Вы находитесь на странице: 1из 40



The field of Aviation has been investigated for millennium but modern Aviation began with
the first powered flight on 16th December 1903 by the ‘WRIGHT BROTHERS’. From there
on, Aviation has grown to be one of the most existing, diverse and fast growing field of

From the hot air balloons of 18th century to the first maned machine to the moon on
Apollo 11 to the new and exiting air craft being developed by the companies like Boeing,
Airbus and Bombardier, aero space has come a long way over a century.

Way back centuries, people started thinking of ways to fly in the Greek legend, Icarus and
his father Daedal ,built wings of features and wax and flew out with a person, Icarus flew
close to the Sun, the wax melted and he fell in the Sea and drowned .

One of the earliest Scientist to aeronautics was LEANARDO DA VINCI. Leonardo

Studied flights of birds in developing engineers schematics for some of the earliest flying
machines in the last 15th century A.D; these schematics failed as practical aircraft.

The Aerospace and Defense industry was struggling to maintain profitability even
before Sep 2001, and fears of further terrorism, the conflicts in Afghanistan and Iraq, and a
weak economy combined to devastate the commercial aerospace industry over the
ensuring years.

On the other hand the wars in Afghanistan and Iraq bolstered the coffers of many defense
companies; belt tightening may be on the way.

The mother of all defense deals occurred in 2001 When Lockheed beat out Boeing
for the $200 Billion joint strike fighter contract, the largest defense contract ever. Spread
out almost 30 years, it may be the last deal for drones (as evidence in Afghanistan with the
use of general atomics predator) it expected to continue supplanting the need for the more
expensive manned aircraft and making it unnecessary to risk pilots lives in combat. In the
interim, the soaring costs in Iraq have also put a damper on some other major projects.

In 2004 the US army cancelled the planned $40 billion apache reconnaissance
Helicopter program; early in 2005 there was talk of scaling back the F/A-22 Raptor program
and of reducing the number of c-130J aircraft on order. A desire to be smart, fast, and
mobile has replaced the “more and bigger” doctrine of the cold war.

To the end several companies including Lockheed Martin, Northrop Grumman

and General Dynamics have invested in hardware and software companies that focus on
Government Customers.

The top defence contractors are Lockheed Martin, Boeing Northrop Grumman,
and BAE systems, Raytheon, GENERAL Dynamics, and EADS.

On the commercial side, airlines- by far the biggest customers in the sector have lost
Billions since 2001.
By way of illustration, the top nine airlines lost$10 billion in 2002, almost $6 billion in 2003,
and about $4 billion in 2004 and both UAL (the parent of United Airlines) and US AIRWAYS
have filed for bankruptcy protection.

As mentioned previously, September 11 and subsequent travel fears dealt a devastating

blow to a commercial aircraft market that was already reeling from a market slow down.

That market, which accounts for about 40% of aerospace and defence industry spending, is
divided in to our segments: -

Ø Large Commercial Aircraft (planes of 100 seats and more)

Ø Maintenance repair and Overhaul (MRO), HAL Aircraft division

Ø Jet engines and business

Ø Regional aircraft (less than 100 seats)

In 2001, Boeing and Airbus, the world’s only large commercial aircraft market,
saw market plummet by 45% and 28% respectively.

Airbus recently surpassed Boeing in orders, but the formers 2002 deliver dropped
7% from 2001.Boeing meanwhile experienced a staggering 28% decline in deliveries from

AS a result of the drastic fall-off in business, Boeing cut about 30000 jobs or
30% of it commercial aircraft workforce in 2002.

Aircraft orders picked up in 2003 and 2004 as Boeing an airbus continued to

duke it out for airline orders. Boeing is working on its long-range, fuel-efficient, mid-sized,
7E7 Dream Liner (due in 2008), 550-passenger behemoth. Airbus then upped the ante by
announcing that it would build the A530 (due in 2010) to compete directly with Boeing 7E7.

The Maintenance repairs and overhauls (MRO), jet engine, and business and
regional aircraft markets have suffered right along with airlines and large commercial
aircraft makers.
The biggest regional aircraft makers are Bombardier, Gulf Stream and
Textron’s Cessna Unit., GE Aircraft Engines, Rolls Royse, and Pratt and Whitney are the
three largest jet engine makers. The space market is made up of two primary segments;
satellite and rocket manufacturing and launch services.

