Hal Directly

7/29/2019 Hal Directly

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INDUSTRY PROFILE

Global aerospace industry enjoys high growth as military expenditures continue to

rise and emerging economies take the lead in the civil aviation industry. While dominantplayers are based in Western Europe and the US, Asia Pacific, including India is set to gainfrom outsourcing of manufacturing as well as MRO activity.

The global aerospace industry has come a long way since the first flight wasundertaken in 1903; market size of commercial and defence aircraft was estimated at US$ 97billion in 2007.Defence sales account for more than 80% of the total market typicallydominated by the Government and public sector, while the growing private sector civilaviation has led to a broad-based expansion of the industry across the world. In addition thereis sizeable MRO activity -Maintenance, Repair and Overhaul -- which is a major componentof operating aircraft. On an average, the aerospace industry spends more annually on MRO

than on manufacturing or development.

The global aerospace market has five main components, each with distinct marketstructures and drivers military aircraft and light combat aircraft make up the bulk of themarket, while jets and helicopters account for less than 20% share. In the past decade,military expenditure has been rising with the international war on terrorism, while civil traffichas seen a spurt due to robust economic growth, rising incomes, globalisation and falling airfares.

Though the recession in 2008 in advanced countries has been a setback for the civilsector, emerging economies have taken charge of leading global growth by recovering faster

China, India and the Middle East are the most promising drivers of the civil aviationmarket. According to research by Boeing, the fastest growing economies in Asia will leadchange in the market space, with Asia-Pacific set to be the largest air transport market in theworld with 45% share of air travel. Commercial airplane market is estimated to be a huge $3.2 trillion by 2027, with Asia-Pacific accounting for 37% of the total market.

Moreover, while presently the industry is dominated by US and EU based companies,there has been an increasing trend in outsourcing as firms look out for low costmanufacturing locations. MRO outsourcing is set to rise from 52% in 2006 to 65% by 2016.Here again, the Asia-Pacific is set to gain with its efficiency, expertise and labour costadvantages. Demand for military aircraft is also on the rise, with increased militaryexpenditure across the world.

Prominent Global Companies:Boeing USAEADS NetherlandsLockheed Martin USANorthrop Grumman USABAE Systems UKGeneral DynamicsRaytheon

United TechnologiesGeneral Electric


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Finmeccanica

Among the largest users of aerospace technology are the Department of Defense(USA), National Aeronautics and Space Administration (NASA), European Space Agency(ESA), Ariane France and others.

The Indian Scenario

The Indian aerospace industry is one of the fastest growing aerospace markets in theworld. With a long history spanning six decades, the country has an excellent pool ofresources matching global standards. Indias liberalised economy offers sound opportunitiesfor international companies look to outsource manufacturing and MRO activities. Globally,Indias position in civil aviation improved from tenth to ninth position in 2007. Air traffic hasbeen growing at almost 25% annually.The country has been upgrading its airports tointernational standards, catering to heavier cargo and passenger traffic.It is in the spaceindustry that India has made even more significant strides it is one of the six countries in

the world that undertakes space launches with commendable work put in by Indian SpaceResearch Organisation (ISRO) through its commercial arm, Antrix.

Private airlines now account for 75% of domestic aerospace market. Opening up theskies led to a boom in air traffic, both passenger and freight, which was reversed in 2008 withthe global slowdown. However, as the graph below shows, recovery has begun and theaviation sector is set to continue on its high growth trajectory.

Going ahead, growth in air traffic is expected to outperform the global average till2025. In military aviation, India is expected to spend about $35 billion over the next 20 yearsas it replaces its existing fleet. Indian MRO segment has been growing at 11 percent and has

not been affected significantly by the slowdown. This market is expected to grow at anaverage of 10% and reach $ 2.6 billion by 2020.

The Government recognises the need for massive investment to meet these growing needs:

The Ministry of Civil Aviation estimates investment of$ 200-300 billion over the next 25years, till 2034.

