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 co-ordination

PRESENTATION ON HAL

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