Hindustan aeronautics limited, nasik division

Industrial Visit Project (BBA):
Hindustan aeronautics limited, nasik division

1. HINDUSTAN AERONAUTICS
LIMITED, NASIK DIVISION
INDUSTRIAL VISIT
30/12/2008

2. INTRODUCTION
Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964.
Aeronautics India Limited and Aircraft The Company was formed by the merger
of Hindustan Aircraft Limited with manufacturing Depot, Kanpur. The
Company traces its roots to the pioneering efforts of an industrialist with
extraordinary vision. the late Seth Walchand Hirachand, who set up Hindustan
Aircraft Limited at Bangalore in association with the erstwhile princely State of
Mysore in December 1940. The Government of India became a shareholder in
March 1941 and took over the Management in 1942.Today, HAL has 19 Production
Units and 9 Research and Design Centers in 7 locations in India. The Company has an
impressive product track record - 12 types of aircraft manufactured with in-house R & D
and 14 types produced under license. HAL has manufactured over 3550 aircraft, 3600
engines and overhauled over 8150 aircraft and 27300 engines.
HAL has been successful in numerous R & D programs developed for both
Defence and Civil Aviation sectors. HAL has made substantial progress in its
current projects:
· Dhruv, which is Advanced Light Helicopter (ALH)
· Tejas - Light Combat Aircraft (LCA)
· Intermediate Jet Trainer (IJT)
· Various military and civil upgrades.
Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in
March 2002, in the very first year of its production, a unique achievement.

3. 38
ABOUT HAL NASIK
HAL has played a significant role for India's space programs by
participating in the manufacture of structures for Satellite Launch
Vehicles like
· PSLV (Polar Satellite Launch Vehicle)
· GSLV (Geo-synchronous Satellite Launch Vehicle)
· IRS (Indian Remote Satellite)
· INSAT (Indian Satellite)
HAL has formed the following Joint Ventures (JVs) :
· BAeHAL Software Limited
· Indo-Russian Aviation Limited (IRAL) National
· Snecma HAL Aerospace Pvt Ltd
· SAMTEL HAL Display System Limited
· HALBIT Avionics Pvt Ltd
· HAL-Edgewood Technologies Pvt Ltd
· INFOTECH HAL Ltd
Apart from these seven, other major diversification projects are
Industrial Marine Gas Turbine and Airport Services. Several Co-
production and Joint Ventures with international participation are

4. under consideration.
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HAL's supplies / services are mainly to Indian Defence Services,
coast Guards and Border Security Forces. Transport Aircraft and
Helicopters have also been supplied to Airlines as well as State Governments of India. The
Company has also achieved a foothold in
export in more than 30 countries, having demonstrated its quality and
price competitiveness.
HAL has won several International & National Awards for
achievements in R&D, Technology, Managerial Performance, Exports,
Energy Conservation, Quality and Fulfillment of Social Responsibilities.
· HAL was awarded the “INTERNATIONAL GOLD MEDAL AWARD” for Corporate
Achievement in Quality and Efficiency at the International Summit (Global Rating Leaders
2003), London, UK by M/s Global Rating and UK in conjunction with the International
Information and Marketing Centre (IIMC).
· HAL was presented the International - “ARCH OF EUROPE” Award in Gold Category
in recognition for its commitment to Quality, Leadership, Technology and Innovation.
· At the National level, HAL won the "GOLD TROPHY" for excellence in Public Sector
Management, instituted by the Standing Conference of Public Enterprises (SCOPE).
The Company scaled new heights in the financial year 2006-07 with a turnover of Rs.
7,783.61 Crores

5. 40
PRODUCTS MANUFACTURED
BY HAL NASIK DIVISION

6. 41
DIVISIONS OF HAL



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7. 43
FINANCIAL HIGHLIGHTS
Hindustan Aeronautics Limited (HAL) has cruised past the Rs.8, 500
Crore mark for the first time with a sales turnover of Rs.8625.33
crores ($2.15 billion) during the Financial Year 2007-08. The profit of
the Company (Profit Before Tax) soared to Rs.2164.23 crores, which is
an increase of 24.08% over the previous year’s performance.
The highlights are given below :
Rupees in Crores
Particulars2006-072007-08
Growth over
Previous Year
Sales 7783 8625 10.82%
VOP 9202 8791 -4.46%
Profit before
tax
1744 2164 24.08%
Profit after
tax
1149 1632 42.04%
Gross Block2081 2255 8.36%

