HAL registers turnover of Rs 21,100 crores, finishes producing all SU-30MKI fighter jets

Bengaluru, April 1: The state-owned Hindustan Aeronautics Limited (HAL) reported on Tuesday that it has recorded a turnover of over Rs. 21,100 crores ($3 billion) including provisional and unaudited for the financial year ending on 31 March 2020. It has posted revenue growth of around 7% during 2019-20 for the second year consecutively compared to 3.8% during 2017-18.

 

 

The company stated that it has completed the production of all Su-30MKIs contracted to it by the Indian Air Force (IAF) during the current year. It was producing 272 Su-30MKI fighter jets on a license from Russia’s United Aircraft Corporation. In addition to that, the company has got a few more orders for the multi-role fighter jets.

 

 

IAF chief Air Chief Marshal RKS Bhadauria, in a media interaction in October 2019, confirmed that the additional Sukhoi-30MKI fighters would be built by HAL in Nasik. “We are moving towards ordering 12 more Sukhoi-30s. Whether we need some more in lieu of aircraft that are going to get phased out from 2025 onwards… we will have to take a look later. But at the moment, 12 is what is being followed up straight away," he said.

 

HAL which is assembling each aircraft at $70.3 million, also expects to continue the Nasik facility for the assembly of additional Su-30MKIs for the IAF. HAL has set up a Su-30 (MKI) Refuelling and Overhaul (ROH) project store facility in Nasik city in Maharashtra state in 2014.

 

This financial growth came in the wake of 31 new aircraft and helicopters, 117 new engines and overhaul of 199 aircraft and helicopters and 490 engines. It has managed to sustain the growth and turnover in the current circumstances due to uniform production and project execution measures taken up by the company.

 

"During the financial year, the company besides achieving all the physical and financial targets has also been maintaining uninterrupted supplies and services to the defence forces in-spite of various constraints including cash flows. This has encouraged us to focus more on cost optimization measures including indigenisation of various components, increasing outsourcing efforts and rationalisation of manpower" said Shri R Madhavan ,CMD HAL.

 

It was reported last year that the state-owned firm had requested that the Defence Ministry provide an additional order for the assembly of 72 Su-30MKI fighters for about $5 billion.

 

HAL stated along with additional Su-30MKI orders and the expected order for 83 domestically made MK1A LCA which was cleared by Defence Acquisition Council and 15 LCH limited series production aircraft will likely to attain a healthy position during the next financial year 2020-21.

 

The IAF chief also provided details on upgrading the Sukhoi-30MKI with modern “radar and weapons capabilities and also tackling obsolescence management and electronic warfare aspects". Earlier this year, the IAF commissioned its first squadron of Su-30MKI with the BrahMos-A (Air) supersonic cruise missiles in the southern part of the country to counter threats emanating from the Indian Ocean Region.

 

HAL has said that the avionics upgrade of the SU-30MKIs and BrahMos missile modifications would be a game-changer and is important for the future growth of the company. Currently, the Indian Air Force has been facing a shortage of over 250 fighter jets against a required strength of 42 squadrons (18-20 fighter jets in each).

 

On the other hand, HAL has also contributed Rs. 26.50 crores to PM CARES fund to fight against the coronavirus pandemic and has also informed they are paying salaries regularly to their employees amid the lockdown.