The major players include Boeing, Lockheed Martin, Northrop, Grumman,

Alcatel Space, Astrium, and Orbital Science. Expectations for the long-term profitability of
the space market continue to outstrip the short-term realities, but companies continue to
invest in this.

Even before the terrorist attacks, Boeing for example, was placing more
emphasis on
Market in its strategic thinking, and proposed a sweeping overhaul of the world’s air traffic
control system.

The main activity of the division is manufacturing of fighter aircrafts like Jaguar, Hawk,
Lakshya and landing gears for Dornier Aircraft and exports project like manufacture of
Boeing and airbus doors. It also manufactures materials for Indian Aerospace organization
such as ISRO, DRDO &NAL etc…

Aviation is one of the most significant technological influences of our times and empowers
the nation with strength.

It is a major tool for Economic development and has significant role in National security and
International RELATION. India has been fortunate to have started Aeronautics related
activities in 1940 with the establishment of HAL.

The aviation industry globally has many players. U.S Aircraft major players are:

1.Lockheed Martin is at the top of the list followed by

2. Boeing (U.S),

3.North Rop Grumman (U.S),

4. BAe Systems (U.K) and

5. Raytheon (U.S) are the top five dominated U.S aero space and defense majors.

The aviation industry comprises companies producing air craft, guided missiles, aircraft
engines, space vehicles, propulsion units and reduced parts. Aircraft overhaul, rebuilding
and parts are also included.

The aviation industry in India includes State owned entities and also number of Private
players. The ministry of civil aviation governs the aviation industry.

Hindustan Aeronautics, ranked 34th among the global league of top 50 aerospace
companies moving up since last years rank of 45.

In 2004 - 2005, the India share of the global aviation industry was US $36 Billion.

Aviation Industry in India is one of the fastest growing aviation industries in the world, with
the liberalization of the India aviation sector;

Aviation industry in India has undergone a rapid transformation. From being primarily a
government owned industry, the India Aviation Industry is now dominated by privately
owned full service air lines and low cost carriers.

Aviation Industry supplies services to the India are:

1. Indian Defense Services.

2. Coast Guards.

3. Border Security Forces.

Transport Aircraft and Helicopters have also been supplied to Airlines as well as State
Governments of India.

Top aviation companies in India

 Air Charter Services Pvt Ltd:

 Air Charters India:
 Air India:
 Aviation India:
 Indian Airlines:
 Deccan Aviation Ltd.:
 Jet Airways:
 Kingfisher Airlines:
 Paramount airways:

Private airlines account for around 75% share of the domestic aviation market.
Hindustan Aeronautics Limited (HAL)

Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The
Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India
Limited and Aircraft 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,
with the object of establishing an aviation industry that can manufacture, assemble and
Overhaul aircraft under license.

The Government of India became a shareholder in March 1941 and took over the
Management in 1942.

For six decades, HAL has spread its wings to cover various activities in the areas of design
and development, Manufacture and Maintenance of advanced fighters, piston and jet
engines trainer’s commercial aircraft, helicopters and associated Aero engines, aircraft
systems, equipment and avionics

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 Defense 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.
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 National Satellite)

HAL has formed the following Joint Ventures (JVs) :

• BAeHAL Software Limited

• Indo-Russian Aviation Limited (IRAL)
• Snecma HAL Aerospace Pvt Ltd
• SAMTEL HAL Display System Limited
• HALBIT Avionics Pvt Ltd
• HAL-Edgewood Technologies Pvt 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 under consideration.

HAL's supplies / services are mainly to Indian Defense 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 is India’s only Aircraft manufacturer and is the foremost aviation company in the
southern region.

Today the companies activities range from the design, repair and Overall the
maintenance and field support to:

1. Military, civil aircraft and Helicopters.

2. Aero engines, industrial and marine gas turbine engines.
3. Aircraft accessories, system and avionics.
4. Aerospace vehicles structure.

