'HAL aspires to be a global aviation player'

Font Size

Print

Feedback

Email

Discuss

: The sky’s the limit for state-owned Hindustan Aeronautics Ltd (HAL). The company recorded sales of Rs 8,350 crore last year—accounting for half of all defence public sector undertakings (D-PSUs)—and also notched up export earnings to the tune of Rs 325 crore. With offsets set to become a major clause in all of India’s future defence deals, the D-PSU has entered into joint ventures with several international players as part of its expansion programme. FE’s Huma Siddiqui caught up with HAL chairman Ashok K Baweja for a wide-ranging discussion on the organisation’s current and future plans. Excerpts:

HAL has inked several MoUs with international companies, including some from the US. In terms of business, what does this mean?

HAL has signed MoUs with some of the world’s leading aerospace companies to explore opportunities for cooperation in design, production, sourcing, joint ventures, business development etc. As a follow up to these initiatives, detailed interactions take place to formalise the cooperation by identifying specific areas of mutual interests. MoUs concluded with Pratt & Whitney, Ruag, Honeywell and Airbus have resulted in major contracts for HAL.

With the spurt in the attrition rate of scientists, and with so many projects in hand, how are you dealing with the skill shortage?

In 2004, a good number of young executives resigned from the company. An employee satisfaction survey was conducted in April-July 2005 to ascertain the causes for the increase in attrition. The survey revealed that HR activities in HAL must take into account talent acquisition, performance management, career & succession planning, talent development and compensation management in a seamless way.

A number of measures like better pay packages, accelerated promotions, sponsored higher education in prestigious institutions in India and abroad and performance-linked incentives have been introduced in the company from 2006. These measures have reduced the rate of attrition by more than half in 2007 and 2008, compared to that in 2005 and 2006.

HAL has tied up with Russian aviation major Ilyushin Aviation Complex to develop a multi-role transport aircraft (MTA). The joint venture will take off with an initial capital base of $600 million. How much is the Russian component in this? And what is the status of this project?