HAL to step up outsourcing to bringdown cost of its products: CMD

HAL to step up outsourcing to bringdown cost of its products: CMD

Agency News

Bengaluru, Feb 21: Public Sector aircraft maker Hindustan Aeronautics Ltd (HAL) has decided to increase outsourcing of Aero components used in manufacture of aircraft in its facilities to private industry to ensure rationalising deployment of its workforce as well as bring down the cost of products.

Speaking at a press conference on the second day of Aero India 2019 Defence and Aerospace exposition here on Thursday, HAL Chairman and Managing Director R Madhavan said the company was outsourcing up to 30 per cent of components including Aero structures to private industry and it will be stepped up.

'We are already doing it. We want to rationalise the use of our workforce and gain cost arbitrage by increasing outsourcing work to the industry. We had outsourced work equivalent to 125 lakh man hours during last one year,' he said explaining that outsourcing work was not calculated on the basis of cost by HAL.

Mr Madhavan said the order book of the company has touched Rs 63,000 crore at present and it may cross Rs 1.25 lakh crores once HAL gets the order of 83 Light Combat Aircraft and Aero engines from its main customer Indian Air Force.

He said plans on increasing the capacity of Aircraft production was on tune and HAL was working towards achieving a capacity to produce 24 Aircraft of different kinds from the current 16 per annum. Once the production of Sukhoi MKI is completed, it would convert its production line in Nasik to manufacture trainer aircraft LJT and other aircraft. No production line will be left idle.

'We are happy that Light Combat Aircraft 'Tejus' had received FOC for its Mk-I yesterday and hope that IAF would soon finalise the purchase of the 83 Tejus aircraft. We are also planning to export the multi-role fighter jet to other countries and initially looking markets in North Africa and Asia,' he added.

To a question of HAL facing financial difficulties, Mr Madhavan said it was not true. 'We are not facing any financial crisis but there was some problem with cash flow this fiscal but it has been sorted out".

HAL Director (Finance) Anantha Krishnan said the financial condition of the company was stable and cash flow problem was a thing of the past. With the new budget of the company coming, cash flow problems would no more exist. 'The profits are growing each quarter and we achieved a growth of 13 per cent. Financial condition is not an issue at all, he stated.

To another question Mr Madhavan said HAL was ready to take up up-gradation of MIG 29 but IAF was yet to accord permission. 'HAL has already done such work by upgrading Sukhoi and other aircraft. We are capable of doing it once IAF makes up its mind,' he added. (UNI)