The Bangalore complex of HAL is the oldest and the largest group of aircraft and
engines factories of the company. The complex has its own airfield and comprises the
engine, aircraft, helicopter division, over all foundry and forge divisions.

The first helicopter type to be built at HAL Bangalore was the ALOUETTE ILL, later
names CHETAK.

From past 20 years, HAL’s Helicopter division produced 336 CHETAK‘s AND 246
CHEETAH helicopters and more than 200 Helicopters of both the types for the Indian Air
force , Navy, Army and coast Guards.

Production line of the HAL Dhruv at Bangalore

Hindustan Aeronautics Limited (HAL) is a premier aerospace company
under Ministry of Defense, Government of India, with its corporate office Bangalore.

HAL was established as Hindustan Aircraft in Bangalore in 1940

by Walchand Hirachand to produce military aircraft for the Royal Indian Air Force. The
initiative was actively encouraged by the Kingdom of Mysore, especially by the Diwan,
Sir Mirza Ismail and it also had financial help from the Indian Government. The organization
and equipment for the factory at Bangalore was set up by William D. Pawley of the
Intercontinental Aircraft Corporation of New York, who was an exporter of American aircraft
to the region. Pawley managed to obtain a large number of machine-tools and equipment
from the United States.

The British Government bought a one-third stake in the company by

April 194, as it believed this to be a strategic imperative. Later in April 1942, it bought out
the stakes of Walchand Hirachand himself and other promoters so that it can act freely.
The decision by United Kingdom was primarily motivated to boost British military hardware
supplies in Asia to counter the increasing threat posed by Imperial Japan during Second
World War. However, the Mysore Kingdom refused to sell its stake in the company but
yielded the management control over to the British Government. Thus, within 2 years of
establishment, it was nationalized.

Hindustan Aeronautics Limited (HAL) became an entity on 1st

October 1964 with the merger of Hindustan Aircraft Limited, a Bangalore-based private
enterprise with Aeronautics India Limited and the Aircraft Manufacturing Depot, Kanpur.
Adopting the slogan "Asia's Premier Aerospace Complex," India's aerospace and defence
major, Hindustan Aeronautics Limited (HAL), continues to take large strides in the sector
with every passing year. After India gained independence in 1947, the management of the
company was passed over to the Government of India and was renamed as Hindustan
Aeronautics Limited (HAL). Though HAL was not used actively for developing newer
models of fighter jets, the company has played a crucial role in modernization of the Indian
Air Force. In 1957 company started manufacturing Jet engines (Orpheus) under license
from Rolls-Royce at new factory located in Bangalore.

During the 1980s, HAL's operations saw a rapid increase which resulted in the
development of new indigenous aircraft such as HAL Tejas and HAL Dhruv. HAL also
developed an advanced version of the MiG-21, known as MiG-21 Bison, which increased
its life-span by more than 20 years. HAL has also obtained several multi-million dollar
contracts from leading international aerospace firms such as Airbus, Boeing and Honeywell
to manufacture aircraft spare parts and engines.

On the 2 April 1942 the government announced that the company had been nationalised
when it had bought out the stakes of Walchand Hirachand and other promoters so that it
can act freely. The Mysore Kingdom refused to sell its stake in the company but yielded the
management control over to the Indian Government. The company has been making
steady growth in financial terms over the years. The company enjoys the highest credit
rating by CRISIL and ICRA for short term and long-term debt Programs.

Hindustan Aeronautics Limited (HAL) has achieved sales turnover of Rs.11, 457 crores
during the Financial Year 2009-10.

The profit of the Company (Profit before Tax) soared to Rs.2, 688 crores.

The highlights are given below:

Rupees in Crores
Growth over
Particulars 2008-09 2009-10
Previous Year
Sales 10373 11457 10.45%
VOP 11811 13490 14.22%
Profit before tax 2335 2688 15.12%
Profit after tax 1740 1967 13.05%
Gross Block 2638 2934 11.22%


The Company's steady organizational growth over the years with consolidation and
enlargement of its operational base by creating sophisticated facilities for manufacture of
aircraft / helicopters, aero engines, accessories and avionics is illustrated in next page:














• Design and development of fixed and rotary wing aircraft, avionics and
• Design and exhibition of military as civil updates and modernization.
• Manufacture , maintenance , repair of :

 Fighter and trainer aircraft.

