After bagging the largest-ever indigenous defence procurement deal to procure 83 indigenously-developed LCA Tejas for Indian Air Force worth `48,000 crores, ET NOW spoke to R Madhavan, CMD, Hindustan Aeronautics who said that the contract valued at `36,000 cr for the company for LCA Tejas For Indian Air Force.
The deal will give the company and 560 vendors a major boost. HAL is equipped to meet timelines by increasing aircraft capacity to 16 Aircraft Per Year from 8 and is setting up phase II infra in Bangalore and 5 major suppliers that they have partnered with. Mr. Madhavan said that HAL is looking at order book over `1.5 lk cr, currently at `90,000
Expect 12% YoY revenue growth from 2025 onwards. They have orders for helicopters in the pipeline, which will come by March and new projects coming in from DRDO and hope that revenue growth will be strong. Madhavan believes Atmanirbhar Bharat has boosted vendors coming in the aeronautics sector. “We cannot only depend on Budgetary support, we need to look at exports. Continuity of orders needs to be visible to private players to invest in capital to set up the facility.”
In order to become at par with global defence majors, Madhavan says that we need quicker order placement and delivery process in the defence sector. “India’s defence budget as a share of its GDP is shrinking and will continue to decrease. Shortage of trained manpower for new technologies which needs to be looked at. Budgetary issues have largely been rectified, within 1-2 years assumed will get paid for delivery of products and services,” he says. HAL will improve its position as a global defence equipment supplier in the long run according to him.