The Airports Authority of India has planned investment of$ 3.04 billion to upgrade airportsacross the country, even as the sector is open for public-private partnerships (PPPs).

According to Boeing, India needs 856 airplanes worth $ 72.6 billion over the next 20 yearsto meet the surging demand.

Investments in the Indian Space Programme to the tune of Rs. 39,750 crores during theperiod 2007-2012, under the Governments Planning Commission programmes. Policyinitiatives: The Indian Government has liberalised the framework for operating in theaerospace industry considerably:

Manufacturing and R&D activity is allowed 100% Foreign Direct Investment on automaticroute in all areas, except air traffic services.


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While 100% domestic private investment is allowed in the defence sector, there is a limit of26% FDI in the manufacture of defence equipment, which is also subject to licensingrequirements.

100% FDI permitted under automatic route for MRO, flying training institutes and technical

training institutes.

100% tax exemption for airport projects for a period of 10 years.

Defence Offset Policy, effective from September 2008 has a mandatory offset requirementof a minimum of 30% for procurement of defence equipment in excess of Rs. 3 billion, onlydirect offsets are allowed, banking of direct offset credits permitted for up to two years,transfer of technology not counted towards offset calculation and vendor is free to chooseIndian offset partner.

Tax incentives are given for investing in Special Economic Zones.

Karnataka state scenario

Karnataka produces more than a quarter of Indias aircraft and spacecraft, it is thebase for all global players in this industry. Excellent support from the government has comethrough in the form of centres, including Hindustan Aeronautics Limited (HAL), NationalAerospace Laboratories (NAL), Aeronautical Development Agency (ADA) and Gas TurbineResearch Establishment (GTRE). The State continues to draw huge investments in thisSector as it gears up to meet the rising global demand.

The history and background of Indias aerospace industry owes much to the state ofKarnataka; home to Indias aerospace industry, the state is all set to reap dividends of thepotential in this sector. Starting from 1940, when Indias first private aircraft factoryHindustan Aircraft Ltd. began its operations in Bangalore, the state has created a conduciveenvironment that has nurtured the growth of the aerospace industry. The hub ofmanufacturing, research and development, the state produces more than a quarter of thecountrys aircraft and spacecraft.

HAL, has 19 production units and 9 research and development centres in 7 locationsacross India, of which, 8 production units and 4 R&D centres are located in Bangalore.Ranked 40th in Flight International's list of the Worlds Top 100 aerospace companies in

2008, HAL has a total turnover of Rs. 10,400 crore. It has manufactured 12 types of aircraftwith in-house R&D and 14 types under licence. While it has built more than 3,550 aircraftand 3,600 engines, over 8150 aircraft and 27,300 engines have been overhauled at itsfacilities.

Bharat Electronics Ltd. is another public sector firm working in this industry, whichhas entered into MOUs with international companies like Lockheed Martin, Boeing, EADsetc.

NAL was set up in 1959 under CSIR in Bangalore. The aeronautical lab consolidatedits position as a major player with the approval of Indias Light Combat Aircraft project in


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1983.NAL, the only civilian aerospace laboratory in the country, is a leader in civil aviationdesign.

Though in the public sector, these aerospace centres have grown in stature, registeringinternational standards of technical excellence and capabilities. They work with many firms

in the private sector to raise technological skills, technical and managerial processes etc.Private sector suppliers to the defence sector and the public sector firms were exposed to highstandards, raising their capabilities as well. While industrial liberalisation has been underwaysince 1991, reforms have been gradually spreading through to all sectors and the defencesector was opened to the private sector in 2001. For instance, Air Works India EngineeringPrivate Ltd, established in 1951, became the first DGCA-approved independent Airline MROin November 2008 for its facility near Bangalore.

