HAL company presentation

INDUSTRY ANALYSIS

1. PRESENTATION ON HAL BY. SURENDRA PATIL YUGAN DESAI KRISHNA KURE RAHUL VALU SHUBHAM TAMBOLE

2. Hindustan Aeronautics Limited ENTERPRISE HISTORY AND BACKGROUND 23 DEC. 1940, Bangalore KARNATAKA ESTABLISHMENT

3. HISTORY– Hindustan Aeronautics Limited is an Indian state-owned aerospace and defence company based in Bangalore, Karnataka. It is governed under the management of the Indian Ministry of Defence HAL was established as Hindustan Aircraft at Bangalore on 23 Dec 1940. By Shri Walchand Hirachand  a farsighted visionary in association with the Government of Mysore with an Authorised Capital of Rs.4 crore and with the aim of manufacturing aircraft in India. Maharaja of Mysore Jayachamaraja Wodeyar invest 25 lakhs and gave initial 700 acres of land free. The organisation and equipment for the factory at Bangalore was set up by William D Pawley of the Intercontinental Aircraft Corporation of New York, who had already established “Central Aircraft Manufacturing Company” (CAMCO) in partnership with Chinese Nationalist government in China. Pawley managed to obtain a large number of machine-tools and equipment from the United States. In 1941 Indian Government bought a one-third stake in the company

4. In 1942 Indian Government get the management control of company. In 1943 the Bangalore factory was handed over to the United States Army Air Forces but still using Hindustan Aircraft management. After India gained independence in 1947, the management of the company was passed over to the Government of India. In January 1951, Hindustan Aircraft Private Limited was placed under the Administrative control of Ministry of Defence. On 1 October 1964 Government of India take full control on Hindustan Aircraft Limited and change it to Hindustan Aeronautics limited.

5. Vision for 2020 . HAL hopes to be a US$ 20 billion organization with civil, defence, UAV manufacture & MRO activities. It aims to remain the public sector leader in Aerospace & get into more JVs with other partners. Rs70 crores have been earmarked for manpower development. The 1st Aviation University in India is planned to be set up by HAL in Bangalore. Enhancing group support capabilities for better customer support is another target area. Enabling long term offsets is a problem area as right partners with long term staying power have to be identified. VALUE OF FIRM Revenue – 177.532614 billion (US$2.6 billion) Net income- 26.925169 billion (US$400 million) Total assets- 638.984194 billion (US$9.5 billion) Total equity- 150.146363 billion (US$2.2 billion)

6. T Suvarna Raju Chairman and Managing Director of Hindustan Aeronautics Limited Director of Design & Development, Managing Director of Helicopter Complex, Member of Design Policy Committee and Member of Technology Development Committee

7. C S R INITIATIVES Hindustan Aeronautics Limited (HAL) strive to accomplish their vision of becoming a significant global player in the aerospace industry and to address the concerns of economic status, environment and well being of the society through CSR initiatives. CSR Projects to be implemented by HAL at various Divisions, during- 2014-15 TOTAL PROJECTED EXPENDITURE FOR 2014-15 FROM AERDC, DESIGN COMPLEX = Rs. 20.43 LAKHS. FOR – 1. Rehabilitation on of Children with Special needs 2. Support for the Acute Treatment of Needy Patients with Gullian Barre Syndrome (GBS)

8. TOTAL PROJECTED EXPENDITURE FOR 2014-15 FROM BANGALORE COMPLEX = Rs. 4690 LAKHS FOR – Establishment of 6MW wind power plant 2. For funding Kumudhavathi project i.e. rejuvena on of water body (1.22 crores X5 mini water shed) 3. Skill Development/ Voca􀀌onal Training - (Unit of measurement: No. of youth to be trained) & Medical camp Solar ligh􀀌ng and road in 5 villages (in Pavagada Taluk) 5. For funding MNRE for taking up rural Electrifica on

9. TECHNICAL AND OTHER COLLABORATION JV Partners & Shareholding Pattern BAeHAL Software Ltd , BAe Systems PLC,UK - 11% BAe HAL Employees - 40% Welfare Trust, India HAL - 49% Purpose of JV Indo Russian Aviation Ltd Russian Firms RAC- MiG, - 31% Ryazan SIP, - 10% Aviazapchast Plc,- 6% Design, develop & market Software, Firmware and Computer programmes and systems incorporating them and to provide consultancy in the field of computer technology. Supply of all types of Aircraft (Russian Origin) Engines, Accessories, Aggregates, Systems & Spares of all kinds of aviation equipment. Snecma HAL Aerospace Pvt. Ltd Snecma, France - 50% HAL – 50% To establish a Center of Excellence for production of Precision Aero Engine components and assemblies as an Export Oriented Unit.

