HINDUSTAN AERONAUTICS LIMITED

ASIA’S PREMIER AEROSPACE COMPLEX

 INTRODUCTION TO INDUSTRY
HAL was formed on 1st October 1964 by the merger of Hindustan Aircraft limited and
aeronautics India limited.

The late Shri “ WALCHAND HIRACHAND “ set up Hindustan Aircraft limited at Bangalore
in Karnataka in December 1940, in association with the government of Mysore, as a
private limited company, in June 1942. The government of India purchased the interest
of the company and took over its management. The HARLOW TRAINER AND CURTISS
HAWK FIGHTER AIR CRAFT LIMITED and they were successfully flown in 1942.

In 1948, with the impetus given by the prime minister of India, late Sri Jawaharlal
Nehru the policy of manufacture as well as design and development of Aircraft was
taken over by the government of India. In august 1962, government of India entered
into a collaboration agreement with the Soviet Union for the manufacturing of MIG-21
FL AIR CRAFT including its engine and avionics HINDUSTAN AERONAUTICS LIMITED was
formed to undertake the manufacture and overhaul of the airframes / assembling of
the air craft, Koraput in ORISSA, for the manufacturing and overhaul of aero engines
and at Hyderabad in Andhra Pradesh for the avionics for the MIG Aircraft. Hindustan
Aircraft limited and aeronautics India limited were merging red in October 1964 to form
the present Hindustan aeronautics limited. In July 1970 a helicopter division was
established as a part of BANGALORE complex for the manufacture of “CHETAK” and
“CHEETAH” helicopters under license from FRANCE.
 
“To become a globally competitive aerospace industry while working as an instrument for achieving self
reliance in design manufacture and maintenance of aerospace defense equipment and diversifying to
related areas managing the business on commercial lines in a climate of growing professional
competence’’
 
Over the first five decades HAL has spread its wings to cover various actives in the area of design,
development, manufacture and maintenance of Light aircraft, piston and jet engine of imported
category was delivered to HAL, Nasik division in the year 1978-79. A total of 300 engines are to be
delivered under this project. Against this task, the division has already delivered 88 engines of different
imported categories. The first raw-materials engine is scheduled for delivery during the year 1982-83.

In august1966 an agreement was signed with Soviet Union to set up overhaul project in this division
and the government sanction was accord in 1967.Thefactory started overhaul of RF-300 series-III, R11F
series 9&10& R11F2s/F2SK series engine. The division till the end of March 1982 has overhauled a total
of 1067 engines.
 
The division is currently engaged in setting of facilities for taking up the overhaul of R25 series engines
for the year 1982-83 onwards. With the signing of internal governmental agreement for the
manufacture of MIG-27M Aircraft on 19th March 1982, this division would be involved in the
manufacture of 285 numbers of the engines from the year 1984 to 85 onwards. In order to attend the
self sufficiency & to avoid difficulties regarding the supply of the raw materials & other bought out
items from USSR, it was decided to provide indigenous support to spare manufacturing for the
overhaul/maintenance of the MIG fleet. The government approval for undertaking the task was
received during 1977-78 & indigenous plan was formed to tackle.
 
INDUSRTY SCENARIO
COMPLEXES
 
 
 QUALITY OBJECTIVE
• Quality and reliability requirements including functional
maintainability and life characteristics within due attention to
economy in production and delivery schedule.
• Adherence to approved specifications during receipts,
manufacture, assembly with stress on prevention of defects.
• Selection development, evaluation and monitoring of
suppliers and sub contracts using scientific me execution
methods and adequate technical support.
• Planned and systemic execution of the programs for
familiarizing customers adequately on proper usage of our
products.
• Development of Hr by imparting knowledge and skill through
TQM concept to all personnel in the company.
 BUSINESS ALIANCES
  The aerospace industry requires a highly innovative technology which is evolving continuously. HAL
has products following from Russian as well as European collaborators besides those developed
indigenously. The company imports raw materials, system and components from foreign suppliers. The
company has adopted the strategy to conclude long-term business agreement to ensure timely delivery
of material at agreed prices.
The company has formed 10 joint ventures companies (JVCs) with international major viz. BAe
System plc. (UK), RAC MIG (RUSSIA), Snecma (France), Elbit Systems (Israel), CAE (Canada), Edgewood
Venture LLC (USA), Rolls Royce, UK & India majors including the TATA Group, InfoTech Enterprise &
Samtel Group with a view to develop indigenous capabilities and product.
 
 

STANDARD OF HAL
Strictly adhere to the standards, specification, stipulated in ISO-9001.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

  The company has been proactively pursuing CSR activities at its division since inception. The activities
include adoption of village for upliftment of the socially and economically backward section by
providing infrastructure, health, education, drinking water facilities etc.
The government has recently guidelines on CSR & the Co. is in the process of formulating a policy
accordingly. Under the policy, a percentage of the profit will be resolved to carry out the CSR activities.
 