Private firms registering a major presence in the industry include:

QuEST Global, the engineering company, set up base in Bangalore in 1998 and

moved into the aerospace manufacturing in 2006, having entered into a 10-year strategicrelationship with Magellan Aerospace. In 2007, the firm set up the countrys first specialprocessing facility for aerospace manufacturing, delivered the first set of A-380 componentsto SABCA and achieved Airbus and AS 9100 certification. The very next year, it became thefirst Indian private sector player qualified to offer end-to-end solutions to EuropeanAeronautic Defence and Space Company N.V. (EADS), and set up a dedicated sheet metalfabrication facility for aerospace.

In 2009, QuEST established Indias first aerospace SEZ in Belgaum, 300 acresdedicated to offering an aerospace customer allfrom design to manufacture of componentsand systems in one place. QuEST Global has a manufacturing facility in Bangalore thatdoes precision machining. Capabilities have been enhanced in the Belgaum SEZ to includeadditional precision machining capabilities, sheet metal work, and aerospace specialprocessing (through a JV with Magellan Aerospace).

The company has signed MoUs with 3 major players in the aerospace manufacturing space:

SABCA, Belgium: Airbus A-350XWB Flap track mechanism metallic parts manufacturingand assembly work from SABCA

Magellan Aerospace: to evaluate setting up an aero-engine focused manufacturing facility

with annual revenues of $50m

Farinia SA: MOU to evaluate the establishing of an aerospace forging facility


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COMPANY PROFILE

Hindustan Aeronautics Limited (HAL) based in Bangalore, India, is one ofAsia's

largest aerospace companies. Under the management of the Indian Ministry of Defence, thispublic sector company is mainly involved in aerospace industry, which includesmanufacturing and assembling aircraft, navigation and related communication equipment, aswell as operating airports. HAL built the first military aircraft in South Asia and is currentlyinvolved in the design, fabrication and assembly ofaircraft, jet engines, helicopters and theircomponents and spares. It has several facilities throughout India including Nasik, Korwa,Kanpur, Koraput,Lucknow, and Hyderabad. The German engineer Kurt Tankdesigned theHF-24 Marut fighter-bomber, the first fighter aircraft made in India.

HISTORY OF THE COMPANY

Hindustan Aeronautics has a long history of collaboration with several otherinternational and domestic aerospace agencies such as the Airbus Industries, Boeing, SukhoiAviation Corporation, Israel Aircraft Industries, RSK MiG, BAE Systems, Rolls-Royce plc,Dassault Aviation, Dornier Flugzeugwerke, Aeronautical Development Agency and IndianSpace Research Organisation.

HAL was established as Hindustan Aircraft in Bangalore in 1940 by WalchandHirachand to produce military aircraft for the Royal Indian Air Force. The initiative wasactively encouraged by the Kingdom of Mysore, especially by the Diwan, Sir Mirza Ismail.The British Government bought a one-third stake in the company by April 1941 as it believedthis to be a strategic imperative. Later in April 1942, it bought out the stakes of WalchandHirachand himself and other promoters so that it can act freely. The decision by UnitedKingdom was primairly motivated to boost British military hardware supplies in Asia tocounter the increasing threat posed by Imperial Japan during Second World War. However,the Mysore Kingdom refused to sell its stake in the company but yielded the managementcontrol over to the British Government. Thus, within 2 years of establishment, it wasnationalized.

Hindustan Aeronautics Limited (HAL) came into existence on 1st October

1964. HAL was set up as a amalgamation of Hindustan Aircraft Limited along with

Aeronautics India Limited and Aircraft Manufacturing Depot located in Kanpur, India.

