Hindustan Aeronautics Limited (HAL) is an Indian state-owned aerospace and defence company established in 1940 in Bangalore, Karnataka. It was initially established as Hindustan Aircraft by Walchand Hirachand with an aim to manufacture aircraft in India. Over the years, HAL has expanded its capabilities to include the design, development, manufacture, repair, and overhaul of aircraft, helicopters, engines, avionics, and accessories. It is involved in various strategic partnerships and joint ventures with domestic and international partners. HAL has various production and manufacturing facilities across India and supplies to both domestic and international customers, including the Indian Armed Forces.

2. 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

11. 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)

12. TOTAL PROJECTED EXPENDITURE FOR 2014-15 FROM
BANGALORE COMPLEX = Rs. 4690 LAKHS
FOR –
1. 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
4. Solar ligh􀀌ng and road in 5 villages (in Pavagada Taluk)
5. For funding MNRE for taking up rural Electrifica on

13. 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.

14. 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

15.  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.

16. T. Suvarna
Raju
Chairman &
Managing
Director
Air Marshal S.B.P.
Sinha
Deputy Chief of Air
Staff
Kamlesh K. Pant
Joint Secretary
(Aerospace)
P.R. Sharma
Independent Director
Shri V. M.
Chamola
Director (HR)
Dr. A. K.
Mishra
Director
(Finance)
Shri S.
Subrahmanyan
Director (Operations)
Dr. Arun Kumar
Jain
Independent Director
Air Marshal (Retd.)
D.K. Pande
Independent Director

18. Corporate Organisation

19. • 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.

20. 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 : Process 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.

21.  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

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

23. AIRCRAFT
HALICOPTERS

24. AEROSPACE System and Accessories
Avionics Materials

25. AI
R
C
R
A
F
T
TEJAS

26. Helicopter

27. HA-31 Basant

28. Trainer Aircraft

33. logo

35. 0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Total Salse In Crore
Profit

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

37. Current Equity: 120.50 Crore
Fro
m
Year
To
Year
Class Of
Share
Authorize
d 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.

38. Current Equity: 120.50 Crore
Fro
m
Year
To
Year
Class Of
Share
Authorize
d 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

43. Instrument category Rating Rating outlook
Long term CRISIL AAA Stable
Short term CRISIL A1+ Stable

45. 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 pawan Hans
Helicopters.