10. HALBIT Avionics Pvt. Ltd Bangalore Elbit Systems, - 26% Israel Merlin Hawk - 24% Associates, India HAL – 50% Design , Development & Marketing of aircraft simulators & all related applications for Indian & International markets. Integrated logistics support & maintenance services throughout the life cycle of products to the customers in Indian & International markets. HAL Edgewood Technologies Private Ltd, Edgewood Ventures - 26%,LLC, USA Edgewood Technologies Pvt Ltd, India - 24% HAL – 50% Application through development / acquisition of cutting edge technologies. Phase I 3D technology for: i) Memory modules ii) System in package modules iii) DC / DC Converters IV) Charge-coupled Device (CCD) / Cameras for space application Tata HAL Technologies Ltd, TATA Technologies - 50% Ltd, India HAL – 50% Work packages related to engineering design services in aero structures and also the captive offshore and onsite workload from OEMs including offset programme

11. Organisational Structure HAL has evolved strategic partnerships with DRDO Labs, premier academic institutions to foster country’s advancement in the field of Research & Technology Development. It is one of the few corporate giants in Asia whose capabilities span the entire range of activities from product conception to after sale support. HAL is also involved in the manufacture and assembly of structures required for India's space programs . HAL has launched “Make in India” e-portal which would attract private vendors to take up indigenization of various systems , sub-systems and facilitate to maximize outsourcing of manufacturing activities and be a significant contributing factor for the success of “Make in India” mission.

12. HAL’s Board of Directors T. S uvarna Raju Chairman & Managing Director Air Marshal S.B.P. S inha Deputy Chief of Air Staff Kamlesh K. Pant Joint Secretary (Aerospace ) P.R. Sharma Independent Director S hri V. M. C hamola Director (HR) D r . A. K. M ishra Director (Finance ) S hri S . S ubrahmanyan Director (Operations) Dr . Arun Kumar Jain Independent Director Air Marshal (Retd.) D.K . P ande Independent Director

13. Corporate Organisation

14. New Initiatives Formulation of a comprehensive R & D Policy addressing all the aspects to facilitate effective R & D ecosystem for Design & Development of technologies to develop product and services through creative and innovative R & D efforts. A society has been registered for formation of Corporate Meta University for carrying out industry oriented technological research in aeronautical sector . HAL has launched “Make in India” e-portal which would attract private vendors to take up indigenization of various systems, sub-systems and facilitate to maximize outsourcing of manufacturing activities and be a significant contributing factor for the success of “Make in India” mission . The locations where the manufacturing plants are operated by HAL include Nasik, Korwa, Kanpur, Koraput, Lucknow, Bangalore and Hyderabad.

15. Features of HALs Organisational Structure It provide basic frameworks to help operations proceed smoothly and functionally. Types of organizational structures include functional, divisional, matrix, team, network, and horizontal structures. Span of Control : It is used as a means of ensuring proper coordination and a sense of accountability among employees. Departmentalization : P rocess of grouping individuals into departments and grouping departments into total organizations. Centralization: It occurs when decision-making authority is located in the upper organizational levels . It promotes workplace harmony among workers and reduces the cost of production. Decentralization : Decentralization occurs when decision-making authority is dispersed among the lower organizational levels.

16. MAJOR COSTOMERS DOMESTIC COSTOMERS Indian Air Force Indian Army Indian Navy Indian Coast Guard Indian Space Research Organisation Defence Research & Development Organisation Ordnance Factory Board International Customers Airbus Industries, France Boeing, USA Coast Guard, Mauritius Nepal Army, Nepal Royal Air Force, Omen Vietnam Air Force, Vietnam