Hindustan Aeronautics Limited has it headquarter located at Bangalore, India. HAL is one ofthe largest aerospace company which is run by the Ministry of Defense. The principal

activities of HAL involve manufacturing aircraft, aerospace, navigation, and instruments for

communication purposes. Apart from these, few other activities performed by HAL are

designing, manufacturing, and collecting aircraft, jet engines, helicopters, along with their

elements and spares. Hindustan Aircraft Limited which located at Bangalore, was

incorporated by the industrialist the late Seth Walchand Hirachand in December 1940. The

Government of India became a stakeholder of the company in 1941 and seized the

management department in 1942. HAL has 19 Production Units and 9 Research and Design

Centers in 7 locations in India. The Company has an impressive product track record - 12types of aircraft manufactured with in-house R & D and 14 types produced under license.
http://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Aerospacehttp://en.wikipedia.org/wiki/Ministry_of_Defence_(India)http://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Aircrafthttp://en.wikipedia.org/wiki/Jet_engineshttp://en.wikipedia.org/wiki/Helicopterhttp://en.wikipedia.org/wiki/Nasikhttp://en.wikipedia.org/wiki/Korwahttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Koraputhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Kurt_Tankhttp://en.wikipedia.org/wiki/Hindustan_Maruthttp://en.wikipedia.org/wiki/Airbus_Industrieshttp://en.wikipedia.org/wiki/Boeinghttp://en.wikipedia.org/wiki/Sukhoi_Aviation_Corporationhttp://en.wikipedia.org/wiki/Sukhoi_Aviation_Corporationhttp://en.wikipedia.org/wiki/Israel_Aircraft_Industrieshttp://en.wikipedia.org/wiki/Mikoyanhttp://en.wikipedia.org/wiki/BAE_Systemshttp://en.wikipedia.org/wiki/Rolls-Royce_plchttp://en.wikipedia.org/wiki/Dassault_Aviationhttp://en.wikipedia.org/wiki/Dornier_Flugzeugwerkehttp://en.wikipedia.org/wiki/Aeronautical_Development_Agencyhttp://en.wikipedia.org/wiki/Indian_Space_Research_Organisationhttp://en.wikipedia.org/wiki/Indian_Space_Research_Organisationhttp://en.wikipedia.org/wiki/Walchand_Hirachandhttp://en.wikipedia.org/wiki/Walchand_Hirachandhttp://en.wikipedia.org/wiki/Royal_Indian_Air_Forcehttp://en.wikipedia.org/wiki/Kingdom_of_Mysorehttp://en.wikipedia.org/wiki/Mirza_Ismailhttp://en.wikipedia.org/wiki/British_Governmenthttp://en.wikipedia.org/wiki/Imperial_Japanhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Imperial_Japanhttp://en.wikipedia.org/wiki/British_Governmenthttp://en.wikipedia.org/wiki/Mirza_Ismailhttp://en.wikipedia.org/wiki/Kingdom_of_Mysorehttp://en.wikipedia.org/wiki/Royal_Indian_Air_Forcehttp://en.wikipedia.org/wiki/Walchand_Hirachandhttp://en.wikipedia.org/wiki/Walchand_Hirachandhttp://en.wikipedia.org/wiki/Indian_Space_Research_Organisationhttp://en.wikipedia.org/wiki/Indian_Space_Research_Organisationhttp://en.wikipedia.org/wiki/Aeronautical_Development_Agencyhttp://en.wikipedia.org/wiki/Dornier_Flugzeugwerkehttp://en.wikipedia.org/wiki/Dassault_Aviationhttp://en.wikipedia.org/wiki/Rolls-Royce_plchttp://en.wikipedia.org/wiki/BAE_Systemshttp://en.wikipedia.org/wiki/Mikoyanhttp://en.wikipedia.org/wiki/Israel_Aircraft_Industrieshttp://en.wikipedia.org/wiki/Sukhoi_Aviation_Corporationhttp://en.wikipedia.org/wiki/Sukhoi_Aviation_Corporationhttp://en.wikipedia.org/wiki/Boeinghttp://en.wikipedia.org/wiki/Airbus_Industrieshttp://en.wikipedia.org/wiki/Hindustan_Maruthttp://en.wikipedia.org/wiki/Kurt_Tankhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Koraputhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Korwahttp://en.wikipedia.org/wiki/Nasikhttp://en.wikipedia.org/wiki/Helicopterhttp://en.wikipedia.org/wiki/Jet_engineshttp://en.wikipedia.org/wiki/Aircrafthttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Ministry_of_Defence_(India)http://en.wikipedia.org/wiki/Aerospacehttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bangalore


