MONOPOLY: HAL
PRESENTATION BY ARPITA
JAISWAL AND CHINMAYI
MASURKAR
WHAT IS MONOPOLY?
•A monopoly is a dominant position of an industry or sector by
one
company, to the point of excluding all other viable competitors.
•A monopoly consists of a single company that dominates an
industry.
•The term monopoly means a single seller.( mono=single and
poly=seller).
In economics, a monopoly refers to a firm which has a product
without any substitute in the market. Therefore, for all practical
purposes ,it is a single firm industry.
Monopoly definition by Prof. A.J. Braff - “Under monopoly, there is
single seller in the market. The monopolist’s demand is the market
demand. The monopolist is the price maker. Monopoly suggests a no
substitute situation.”
Examples: IRCTC, ISRO
STATE MONOPOLY- HAL
A FORM OF COERCIVE
MONOPOLY IN WHICH A
GOVT AGENCY OR GOVT
CORPORATION IS A SOLE
PROVIDER OF A
PARTICULAR GOOD OR
SERVICE.
Caption
HINDUSTAN AERONAUTICS
LIMITED
Hindustan Aeronautics Limited (HAL) is an Indian Caption
state-owned aerospace and defence company,
headquartered in Bengaluru, India.
Established on 23 December 1940, HAL is one of the
oldest aerospace and defence manufacturers in the
world today.
HAL is managed by a Board of Directors appointed by
the President of India through the Ministry of
Defence, Government of India.
FEATURES OF MONOPOLY:
NO CLOSE
SINGLE PRICE MAKER SUBSTITUTE
SELLER
S
MAXIMISE FEATURES HIGH ENTRY
PROFITS BARRIERS
PRICE
LACK OF
DISCRIMINA
COMPETITION
TION
FEATURES OF HAL THAT
MAKE IT MONOPOLY:
1. Single seller of Transfer aircrafts, Fighter
aircrafts and Helicopters.
2. No competition not even close.
HAL COMPETES WITH ONLY ONE THAT
IS HAL.
3. Different prices for home country and
foreign country.
PRICE DISCRIMINATION UNDER HAL
•In Jan 2021, IAF signed a deal worth Rs
36,000 crores for the acquisition of 83 LCA
Tejas MKI A.
•In the Aero India Show, Malaysia and other
South-Eastern and Middle-Eastern countries
showed interest in the purchase of LCA Tejas
MKI.
•Cost per aircraft for export was set at Rs
589 crores.
REVENUE AND EXPENSES OF HAL
Year Total Revenue Total Expenses
2017 18994.09 15411.51
2018 19280.46 15957.62
2019 20383.98 16641.64
2020 21731.71 17922.28
2021 23115.25 18844.38
REVENUE AND EXPENSES OF HAL
Total Revenue and Total Expenses
30000
Total Revenue Total Expenses
24000 23115.25
21731.71
20383.98
18994.09 19280.46 18844.38
17922.28
18000 16641.64
15411.51 15957.62
12000
6000
0
2017 2018 2019 2020 2021
IS HAL A PROFIT MAKING ENTITY ?
5,000.00
Profits( 4270.89
before Total Tax profit 3928.35
3742.34
Year tax) expenses after tax 3,750.00 3582.58
3322.84
3232.96
2017 3,582.58 966.95 2,615.63
2832.36
2615.63
2018 3,322.84 1,252.43 2,070.41 2,500.00 2346.06
2070.41
2019 3,742.34 1,396.28 2,346.06
2020 3,928.35 1,095.99 2,832.36 1,250.00
2021 4,270.89 1,037.93 3,232.96
0.00
2017 2018 2019 2020 2021
Profits( before tax) profit after tax
WHY HAL HAS BEEN A BOON TO INDIA?
•HAL was established in India when it didn’t
possess any homegrown capability in
Defence sector.
•HAL manufactures SUKHOI 30 MKI
fighter jets, DORMIER 228 and
helicopters like DHRUV, CHETAK, ,etc.
•HAL’S major exporting partners includes
Vietnam Air Force, Nepal Army, Royal Thai
Air Force, Boeing and Oman.
•HAL has also been involved in the
manufacturing of some important satellite
launch vehicles like INSAT,
IRS,PSLV,GSLV.
WHAT WOULD BE THE FUTURE OF HAL?
•HAL is facing the problem of uncertainties over it’s
future projects with cancellation of its important
projects like FGFA and MMRCA.
WILL HAL LOOSE ITS MONOPOLY?
•Emerging private players like RELIANCE DEFENCE AND
AEROSPACE in India and DASSAULT AVIATION,
LOCKHEED MARTIN from abroad.
•Also HAL’S reliance on govt projects.
REFERENCES
• Top 10 Indian Monopoly Companies | Latest Monopoly Shares in INDIA ([Link])
• India Eyes 'Debut Contract' For LCA Tejas Fighter Jets With Malaysia After BrahMos
Success With The Philippines ([Link])
• India's Defence PSU HAL Leans On Domestic Monopoly ([Link])
• [Link]
says/598642/
• [Link]
tember-7460766/
• [Link]
hilippines-121113001510_1.html
• [Link]
• [Link]
• Hindustan Aeronautics Ltd. Profit & Loss account, Hindustan Aeronautics Ltd. Financial Statement & Acc
ounts ([Link])
THANK YOU