 Commercial and transport aircraft.
 Helicopter – civil and military.
 Industrial and marine gas turbines.
 Avionics.
 Accessories (Mechanical/Electronic).
 High technology casting, aircraft transparencies.
 Ground support equipment.
 Export of aero structure to leading world aircraft manufacturers for satellite
and launch vehicle.
 Software development for aero space applications.


“To make HAL a dynamic, vibrant, value – based learning organization with human
resource exceptionally skilled, highly motivated to meet the current and future challenges,
this will be driven by core values of the company fully embedded in the culture of the


“To become a globally competitive aerospace industry while working as an instrument for

achieving self-reliance in design, manufacture and maintenance of aerospace defense

equipment and diversifying to related areas, managing the business on commercial lines in

a climate of growing professional competence".


Aircraft division’s quality policy is “To manufacture and supply aeronautical products to
meet the customer’s requirements and to continuously improve quality in all products,
processes and services to ensure customer satisfaction”.

Quality objectives of company are:

1) Understanding and satisfying customer needs.

2) To design and approve standard in all direct and support activities.
3) Implementation of process control in all spheres of activities.
4) Operation of company wide continuous programs.
5) Develop Human resource through training and
involvement and motivation.

We are dedicated to building a relationship with our customers where we become partners in fulfilling
their mission. We strive to understand our customers ' needs and to deliver products and services that
fulfill and exceed all their requirements.


We are committed to continuous improvement of all our activities. We will supply products and services
that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use
as desired by our customers.


We believe that our success depends on our ability to continually reduce the cost and shorten the
delivery period of our products and services. We will achieve this by eliminating waste in all activities
and continuously improving all processes in every area of our work.


We believe in striving for improvement in every activity involved in our business by pursuing and
encouraging risk-taking, experimentation and learning at all levels within the company with a view to
achieving excellence and competitiveness.


We believe in achieving harmony in work life through mutual trust, transparency, co-operation,
and a sense of belonging. We will strive for building empowered teams to work towards achieving
Organizational goals.


We value our people. We will treat each other with dignity and respect and strive for individual growth and
realization of everyone's full potential.



The Company continued to maintain the highest credit rating of both, short-term as well as long-term
debt programmers, for Rs.450/-crores each from the Investment Information & Credit Rating Agency (ICRA)
and Credit Rating Information Services of India Limited (CRISIL).
Although yours is a ‘Zero-Debt’ Company, it has been availing Cash Credit facility from the Bankers
to meet its short-term requirements from time to time. This credit rating has enabled the Company to source funds
at the best possible rates, thereby improving the profitability.

The cash and bank balances, including short-term deposits at the end of the year under review
stood at Rs. 18657.64 crore against Rs. 19744.56 crores of the previous years.
The Company scaled new heights in the financial year 2006-07 with a turnover of Rs.7, 783.61 Crores.
Definition : Key result area

“Key results areas or KRA’s referred to general areas of output or outcomes for
which department’s roll is responsible”.
“KRA in simple terms may be defined as primary responsibilities of an
individual, the core area which each person is accountable.

Importance of KRA’s

1) Set goals and objectives.

2) Prioritize their activities, therefore improve their time and work
3) Make value added decisions.
4) Clarify roles of department or individual.
5) Focus on results rather than activities.
6) Communicate their roles, purposes to others.

Types of KRA’s

1) Training KRA’s.
2) Management KRA’s.
3) Purchasing KRA’s.
4) R & D KRA’s.
5) Administration KRA’s.
6) Finance KRA’s.
7) Human resource KRA’s.
8) Manufacturing KRA’s.
9) Marketing KRA’s.
10) Sales KRA’s.


§ Adherence to design specification and laid down procedures in all activities.

§ Continual improvement in all processes based on previous and customer feed back.

§ To empower the employees through and encouraging in quality circle/ small ground
activities and suggestion scheme.

§ To up keep and improve the infra structure to meet the requirements of process, people
and environment.

§ To ensure optimum utilization of resource and reduction of waste.

