HAL on Expansion Mode

SP’s Show News (SP’s) : HAL’s turnover in 2009-10 was about 11,500 crore and profit before tax of Rs 2,680 crore. What is the target for 2010-11 and are you on course?

Ashok Nayak (Nayak): The target is Rs 12,600 crore and we have been on track so far. We will be achieving the target with regard to both production and financials.

SP’s: You have said that HAL’s strategy is to go aggressive on exports,abut there was a dip in export revenues from Rs 430 crore in 2009 to Rs 200 crore in 2010? What is it like for 2010-11?

Nayak: In 2009, we touched Rs 430 crore boosted by the export of helicopters to Ecuador. The projection for 2011 is about Rs 250 crore. We are primarily looking at Latin America where they are all praise for the helicopter. We will relaunch the marketing after Aero India. The new markets we are targeting include Columbia and Peru. Helicopters of HAL are in operation in Mauritius and Maldives.

SP’s: With doubling of aircraft production/acquisition there would capacity expansion, could you outline HAL’s expansion plans?

Nayak: Capacity expansion will not happen overnight. The existing infrastructure will not suffice for the new inductions including MMRCA. We have to build infrastructure now for which we need massive investments and we are working in that direction. We will have to have a different factory for the light combat helicopter LCH. So also, there is need for a new infrastructure for the light utility helicopter (LUH), which presently is on the design board. The first prototype is expected to fly in 2012 and the requirement is 187 units.

SP’s: With regard to MMRCA, which contender is the friendliest one to current infrastructure?

Nayak: The current infrastructure just cannot match. Each aircraft is different, accordingly infrastructure is created. Having dealt with Jaguar, Sukhoi 30 and other aircraft, we believe we can have an appreciation of something new.

SP’s: On the fifth generation fighter aircraft (FGFA) what will be HAL’s contribution?

Nayak: We have signed the contract for the preliminary design of the FGFA with Russia’s Rosoboronexport and Sukhoi. It will involve the production of 200-250 aircraft. We are in the preliminary stages and the entire manufacturing will follow, led by HAL. And HAL on its own cannot do everything. We certainly need active involvement of the private industry.

SP’s: What is the outlook for 2011?

Nayak: I will be retiring. I want to go out a happy man. We had the first flight of LCH in March 2010... that is a culmination of tremendous efforts on everyone’s part. Such instances make you happy. I believe that one should learn from ones past experiences...I won’t call it mistakes. We had a number of issues with the ALH....on engine, transmission etc... but whatever learning we had from ALH, the LCH programme will be a smoother one.