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HAL has manufactured over 3550 aircraft, 3600 engines and overhauled over 8150 aircraft

and 27300 engines.HAL has been successful in numerous R & D programs developed for

both Defence and Civil Aviation sectors. HAL has made substantial progress in its current

projects:

Dhruv, which is Advanced Light Helicopter (ALH) Tejas - Light Combat Aircraft (LCA) Intermediate Jet Trainer (IJT) Various military and civil upgrades.

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March

2002, in the very first year of its production, a unique achievement.

HAL has played a significant role for India's space programs by participating in the

manufacture of structures for Satellite Launch Vehicles like

PSLV (Polar Satellite Launch Vehicle) GSLV (Geo-synchronous Satellite Launch Vehicle) IRS (Indian Remote Satellite)I NSAT (Indian National Satellite)

HAL has formed the following Joint Ventures (JVs) :

BAeHAL Software Limited

Indo-Russian Aviation Limited (IRAL) Snecma HAL Aerospace Pvt. Ltd. SAMTEL HAL Display System Limited HALBIT Avionics Pvt. Ltd. HAL-Edgewood Technologies Pvt. Ltd. NFOTECH HAL Ltd

Apart from these seven, other major diversification projects are Industrial Marine Gas

Turbine and Airport Services. Several Co-production and Joint Ventures with international

participation are under consideration.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and

Border Security Forces. Transport Aircraft and Helicopters have also been supplied to

Airlines as well as State Governments of India. The Company has also achieved a foothold in

export in more than 30 countries, having demonstrated its quality and price competitiveness.

HAL has won several International & National Awards for achievements in R&D,Technology, Managerial Performance, Exports, Energy Conservation, Quality and

Fulfillment of Social Responsibilities.

HAL was awarded the INTERNATIONAL GOLD MEDAL AWARD forCorporate Achievement in Quality and Efficiency at the International Summit (GlobalRating Leaders 2003), London, UK by M/s Global Rating, UK in conjunction with the


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International Information and Marketing Centre (IIMC).

HAL was presented the International - ARCH OF EUROPE Award in GoldCategory in recognition for its commitment to Quality, Leadership, Technology andInnovation.

At the National level, HAL won the "GOLD TROPHY" for excellence in PublicSector Management, instituted by the Standing Conference of Public Enterprises(SCOPE).

The Company scaled new heights in the financial year 2009-10 with a turnover ofRs.11456.70 Cores.


