The Rs 11,000-crore state-run plane-maker Hindustan Aeronautics (HAL) has drawn up a road map for its future growth. Key elements that underpin the growth strategy are a major expansion driven by new projects and greater private participation.

Over the next 12 years, HAL would invest about Rs 4,650 crore on new plants and machinery alone. More investments would follow into project-specific tooling and equipment.

The 12 years will also see HAL coming out with new products like the medium multi-role combat aircraft (MMRCA), at least two new helicopter models, a turbo-prop trainer, a transport aircraft and a fifth-generation fighter aircraft?the latter two with Russian collaboration.

Immediate projects on its hand are an intermediate jet trainer and a light combat helicopter?both are in the flight testing stage?and upgrades of the existing fleet of Jaguar and Mirage aircraft.

All told, orders worth Rs 80,000 crore are on HAL?s books at the moment. Last month, it finalised a contract with UK?s BAE Systems for a follow-on order of 57 Hawk jet trainer aircraft it would manufacture locally for the Indian Air Force.

That sets the stage for a greater role for the private sector in manufacturing. ?It is envisaged to increase the outsourcing from the present level as private industry is gaining expertise in aerospace manufacturing.? says P Soundara Rajan, director, corporate planning & marketing.

The company, which has a workforce of around 34,000, does not plan any large-scale recruitment except in critical hi-tech areas to execute the projects. ?Moving up from outsourcing of components, increased participation will be sought in sub-assemblies and major assemblies (from the private sector),? says Soundara Rajan.

HAL should ultimately become an integrator, says AK Saxena, former managing director of HAL?s Bangalore Complex, who now runs Navv Avia Technologies, a Bangalore-based aerospace firm. ?We have to create huge facilities in the private sector in partnership with HAL,? says Saxena, adding that the company?s outsourcing levels have gradually been increasing from about 5% in early 2000.

While approval is awaited for projects such as the medium transport aircraft, proposed as a partnership with Russia, HAL expects to freeze the design of the light utility helicopter this year. Besides, it has launched preliminary design studies for the HTT-40, a turboprop trainer.

HAL is aiming at an initial operational clearance for the light combat helicopter by 2014.

Last year, HAL introduced a new military variant of its indigenous product advanced light helicopter Mk III to meet high altitude operational requirements for the defence forces. This is being followed by an armed variant.

According to CG Krishnadas Nair, former chairman of HAL, the company?s thrust on indigenous aircraft, overseas collaborations and increasing the product range was part of its 15-year, long-term corporate plan drawn up in 1997. ?Partly, it has been done. Many things envisaged have not been done?, says Nair. ?We should keep making next generation products.?

Both Nair and Saxena agree that exports of the advanced light helicopter (ALH) have not been on expected lines.

The ALH is being positioned as the company?s major product for the civil aviation market, a sector that accounted for about 8% of HAL?s total sales of Rs 11,415 crore in 2009-10.

The company?s FY10 revenues were up 10%, driven mainly by the production of the Sukhoi Su-30 MKI fighter plane and the Hawk trainer.

HAL?s civil aviation business includes manufacture of aero structures and components like engine kits for companies such as Airbus SAS and Honeywell .

In July, it floated a new joint venture with British engine maker Rolls-Royce Plc to manufacture engine components for civil aircraft.

Besides manufacturing, HAL would step up third and fourth line maintenance and spares support to ?performance-based logistics? contracts.

?As a pilot project, HAL has identified the ALH and Hawk programmes to initiate a feasibility study exercise, which is under progress,? says Soundara Rajan. ?The draft of the framework for performance-based logistics contract that HAL is likely to offer has been prepared for discussion with customers.?

With BAE Systems looking for a partnership with HAL for the global market, the company could see potential business coming from support to Hawk aircraft, nearly 900 of which are in service globally.

Says Soundara Rajan: ?Having established manufacturing and overhaul facility, HAL can be the service provider for the Hawk fleet for its lifetime for both domestic and foreign customers.?