Following are the names of the various customers both in National & international level:

International Customers Domestic Customers

• Airbus Industries, France • Air India

• APPH Bolton, UK • Air Sahara
• BAE Systems, UK • Airports Authority of India
• Chelton, UK • Bharat Electronics
• Coast Guard, Mauritius • Border Security Force
• Corporate Air, Philippines • Coal India
• Cosmic Air, Nepal • Defence Research &
• Dassault Aviation, France Development Organisation
• Dowty Aerospace Hydraulics, • Govt. of Andhra Pradesh
UK • Govt. of Jammu & Kashmir
• EADS, France • Govt. of Karnataka
• ELTA, Israel • Govt. of Maharashtra
• Gorkha Airlines, Nepal • Govt. of Rajasthan
• Hampson, UK • Govt. of Uttar Pradesh
• Honeywell International, USA • Govt. of West Bengal
• Island Aviation Services, • Indian Air force
Maldives • Indian Airlines
• Israel Aircraft Industries, Israel • Indian Army
• Messier Dowty Ltd., UK • Indian Coast Guard
• Mistubishi Heavy Industries, • Indian Navy
Japan • Indian Space Research
• MOOG, USA Organisation
• Namibian Air Force, Namibia • Jet Airways
• Peruvian Air Force , Peru • Kudremukh Iron ore
• Rolls Royce Plc, UK Company ltd.
• Royal Air Force, Oman • NALCO
• Royal Malaysian Air Force, • Oil & Natural Gas
Malaysia Corporation Ltd.
• Royal Nepal Army, Nepal • Ordnance Factories
• Royal Thai Air Force, Thailand • Reliance Industries
• Smiths Industries, UK • United Breweries
• Snecma, France
• Strongfield Technologies, UK
• The Boeing Aircraft Company,
• Transworld Aviation, UAE
• Vietnam Air Force, Vietnam
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 Defense and
Civil Aviation sectors.

HAL operates both domestically and Internationally:

 Indian Air Force
 Indian Navy
 Indian coast guard
 Defense Research & Development organization
 Indian Space Research organization
 Bharat Electronic Limited
 National Aerospace Laboratories

 Air bus, France
 Boeing, USA
 BAe system, UK
 Danault Aviation, France
 Israel Aircraft Industries, Israel
 Mitsubishi Heavy Industries, Japan
 Royal Air force of OMAN
 Air Mauritius
 Airline Operations in South Asian Countries.

HAL’s major exports during the year included A – 320 passenger doors to airbus, HAL
Aircraft division 777 uplock equipment to Russia, Spares and services to Nepal, Malaysia,
Thailand, Zimbabwe, Mauritius and Oman.HAL has also initiated measures to identify and
establish strategic alliances and joint ventures with global aerospace companies who
provide cutting edge technologies help in upgrading the skill/quality levels in addition to
opening export markets.

The company is also having its operation all over the world its liaison offices are
situated in countries like





It also has customers like BAE (UK), IAI (ISREAL), BOEING (USA), AIRBUS (FRANCE)
and other different countries.

The Hindustan aeronautics Limited (HAL) evolved into a vertically integrated aeronautics
complex and the large of its kind in Asia.

Today HAL has 19 production unit and 9 research and design centers spread
over at:

• Bangalore

• Nasik

• Koraput

• Kanpur

• Lucknow

• Korwa

• Hyderabad

• Barrack pure

Further, several co-production and joint ventures with international participation are
under consideration, aiming to enhance business and upgrade technology.


The Government of India (GOI) became one of the shareholders of Hindustan Aircraft
Limited in March 1941 and took over the management in 1942. HAL in its present form as a
Public Sector Undertaking (PSB) under the Ministry of Defense and fully owned by HAL
Aircraft division GOI, came into existence on October 1, 1964, when Aeronautics India
Limited and Aircraft manufacturing Depot were merged with Hindustan Aircraft Limited.

HAL is the largest PSU under the Department of defense Production, GOI and has been
declared as a Mini Ratna (category – 1) company.

HAL has blossomed into a major player in the Global Aviation Arena and is today one
among the elite “NAVARATHNA COMPANIES”.