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PRODUCTS OF HAL
http://www.hal-india.com/Enginebangalore/products.asphttp://www.hal-india.com/EngineKoraput/products.asphttp://www.hal-india.com/Aerospace/products.asphttp://www.hal-india.com/Accessories/products.asphttp://www.hal-india.com/AvionicsKorwa/products.asphttp://www.hal-india.com/AvionicsHyd/products.asphttp://www.hal-india.com/helicopter/products.asphttp://www.hal-india.com/AircraftBangalore/products.asphttp://www.hal-india.com/AircraftNasik/products.asphttp://www.hal-india.com/Enginebangalore/products.asphttp://www.hal-india.com/EngineKoraput/products.asphttp://www.hal-india.com/Aerospace/products.asphttp://www.hal-india.com/Accessories/products.asphttp://www.hal-india.com/AvionicsKorwa/products.asphttp://www.hal-india.com/AvionicsHyd/products.asphttp://www.hal-india.com/helicopter/products.asphttp://www.hal-india.com/AircraftBangalore/products.asphttp://www.hal-india.com/AircraftNasik/products.asphttp://www.hal-india.com/Enginebangalore/products.asphttp://www.hal-india.com/EngineKoraput/products.asphttp://www.hal-india.com/Aerospace/products.asphttp://www.hal-india.com/Accessories/products.asphttp://www.hal-india.com/AvionicsKorwa/products.asphttp://www.hal-india.com/AvionicsHyd/products.asphttp://www.hal-india.com/helicopter/products.asphttp://www.hal-india.com/AircraftBangalore/products.asphttp://www.hal-india.com/AircraftNasik/products.asphttp://www.hal-india.com/Enginebangalore/products.asphttp://www.hal-india.com/EngineKoraput/products.asphttp://www.hal-india.com/Aerospace/products.asphttp://www.hal-india.com/Accessories/products.asphttp://www.hal-india.com/AvionicsKorwa/products.asphttp://www.hal-india.com/AvionicsHyd/products.asphttp://www.hal-india.com/helicopter/products.asphttp://www.hal-india.com/AircraftBangalore/products.asphttp://www.hal-india.com/AircraftNasik/products.asphttp://www.hal-india.com/Enginebangalore/products.asphttp://www.hal-india.com/EngineKoraput/products.asphttp://www.hal-india.com/Aerospace/products.asphttp://www.hal-india.com/Accessories/products.asphttp://www.hal-india.com/AvionicsKorwa/products.asphttp://www.hal-india.com/AvionicsHyd/products.asphttp://www.hal-india.com/helicopter/products.asphttp://www.hal-india.com/AircraftBangalore/products.asphttp://www.hal-india.com/AircraftNasik/products.asphttp://www.hal-india.com/Enginebangalore/products.asphttp://www.hal-india.com/EngineKoraput/products.asphttp://www.hal-india.com/Aerospace/products.asphttp://www.hal-india.com/Accessories/products.asphttp://www.hal-india.com/AvionicsKorwa/products.asphttp://www.hal-india.com/AvionicsHyd/products.asphttp://www.hal-india.com/helicopter/products.asphttp://www.hal-india.com/AircraftBangalore/products.asphttp://www.hal-india.com/AircraftNasik/products.asphttp://www.hal-india.com/Enginebangalore/products.asphttp://www.hal-india.com/EngineKoraput/products.asphttp://www.hal-india.com/Aerospace/products.asphttp://www.hal-india.com/Accessories/products.asphttp://www.hal-india.com/AvionicsKorwa/products.asphttp://www.hal-india.com/AvionicsHyd/products.asphttp://www.hal-india.com/helicopter/products.asphttp://www.hal-india.com/AircraftBangalore/products.asphttp://www.hal-india.com/AircraftNasik/products.asphttp://www.hal-india.com/Enginebangalore/products.asphttp://www.hal-india.com/EngineKoraput/products.asphttp://www.hal-india.com/Aerospace/products.asphttp://www.hal-india.com/Accessories/products.asphttp://www.hal-india.com/AvionicsKorwa/products.asphttp://www.hal-india.com/AvionicsHyd/products.asphttp://www.hal-india.com/helicopter/products.asphttp://www.hal-india.com/AircraftBangalore/products.asphttp://www.hal-india.com/AircraftNasik/products.asphttp://www.hal-india.com/Enginebangalore/products.asphttp://www.hal-india.com/EngineKoraput/products.asphttp://www.hal-india.com/Aerospace/products.asphttp://www.hal-india.com/Accessories/products.asphttp://www.hal-india.com/AvionicsKorwa/products.asphttp://www.hal-india.com/AvionicsHyd/products.asphttp://www.hal-india.com/helicopter/products.asphttp://www.hal-india.com/AircraftBangalore/products.asphttp://www.hal-india.com/AircraftNasik/products.asp


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PRODUCTS IN CURRENT MANUFACTURING RANGE

Su 30 MKI

Twin-seater, Multi-role, Long range Fighter /Bomber / AirSuperiority

Aircraft.

MiG-27 M Single-seaterTactical Fighter / Bomber with variablesweep wings.