17. Fighter aircrafts Helicopters Trainer aircraft Power Plant Avionics System And Accessories PRODUCTS

18. AIRCRAFT HALICOPTERS POWER PLANT

19. AEROSPACE System and Accessories Avionics Materials

20. AI RCRAF T TEJAS

21. Light Utility Helicopter Helicopter

22. Agricultural OR Utility Aircraft HA-31 Basant

23. HJT-16 Kiran Trainer Aircraft Hindustan HT-2

24. Hawk- Advanced Jet Trainer AI RCRAF T

25. Avionics

26. Manufacturing Plants..... Nasik Korwa Kanpur Koraput Lucknow Banglore Hydrabad

27. SLOGAN Asia’s Premier Aerospace Complex

28. logo

29. FINANCIAL

30. Total turnover

31. Year Total Salse In Crore Profit       2011-2012 14204 3328 2012-2013 14324 3497 2013-2014 15128 3578 2014-2015 15622 3173

32. Current Equity:   120.50 Crore From Year To Year Class Of Share Authorized Capital (Crores) Issued Capital (Crores) Paid Up Shares (Nos) Paid Up Face Value Paid Up Capital (Crores) 2009 2010 Equity Share 160.00 120.50 120,500,000 10.00 120.50 2008 2009 Equity Share 160.00 120.50 120,500,000 10.00 120.50 2007 2008 Equity Share 160.00 120.50 120,500,000 10.00 120.50 2000 2002 Equity Share 160.00 120.50 120,500,000 10.00 120.50 1993 1995 Equity Share 160.00 12.50 1,250,000 100.

33. Current Equity:   120.50 Crore From Year To Year Class Of Share Authorized Capital (Crores) Issued Capital (Crores) Paid Up Shares (Nos) Paid Up Face Value Paid Up Capital (Crores) 2009 2010 Equity Share 160.00 120.50 120,500,000 10.00 120.50 2008 2009 Equity Share 160.00 120.50 120,500,000 10.00 120.50 2007 2008 Equity Share 160.00 120.50 120,500,000 10.00 120.50 2000 2002 Equity Share 160.00 120.50 120,500,000 10.00 120.50 1993 1995 Equity Share 160.00 12.50 1,250,000 100.00 12.50 Capital Structure

34. Governance

35. Governance refer to all process to governing whether undertaken by government , by market or network formal or informal organization. It may be through laws , norms, power.

36. PHILOSOPHY HAL is belongs to aerospace and military industry. HAL was established as Hindustan Aircraft in Bangalore in 1940 on 23 Dec 1940. The company philosophy on corporate governance is based on principle of transparency, compliances of law. HAL usually produce the aerospace related parts. In 1943 the Bangalore factory was handed over to the United States Army Air Forces but still using Hindustan Aircraft management. The company vision is to become significant global player aerospace industry.

37. CRISIL RATING It is a credit rating information of service of India ltd. It is a global company that provides research ,rating and policy services. Instrument category Rating Rating outlook  Long term CRISIL AAA Stable Short term CRISIL A1+ Stable

38. Scam INVOLVED Officer exposed fraud at HAL Hindustan Aeronautics Ltd (HAL) responding to a series of queries linked to the multi-crore fraud in its Aerospace Division, orchestrated by contract worker C Rajanna. HAL deputed V M Chamola, Director (Human Resources), to explain its official version after ‘Express’ exposed the scam. Both the HAL and the police kept the fraud details under wraps for over two months.

39. CONTROVERSY HAL needs an overhaul HAL was established with the hope of making India self-sufficient in the manufacture of military aircraft. The government backed it with liberal funding but the company never took off as desired . After 38 years with Hindustan Aeronautics Ltd, the aerospace giant’s chairman and managing director, Ashok Nayak , will step down on October 31. There has been controversy on his successor, with the Air Force proposing an air marshal, a sidelined HAL director going to court, and the government finally choosing R K Tyagi, the current chief of p awan Hans Helicopters .

40. AWARDS 2009-10 Golden Award for Quality and Business Prestige from Other ways Management Association Club, France Performance Excellence Award -2009 (Organization) for the year   2008-09 by Institution of Industrial Engineering. 2010-11 Regional Export Award” from EEPC India for the year 2009-10. Foundry and Forge Division, Bangalore. First Prize for the Best Exhibition Stall in the International Conference and Exhibition (INCAL) on Aluminum, held from 6 Dec to 8 Dec 2011 at Hyderabad for displaying high end technologies, Capabilities and its products

41. 2015-16 Four Quality Circles won the “Gold Category” Award from CCQC Bangalore. International Aerospace Awards (instituted by SAP Media Worldwide Ltd) as mark of recognition to the Indian Industry for excellence in innovation, indigenous technology.

42. Thank you