governing Council may be supported by a Design & Development Management Board and the entire pool of D&D personnel should be placed at the disposal of the Board. The Board may be chaired by Director, D&D, HAL and include representatives from CSIR and DRDO.”Unquote
• Quote “Pooling of R&D Resources: Conceptual frame work of existing aviation R&D organisation in India needs to be revisited. The Design organizations involved in the field of aeronautics should be brought under one roof while retaining their administrative autonomy.” Unquote
• Quote “If India wishes to be a global player in this field, there is a need to set up an Aeronautics Commission. …….All the institutions in the Military and Civil Aviation sectors could be brought under the umbrella of this Commission.” Unquote
“India & Civil Aerospace”
Civil Aerospace in India
CAGR of 14% - Last 10 years
Air Traffic to Double by 5 to 7 Years Period
Passenger Volume - 2020 ~ 35 Crore
1032 new aircraft ~ Rs 75900 Crores by 2028 would be inducted by Indian Aviation Industry *
By 2020
India will be the 3rd largest aviation market in the world
Some Facts ……
* Study By CAPA, 2012
National Priority : Having flagship Civil ProductEconomies survive on Civil Business – Brazil, USA,
Europe
NCAD & HAL
Planning Commission mandate – HAL to be the nodal agency
NMCC identified as the program coordinator
Envisaged over Rs 7500 Cr project
Design – Rs 4325 Crs Production – Rs 3200 Crs
Quote from BKC Committee Report
Quote “National champions in Europe have become part of European Aeronautics Defence and Space (EADS.) Both the global leaders, Boeing and EADS are in both the civilian and military spheres as there are synergies. India’s capabilities in the field of Aeronautics have been created in HAL. These can easily be used for diversification in the civilian segment. It is suggested that as the proven Indian entity with the necessary wherewithal, HAL should spearhead the Aviation Business instead of creating several players in an industry which is technologically complex and is highly capital intensive. HAL has the resources to attempt this.” Unquote
Civil MRO Landscape in India
India will be the fastest growing country for air travel in next 10 years
Current Share of India in world MRO Market is 1 % of 41.8 BUSD
Total commercial fleet size is in excess of 430, expected to double in next 5-7 years
MRO is the third largest component(~15%) of the operating cost of an airline
Indian MRO Market is projected to balloon up to 2.6 BUSD by 2020 growing 10% per annum
“Advantage India” Low Labor Cost (35$ per man hour in India vs. $ 60 in South
East Asia & even more in Middle East and Europe)
Availability of technical talent to be trained and employed, More than 55 Aircraft Maintenance Training Schools
Geographical Advantage (Between Europe and Asia Pacific)
Untapped Demand , total Outgoing MRO Business is 0.7 BUSD per year
100 % FDI in MRO Business
Civil MRO Landscape in India
HAL and Aircraft MRO
Huge Infrastructure for Military MRO
Established Quality Systems and Logistical framework
Dedicated Overhaul and Accessories Divisions
Experienced work force with necessary skill set
Two operational Airports (Proprietary) at Nasik and Bangalore while its Accessories Division at Lucknow is close to Amausi Airport
To Sum it up...
India as well as HAL at a unique vantage point for Civil Aircraft MRO.
“Avenues for Capabiliy Development”
19 contracts signed since 2007 worth 14.93 BUSD*
Leads to $ 4.479 billion as offsets(~ 20,000 crore)
100 BUSD contracting in next 5 to 7 years
Approximately 1,00,000 Crore
Our focus as a country to offset should be on Relevant Technology Capability development Performance Driven
Lessons from other countries Turkey South Korea Saudi Arabia Brazil
*Figure indicates the likely value of offsets and not the liquidated value of offset
India – Offset Scenario
• India as a country needs to develop capability in field of Aero Engines• Requirement of Engines - Formidable cash outflow & long term dependency• HAL , AERDC - First flying jet engine in country & initiated development for 20 kN engine
Indian Aero Engine Scenario
Overall Outflow of approximately Rs 2,38,000+ Crores (More than Indian defence budget allocation for 2012-13)
HAL - First flight worthy jet engine in country & initiated development for 20 kN engine with internal funding
Requires a serious national effort & National Funding for Development
Indian Aero Engine Scenario
SNo. Manufacturing Projects
01 RD-33 (MiG-29)02 AL-31FP (Su-30MKI)03 AL-55I (IJT)04 Shakti Engine (ALH/ LCH/ LUH)
05 F 414 INS6 (LCA)06 F 125 IN (Jaguar Upgrade)07 Adour Mk 871 (Hawk)08 M 88-2 E4(MMRCA)09 117 -S (FGFA )10 AMCA Engine11 Kaveri (Dry)- UCAV12 IMRH Engine13 APU; Starters; STFE
BKC Committee RecommendationQuote “An important need would be to develop
aero engines, design & development and production to be managed by one
organization,..........”Unquote
IDSA – Pondering Points
National ConsensusNational Aerospace Accountability CenterCivil Aircraft Development should be a national priority
Introspection Points
Collaboration vs Competition ?
Synergy vs Redundancy ?
Short Term Gains vs Capability Building ?
Profit maximization vs Self Reliance ?
Neither Public Sector alone nor private sector will achieve the goal of Indian Self Reliance
Together WE CAN and WE WILL ACHIEVE IT
Jai Hind