MiG-21 VARIANTSSingle-seater Front line Tactical Interceptor/Fighter Aircraft.

METALLIC DROP TANKS

The Division manufactures different types of

metallic drop (Jettisonable) tanks with capacity of

490 and 800 litres

DIVISIONS OF H.A.L

Accessories Division : LUCKNOW

Aerospace Division : BANGALORE

Aircraft Division : NASIK

Aircraft division : BANGALORE

Avionics division : HYDERABAD

Avionics division : KORWA

Engine division : BANGALORE

Engine division : KORAPUT


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Foundry & Forge division : BANGALORE

Overhaul division : BANGALORE

transport aircraft division : KANPUR

Helicopter division ; BANGALORE

Industrial & Marine gas turbine division : BANGALORE

OBJECTIVES OF HAL

To ensure availability of Total Quality People to meet the Organizational Goalsand Objectives

To have a continuous improvement in Knowledge, Skill and Competence(Managerial, Behavioral and Technical)

To promote a Culture of Achievement and Excellence with emphasis on Integrity,Credibility and Quality

To maintain a motivated workforce through empowerment of Individual andTeam- building

To enhance Organizational Learning To play a pivotal role directly and significantly to enhance Productivity,

Profitability and improve the Quality of Work Life

STRATEGY OF HAL

To be in total alignment with Corporate Strategy. Maintain Human Resource at optimum level to meet the objectives and goals of

the Company.

Be competent in Mapping, Analysis and Upgradation of Knowledge and Skillsincluding Training, Re-training, Multi-skilling etc.

Cultivate Leadership with Shared Vision at various levels in the Organization. Focus on Development of Core Competence in High-Tech areas. Build Cross-functional Teams. Create awareness of Mission, Values and Organizational Goals through out the

Company.

Introduce / Implement personnel policies based on performance that would ensuregrowth, Rewards, Recognition and Motivation.

VISION

"To make HAL a dynamic, vibrant, value-based learning organisation with human

resources exceptionally skilled, highly motivated and committed to meet the current

and future challenges. This will be driven by core values of the Company fully

embedded in the culture of the Organisation".


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MISSION

Enable all those working for HAL to give their best to ensure their all-round growth as

well as that of the organization. To become a globally competitive aerospace industry

while working as an instrument for achieving self-reliance in design, manufacture and

maintenance of aerospace defence equipment and diversifying to related areas,

managing the business on commercial lines in a climate of growing professional

competence.

" To become a globally competitive aerospace industry while working as an

instrument for achieving self-reliance in design, manufacture and maintenance of

aerospace defence equipment and diversifying to related areas, managing the business

on commercial lines in a climate of growing professional competence ".

VALUES

CUSTOMER SATISFACTIONWe are dedicated to building a relationship with our customers where we become

partners in fulfilling their mission. We strive to understand our customers ' needs and

to deliver products and services that fulfill and exceed all their requirements.

COMMITMENT TO TOTAL QUALITYWe are committed to continuous improvement of all our activities. We will supplyproducts and services that conform to highest standards of design, manufacture,

reliability, maintainability and fitness for use as desired by our customers.

COST AND TIME CONSCIOUSNESSWe believe that our success depends on our ability to continually reduce the cost and

shorten the delivery period of our products and services. We will achieve this by

eliminating waste in all activities and continuously improving all processes in every

area of our work.

INNOVATION AND CREATIVITYWe believe in striving for improvement in every activity involved in our business by

pursuing and encouraging risk-taking, experimentation and learning at all levels

within the company with a view to achieving excellence and competitiveness.


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TRUST AND TEAM SPIRITWe believe in achieving harmony in work life through mutual trust, transparency, co-

operation, and a sense of belonging. We will strive for building empowered teams to

work towards achieving organisational goals.

RESPECT FOR THE INDIVIDUALWe value our people. We will treat each other with dignity and respect and strive for

individual growth and realization of everyone's full potential.