CORPORATE GOVERNANCE
 
Corporate governance is about the application of the best management practices,
compliance of law and adherence to ethical standard to achieve the company’s
objective of enhancing shareholders value and discharge of social responsibility.
HAL has a well established transparent and fair administration setup to provide
for professionalism and accountability. The company has adopted a “Code of Business
Conduct & Ethics” for Board Members and senior management.
A Whistle Blowing policy has recently been promulgated with a view to establish
a mechanism for the employees to report unethical behaviour cases of suspected
fraud, violation of company general guidelines on conduct and ethics, to the
management.
The audit committee headed by an independent director is overseeing the
implementation up-gradation of good governance measures and implementation of
guidelines issued by the department of public enterprise.
COMPANY PROFILE - KORAPUT, SUNABEDA (ENGINE
DIVISION)
An agreement was signed in august 1962, with the
Soviet Union for manufacture of MIG-29 E7FL Aircraft
under license. The aero engine factory at Koraput
(ORISSA), the air frame factory at Nasik
(MAHARASHTRA), and the avionics factory at
Hyderabad (ANDHRA PRADESH) have been set up to
meet this requirement under the name of
aeronautics India limited which was formed on 1st
April 1964, and a new company under the name of
HINDUSTAN AETRONAUTICS LIMITED was formed.
 BASIC OBJECTIVES OF HAL: -

• To serve as an instrument of the national policy to achieve Self-reliance in the design,

development & production of aircraft & Aeronautical equipments to meet the
country’s charging & growing need with special emphasis in Military equipments.

• In fulfilment of these objectives, the company shall regard its self fundamental
responsibility for designing & development relying, however upon such relevant
facilities as are available in other institution but always holding itself basically
responsible for the growth & furtherance of the countries Aeronautics ion capability.

• To conduct its business economically & efficiently that it can contribute its due share to
the national efforts to achieve a self-reliant & self-generating economy.
 
• Towards this end to develop & maintain all organization, which shall readily respond to
& adopt the changing matrix of sociotechono economic relationship & where in a
climate of growing professional competence, self discipline, mutual understanding,
deep commitment & a sense of belonging will be fostered & each employee will be
encouraged to grow in accordance with this potential for the furtherance of
organizational goals.
PRODUCT LINE OF HAL (KORAPUT DIVISION)
 MAIN CUSTOMERS OF HAL (KORAPUT DIVISION)

The Indian Air force is a HAL’S principal customer. Around 95% of the total sale is to
Indian air force. The other customers for aircraft and helicopters produced by the
company are
 
Indian navy (Kiran-jet trainer indigenous developed): Chetak –helicopters & advanced
light helicopters etc.

Indian airlines (Hs -7481-transport aircraft produced under license)

Others (hs-7481 to bsf, dgca etc., ht Puspak to civil clubs, Basant-agricultural air craft
indigenously produced to directorate of agriculturalavation, chetak helicopters to state
govts. Coast guard, private firm’s ongc etc.)
 
Overseas customer-supplies sub- contracted work to world leaders like air bus
industries, Boeing & Rolls Royce. Besides these other exports customers are like UK,
France, Italy, Nepal, Malaysia, Mauritius, Canada, Chile & Iraq etc. MITSUBISHI HEAVY
INDUSTRIES. JAPAN is a prestigious addition to this list.
ADIMINISTRATION CHART OF HAL (KORAPUT DIVISION)
HR PRACTICE OF KORAPUT DIVISION
KINDS OF WORKING CAPITALS:
 SWOT ANALYSIS

STRENGTHS 
• Highly skilled and competitive workforce.
• Quality of the product.
• Monopoly in overhauling of Industrial and Marine Gas Turbine’s of higher capacity.
• Have good testing facilities for all the Engines they produce and Overhaul.
• Maintain timely delivery of goods and services.
• Brand name of HAL.
 
WEAKNESS
• Lack of Research and development facility.
• Lack of innovations.
• Decision making process is prolonged due to the hierarchical nature of the organization.
OPPORTUNITIES
• Tata power is planning to setup more power producing plants this serves
HAL (SUNABEDA) as an opportunity.
• Reliance oil and corporation has plans to increase their production by
increasing the no. at the Godavari basin.
• Demand may increase further due to the increased demand from the 44
military ship programs around the world.
• Demand for the power is increasing around the world so this serves as a
opportunity of industrial gas turbines.
 

THREATS
• International competitor is a major threat.
 ANALYSIS AND FINDING OF ORGANISATION

• HAL among the public sector claims to be the best and which is true.
• HAL has learnt it hard way and has been continuously striving to compete with
the
• Competitors and has been successful.
• HAL does not approach the customer instead it waits for the customer to come
to it
• Since its products are priced higher than other players in the field so it thinks
that those
• Who can afford its products will automatically approach it.
• HAL is being showing consistent growth prospective.
• There has been constant rise in HAL profit year after year.
• HAL is managing its Human Resources and marketing very effectively by
conducting
• Various types of training and other sessions.
• It has centralized many functions which help of better control and co­ordination
PRESENTATION ON HAL

Presented By
Ankit Kumar Baid
MBA+PGDM+ED
Bharatiar University
21.01.2011