HAL was initially set up as HINDUSTHAN AERONAUTICS LIMITED @ 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. HAL in its present forms as the Public Sector Undertaking (PSU)
under the Ministry of Defense and Gully owned by Government of India came into
existence on October-1st – 1964, when Aeronautics India Limited and Aircraft
Manufacturing depot were merged with HAL.

Thus, HAL is purely a public enterprise but in recent years the government has been
encouraging greater interaction of private players with Defense Research Organizations by
allowing them access to research done by their Laboratories.
Nearly US $ 275 Million worth of material, sub-assemblies and components are obtained by
State-owned Defense Undertakings by the Private Sector.

The Aerospace Market is highly competitive with the State owned, HAL being the largest
Indian Aircraft manufacture. Competition is likely to intensify with greater Private Sector and
Foreign participation. The Government too has set up its role in promoting the industry.

The company does not have any competitors in Domestic Market, for its Aircraft because it
requires huge sum of money & vast area of land for establishing a company and it also
involves huge risk which the private parties would not like to take. And the engine division
manufactures Aircraft purely for countries defense purpose. So its main customer is IAF
(Indian Air force).

The company is having few competitors of its export projects like; Boeing &Airbus does
from countries like China and Pakistan.



Security department provides the safety measures to employees. New rules

and regulations are created to protect to protect the employees from
meeting with an accident.
Terms and conditions are to be followed by the employees while performing
the job. Safety of employees is taken care of by this department.


HAL has 5 air conditioned training halls with seating capacity varying from
15-50, with flexible seating arrangements. Each classroom is equipped with
an overhead projector, writing board, public address system, digital light
processing projector (DLP) computer, with the necessary state- of the art
software to make presentations.


A good library with over 12,000 books mainly on Management topics, a

number of professional journals and an impressive collection of Audio-Visual
Aids supplement classroom learning and assignments.


An air-conditioned auditorium designed with 180 seats is also available for

viewing films/videos and conducting seminars. A well facilitated Dias is also
available for cultural programs of participants.


Fully furnished 40 twin occupancy rooms and 5 dormitories provide

accommodation for a 100 participants. A neat and tidy cafeteria within the
campus. A very pleasant and calm place to live and nearness to mother
nature- parks, an absolute healthy atmosphere to live in.

Recreation centre is equipped with a home-gym, facilities for indoor and

outdoor sports and also a television set, which provides the participants
much needed relaxation and entertainment during the office hours and
holidays. Many magazines and newspapers are also available.


Canteen has been established at every division as a necessity and welfare

measure and in keeping the statutory requirements under the Factories Act
for the convenience of employees. This canteen serves coffee, tea, snacks,
meals etc.


Employees residing outside the company township are provided with

transport facilities (company owned) at subsidized rates, to the extent
possible for commuting between the residence and place of work.


Company has established schools at Bangalore, Hyderabad, Koraput, Nasik,

Lucknow, Kanpur and Korwa districts for the benefit of the employee’s
children. The administrations of these schools are vested with the
educational committees constituted for the purpose of the education in
respective divisions.


This department is one of the safety measures. This department is to help the
employees. Medicines are provided and available 24hours.


MoU Excellence Award

The Prime Minister, Dr. Manmohan Singh presenting the MoU Excellence Award 2006-
07 for “Industrial Sector” to the Officiating CMD of Hindustan Aeronautics Ltd., Shri
Sanjeev Sahi on behalf of the Hindustan Aeronautics Ltd., at the presentation ceremony
of the MoU Excellence Awards and SCOPE Awards for the year 2006-07 and 2007-08
for Excellence and Outstanding Contribution to Public Sector Management, in New Delhi
on October15, 2009.

Bangalore-based HAL has been awarded the newly-constituted ‘The Alliance Award’ in
recognition of its “unique capabilities and services that are instrumental to a new Boeing

• 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-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

• At the National level, HAL won the "GOLD TROPHY" for excellence in Public
Sector Management, instituted by the Standing Conference of Public Enterprises


INTERNATIONAL PLATINUM STAR AWARD’ from business initiative directions
(bid) Spain, during the 21st World quality commitment (WQC) convention held at
Paris recently.