INTEGRITYWe believe in a commitment to be honest, trustworthy, and fair in all our dealings.

We commit to be loyal and devoted to our organization. We will practice selfdiscipline and own responsibility for our actions. We will comply with all

requirements so as to ensure that our organization is always worthy of trust.

CUSTOMERS

International Customers Domestic Customers Airbus Industrie, France APPH Bolton, UK BAE Systems, UK Chelton, UK Coast Guard, Mauritius Corporate Air, Philippines Cosmic Air, Nepal Dassault Aviation, France Dowty Aerospace Hydraulics,

UK

EADS, France ELTA, Israel Gorkha Airlines, Nepal Hampson, UK Honeywell International,

USA

Island Aviation Services,Maldives

Israel Aircraft Industries,Israel

Messier Dowty Ltd., UK Mistubishi Heavy Industries,

Japan

MOOG, USA

Air India Air Sahara Airports Authority of India Bharat Electronics Border Security Force Coal India Defence Research & Development

Organisation

Govt. of Andhra Pradesh Govt. of Jammu & Kashmir Govt. of Karnataka Govt. of Maharashtra Govt. of Rajasthan Govt. of Uttar Pradesh Govt. of West Bengal Indian Airforce Indian Airlines Indian Army Indian Coast Guard Indian Navy Indian Space Research Organisation Jet Airways

Kudremukh Iron ore Company ltd. NALCO


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ACHIEVEMENTS & AWARDS:

HAL has been honored with number of awards.

1) It has bagged the Engineering export promotion council ( EEPC) award once

again for best performance in engineering consultancy. Technology know how and other

engineering services category.

2) Hindustan Aeronautics Limited (HAL) has received the Institution of

industrial engineering (IIE) enterprise excellence award and gold shield in the manufacturing

group (Engineering for financial operational strength for the year 2002-03 during the 2nd

Coe's conference on world class ingts practices held on 4th June 2004 at Hyderabad.

3) HAL has been conferred the '' Top- 10 MOU award'' by the department of

public enterprises ministry and heavy industries for excellence in achievement of MOU

targets for the year 2003-03.

4) HAL is proud of this chairman Mr. N.R. Mhanty who has back conferredwith '' Padma Shri'' award by his excellence''. Dr. AP AbdulKalam Khan honorable president

of India in recognition to his contribution to the nation in the field of science and technology.

Namibian Air Force, Namibia Peruvian Air Force , Peru Rolls Royce Plc, UK Royal Air Force, Oman

Royal Malaysian Air Force,Malaysia

Royal Nepal Army, Nepal Royal Thai Air Force,

Thailand

Smiths Industries, UK Snecma, France Strongfield Technologies, UK The Boeing Aircraft

Company, USA

Transworld Aviation, UAE Vietnam Air Force, Vietnam

Oil & Natural Gas Corporation Ltd. Ordnance Factories Reliance Industries United Breweries


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ORGANIZATION HIERARCHY

DEFENCE MINISTER SECRETATRIAT SCHEDULE---A : CHAIRMAN SCHDULE---- : MANAGING DIRECTOR GRADE : EXECUTIVE DIRECTOR GENRAL MANAGER ASST. GENRAL MANAGER DEPUTY GENRAL MANAGER CHIEF MANAGER SENIOR MANAGER MANAGER

DEPUTY MANAGER OFFICER ASST. OFFCIER GROUPS : SENIOR ASST. SUPERVISOR ASST. SUPERVISOR HIGH SKILLED TECHNICIAN HELPERS


15/18

EVOLUTION AND GROWTH OF THE COMPANY

The Company's steady organisational growth over the years with consolidation andenlargement of its operational base by creating sophisticated facilities for manufacture ofaircraft / helicopters, aeroengines, accessories and avionics is illustrated below.


16/18

FINANCIAL PERFORMANCE


17/18

BALANCE SHEET


18/18

PROFIT AND LOSS ACCOUNT

Hal Directly

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