8. RESEARCH & DEVELOPMENT CENTRE
R & D takes place in following areas:-
·AIRCRAFT
·ROTARY WING
·AIRCRAFT UPGRADE
·TRANSPORT AIRCRAFT
·ENGINE AND TEST BOARD &STRATEGIC ELECTRONICS
·AEROSPACE SYSTEMS AND EQUIPMENTS
·CENTRAL MATERIALS AND PROCESSESS LABORATORY AND NDT CENTRE.
R & D in detail:-
In the year 1951, when HT-2 the first indigenously designed primary trainer made its
first flight, it heralded the era of Research & Design at HAL this aircraft served as the
back bone of IAF's training fleet for more than three decades. Subsequently, HAL's
R&D capabilities have grown from strength to strength and have been harnessed to
achieve greater heights of self reliance. The Advanced Light Helicopter - ALH
(DHRUV) is the latest new generation helicopter designed and developed by HAL. It
is under production since 2002. The test flights on Technology Demonstrators (TD-I
and II) and Prototype Vehicles (PV-1 and 2) of Light Combat Aircraft - LCA (Tejas) are
progressing satisfactorily. The Intermediate Jet Trainer (IJT) is undergoing test
flights. In addition, HAL has successfully completed many systems updates and
integration tasks. HAL has 9 Research & Design Centre’s engaged in the design and
development of combat aircraft, helicopters, aero engines, gas turbines, engine test
beds, aircraft communication and navigation systems and mechanical system
accessories. The indigenously upgraded MiG-27M aircraft has received Initial
Operation Clearance (IOC) and the first batch of aircraft has been delivered. First
flight test on Jaguar Nav WASS upgraded aircraft with indigenously developed
mission computer with weapon delivery capabilities has been carried out and
retromod of fleet has been taken up. Equipped with the latest facilities, the
company is backed by high profile, highly skilled manpower with an impressive

9. track record of more than five decades of rich experience in all disciplines of
aeronautics.
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EXPORTS BY HAL
IMPORTS BY HAL
HAL has collaboration with Russia in order to
produce SUKHOI-31 . It import spare parts,
technology and technicians from Russia and
assemble them in HAL.

10. 45
HUMAN RESOURCE DEVELOPMENT

Emanating from the Company's Mission Statement, the strategic Human Resource
Development (HRD) goal of HAL is to create an atmosphere of technological and
managerial excellence to become a globally competitive Aerospace Industry. With
the changing environment, rapid technological changes characterized by a
paradigm shift from licensed production to R&D based production duly balanced
with co-development / co-production, technological up gradation etc., greater
customer demand, focused diversification to civilian and export markets, the
overall objective of the Human Resource Development plan is to build a vibrant and learning
organization, so as to meet the challenges of quality and excellence, recruitment and retention of competent
human resources and develop high commitment and a sense of belongings to the Company. Accordingly, the
Company's HR Vision, Mission, Objectives, Strategies and Policies have been identified and indicated as
follows:-
VISION
"To make HAL a dynamic, vibrant, value-based learning organization with human
resources exceptionally skilled, highly motivated and committed to meet the
current and future challenges. This will be driven by core values of the Company
fully embedded in the culture of the Organization"
MISSION
Enable all those working for HAL to give their best to ensure their all-round growth
as well as that of the Organization
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11. OBJECTIVES
·To ensure availability of Total Quality People to meet the Organizational
Goals and Objectives
·To have a continuous improvement in Knowledge, Skill and Competence
(Managerial, Behavioral and Technical)
·To promote a Culture of Achievement and Excellence with emphasis on
Integrity, Credibility and Quality
·To maintain a motivated workforce through empowerment of Individual and
Team- building & to enhance Organizational Learning
·To play a pivotal role directly and significantly to enhance Productivity,
Profitability and improve the Quality of Work Life
STRATEGY
·To be in total alignment with Corporate Strategy
·Maintain Human Resource at optimum level to meet the objectives and goals
of the Company
·Be competent in Mapping, Analysis and Up gradation of Knowledge and
Skills including Training, Re-training, Multi-skilling etc
·Cultivate Leadership with Shared Vision at various levels in the Organization
·Focus on Development of Core Competence in High-Tech areas
·Build Cross-functional Teams
·Create awareness of Mission, Values and Organizational Goals through out

