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State-owned fighter jet maker Hindustan Aeronautics Ltd has filed to launch an initial public offering as the government looks to sell 10.8 percent stake in India’s largest aerospace company. It plans to raise up to Rs 1,500 crore in the share sale.
HAL is crucial to Prime Minister Narendra Modi's plan to cut dependence on defence imports. The government is pushing local manufacturing by encouraging private companies to tie up with overseas manufacturers. Orders could cross $200-billion over the next decade, according to research and brokerage firm Bernstein.
Here's what HAL makes...
HAL had an order book of Rs 63,333 crore at the end of July, mostly for 35 Sukhoi Su-30 MKIs and 73 Dhruv Advanced Light Helicopters, according to its draft red herring prospectus. These are to be delivered over the next three years.
Current Orders:
Future Projects:
The company’s operations are organised into five categories...
Together, these include 20 production facilities and 11 R&D centres across India.
HAL’s biggest project of executing the Sukhoi order, which contributed 44 percent to its revenue in the year to March, is nearing completion, according to its draft red herring prospectus. The company has already supplied about 190 of the 222 fighter jets and the rest will be delivered in three years. The company makes the Sukhois at its Nashik facility.
HAL is making the light combat aircraft Tejas, which got initial operational clearance in December 2013 and awaits the final nod. The Indian Air Force accepted two Tejas aircraft in March and April last year. HAL has set up infrastructure to produce eight planes a year and is looking to double the output.
It’s also developing a drooped-nose version to meet the Navy’s demand, along with the landing gear and equipment required for operations from an aircraft carrier.
(This article was originally published in BloombergQuint.)
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