• The year 2005 started with an excellent beginning and the centre has been
by the institute of IOD New Delhi.
• HAL is conferred with the “NAVRATHNA“ status on 22nd June 2007.
• HAL has received Raksha Mantri’s Awards for excellence for the year 2006-07
under the following categories:

o Best division/Factory Award – Transport – Aircraft division, Kanpur.

o Group/individual Award – Design effort - transport Aircraft division, Kanpur
for the development of Intelligence Welfare Aircraft.
• Gargi Huttenes-Albertus Green Foundry Award of the year 2008-2009 by the
Institute of Indian Foundry men to Foundry & Forge Division. The award was
presented on 5th February, 2010 at Ahmedabad.
• Supplier of the year 2009 by Boeing based on their evaluation criteria for suppliers.
• International Diamond Star Award for Quality in the realm of customer satisfaction,
leadership, innovation and technology as established in QC 100 TQM Model to the
Foundry & Forge Division during 23rd World Commitment Convention of Business
Initiative Direction held at Paris in September 2009.


The following are the significant achievements of the Company:-

• The Company produced Su-30MKI, Hawk, DO-228 aircraft ALH and Cheetal
helicopters along with their engines and accessories for the Indian Defence

• The ALH in the new configuration (Mk.III) with high powered Shakti engine was
produced for the Indian Air Force (IAF) and new systems like EO Pod, EW Suite /
Integrated Self Protection System, Active Vibration Control System, etc were
produced for the military utility operations. The ALH in the civil version was also
produced for the Border Security Force (BSF).

• The Company carried out overhaul on 203 aircraft / helicopters and 497 engines
encompassing 13 types of aircraft and 15 types of engines.

• Production of the Intermediate Jet Trainer (IJT) crossed a major milestone with
the first Limited Series Production aircraft undergoing flight tests on 4th January

• Technology absorption was successfully completed for the production of Hawk,

an Advanced Jet Trainer from the raw material stage.

IAF flies homegrown Tejas fighter jet

BANGALORE: India on 10TH JANUARY 2011, Monday joined the select club of countries
making a fighter jet from scratch when Indian Air Force flew for the first time the lightweight
indigenous multi-role Light Combat Aircraft...


The HAL Tejas (Sanskrit: Tejas mean "Radiant" is a lightweight multirole jet fighter being
developed by India. It is a tailless, compound delta wing design powered by a single
engine. It came from the Light Combat Aircraft (LCA) programme, which was begun in the
1980s to replace India's ageing MiG-21 fighters. Later the LCA was officially named "Tejas"
by then Prime Minister Atal Bihari Vajpayee.
The IAF is reported to have a requirement for 200 single-seat and 20 two-seat conversion
trainers, while the Indian Navy may order up to 40 single-seaters to replace its Sea Harrier
FRS.51 and Harrier T.60. During its sea level flight trials off Goa, Tejas notched a speed of
over 1,350 km per hour, thus becoming the second supersonic fighter manufactured
indigenously by Hindustan Aeronautics Limited after the HAL Marut. The first squadron of
Tejas aircraft was cleared to entered service 10th January 2011.


Work Flow model means the process occurring in the organization to convert raw
material into finished goods to meet the organizational goals and needs.
In HAL Aircraft Division the work flow model is as follows:

Request by the customer along with the material

Stores department

Quality inspection approval

Design of production plan by methods engg

department as per chart received from the customer

Issue of Route cards for production by M.E.D

specifying the details, issue number Process and
material batch number etc. to welding shop

CNC Inspection- customer clearance

Process shop for further production


Final inspection

Packing and Dispatch to customers

The Defence industry in India is experiencing significant and progressive change with huge
opportunities for growth. The Order Book position of your Company is around Rs. 80,000
crore as on date.

The Company has challenging times ahead with delivery commitments with respect to
major manufacturing projects like the Su-30 MKI, Hawk, IJT, LCA, ALH and Do-228.Your
Company has geared up to enhance the capacity required to meet the commitments. The
number of aircraft to be produced in the coming years will be higher, almost double,
compared with the last couple of years. This requires concerted efforts to streamline the
sources and achieve the desired level of productivity.