12. the Company
·Introduce / Implement personnel policies based on performance.
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FOCUS OF HUMAN RESOURCE POLICY
·Competence Building
·Commitment
·Motivation
·Employee Relations
In the backdrop of the above, the focus of Human Resource Development
initiatives at HAL emphasize the following:
I ) MAN POWER PLANNING
·Out sourcing of low tech and medium tech jobs
·Fresh induction only in critical / highly specialised areas based on
requirements due to increase in work load and super annuation profile
(Annexure-II). In the Workmen Cadre, induction will be restricted to Direct
Workmen only
·Improving the existing qualification profile by focusing on induction of
professionally qualified personnel and diploma holders
Hence focus of recruitment would be to recruit people with a combination of
knowledge, skill, experience and attitude in line with the organisational
requirement through appropriate manpower plan both short term (contract

13. appointments) and long term recruitment programme.
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II ) TRAINING AND DEVELOPMENT
Training is one of the most important tools for developing human resource. Hence,
identification of training competency profile in terms of Vision, Mission of the
Company would be the strategic point of the training and development strategy of
the Company. The following objectives have been set in this regard:-
·To provide training to all employees at regular intervals in a plan period of 5
years
·Training to become an integral component of individual professional
evolution by:
oupdating knowledge to avoid obsolescence
oenhancing professional creativity
oenabling employees to shoulder higher responsibility
ocreating a business trend and strategic thinking to take up new business challenges
(creation of Centre of Excellence, etc)
The goals of training will be to progressively achieve 7 days training per employee
per year with a budget of 2% of annual Wage Bill.
Keeping in view the organisational requirement and goals and objectives of

14. training, the following have been identified as the key focus areas of training:
·Technology
·Tooling, Quality
·Information Technology
·Further, to facilitate the development of soft skills (change of mind-set,
managerial development etc.).
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III ) PERFORMANCE APPRAISAL :
Appraising people for meeting the Company's goal would be the prime focus of
performance management. The new Performance Appraisal System based on
work planning and commitment (mutually agreed tasks) , self-review and
performance analysis, performance review and feedback would ensure that the
focus would be on value adding activities rather than on routine activities which
bear no relationship with the Organisation's goals and objectives. Identification
of low performers and resultant corrective action through out the Company
would be given priority. Similarly, faster career growth opportunity would be
provided to high performers.
IV ) REWARD SYSTEM
The focus of the reward system in the Company is to promote team work and
cultivate a sense of achievement and excellence in the Organization. This is in
addition to the existing scheme of reward for an individual who innovatively and
creatively makes exemplary contributions in the key thrust areas of the Company

15. that would lead to its achieving overall excellence. Coupled with the above,
schemes like "Inter Divisional Competition" and "Profit Sharing Scheme" have been
institutionalized in the Company for team reward.
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V ) SCHEME FOR LEARNING AND CERTIFICATION FOR EXECUTIVES
A "Learning Organization" is essential for survival in the present era of
Liberalization, Privatization and Globalization. Therefore, "Knowledge" is the only
core competence of Organizations for coping with changes. Since individual knowledge is the
starting point for organizational knowledge, it is only the employees who can convert knowledge into efficient
actions. In line with the above philosophy, among other initiatives like institutionalizing Learning Centres in
Divisions etc., HAL has also introduced the scheme for Learning and Certification for executives as a starting
point for building individual knowledge. The scheme inter-alia provides an opportunity for the Junior and
Middle Management Cadre Executives to broaden their perspective by not only learning about all functions
and procedures in their respective disciplines but also in related areas and overall knowledge about the
Organization and its environment. So far, approximately, 45% (both for "O" & "A" level) of executives have
been certified (Annexure IV). It is proposed to expand the coverage of this scheme further, if required, by
linking the scheme to some kind of reward mechanism.Lastly, the HRD Plan will also include time-to-time OD
Interventions to address specific requirement of the Company.

16. 51

CONCLUSION
Hindustan Aeronautics Limited has world class infrastructure. They deal with
manufacturing of sophisticated products with ease. Although, they don’t have competitors in the
market, they maintain quality of the product.
They follow autocratic management with certain set of rules and principles. They deal with current era of
globalization without harming the environment.
Learning took a ways of fun, particularly with the air show. After the visit, we firmly believed that safety of our
country is in trusted hands as they provide supersonic aircrafts to INDIAN AIRFORCE.