1) Physical task:

 Hawk Mk 132.
 Pta-lakshya.

2) RMS orders:

 Jaguar spares for IAF.

 Kiran spares to IAF & Navy.
 Dornier spares to IAF & Navy.

3) Export orders:

 Airbus.
 Boeing.
 Cargo doors.
 Gun bay doors.
 Wire bundle.
 Weapon bay door.

• Presently engaged in manufacture of Adour MK 871, Adour MK 811, and

Garrett TPE

• 331-5, Artouste IIIB & PTAE engines.

• Also undertakes repair and overhaul of TM 333-2B2, Adour MK 811,

Adour MK 804E,

• Garrett, Dart, Gnome, Orpheous, Artouste IIIB.

•Taken up new TPE 331-12 engine programme for export.

The McKinsey 7S Framework:

While some models of organizational effectiveness go in and out of fashion, one

that has persisted is the McKinsey 7S framework.

Developed in the early 1980s by Tom Peters and Robert Waterman, two
consultants working at the McKinsey & Company consulting firm, the basic premise of the
model is that there are seven internal aspects of an organization that need to be aligned if it
is to be successful.

They published their 7-s Model in their articulate “structure Is Not Organization”
(1980 and in their books. “The art of Japanese Management” (1981) and “In Search of
Excellence” (1982).
The most notable exception, which might be the cause of its enormous
popularity, has been the book “In search of excellence” by Tom Peters and Robert
Waterman (1982), where they emphasize the lesson to be derived from America’s best run

Paradoxically, it is interesting to observe that the best compliment that can be

made to an American firm is that it resembles a Japanese company. MC.Kinsey’s 7S model
reflects upon the frame work used to evaluate the best managerial companies.

The 7S model can be used in a wide variety of situations where an alignment

perspective is useful for:

• Improve the performance of a company.

• Examine the likely effects of future changes within a company.
• Align departments and processes during a merger or acquisition.
• Determine how best to implement a proposed strategy.
The Seven Elements:

The McKinsey 7S model involves seven interdependent factors which are categorized as
either "hard" or "soft" elements:

Hard Elements Soft Elements

Strategy Shared Values
Structure Skills
Systems Style

"Hard" elements are easier to define or identify and management can directly influence
them: These are strategy statements; organization charts and reporting lines; and formal
processes and IT systems.

"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible
and more influenced by culture. However, these soft elements are as important as the hard
elements if the organization is going to be successful. Those seven elements are
distinguished in so called hard S’s and soft S’s. The hard elements are feasible and easy to
identify. They can be found in strategy statements, corporate plans, organizational charts
and other documentation.


The concept of Strategy includes Mission, Purpose, Goals, Objectives and

major action plans and Policies.

To become Globally Competitive Aerospace Co while working as an Instrument

for achieving Self-reliance in Design, manufacturing & maintenance of
Aerospace Defenses equipment & diversifying to related areas managing the
business on commercial lives in a climate of growing Professional competence.

1. To tap International Market for Civil Military Aerospace Application.

2. To become one stop hub (single centre) for all Defenses Aircraft and
Helicopter requirements.
3. Private or Public Partnership in Civil and Defenses Production of
4. Maintain enough resources at optimum level to meet objectives and
goals of the company.
5. Cultivate leadership with shared vision at various levels in the
6. Be competent in Design, Analysis & up gradation of knowledge & skills,
training, retaining.


A. Promotion and Career planning.

B. Training Programmes.

C. Improving Quality of Life.

D. Formation of HRD Cells.


The Design of organization structure is a deciding task to the Management of

an organization. It is the Skeleton of the whole organization depicting the
formal relationship among various position and activities.

Structure of HAL’s Aircraft division-


Senior manager-Finance


Deputy Manager

Accounts officer

Assistant accounts officer


HAL Aircraft has a vertical structure. The hierarchy relationship with a number
of levels from top to bottom. Authority flows downward. It is pyramid shaped,
which implies Centralized Authority at the top, departmental job hierarchy in the
middle and intense division of labor at the bottom.
This type of structure provides a clear and well-defined work setting to its
The following are various departments of HAL which is helpful to run the
company systematically and smoothly perform the organizational goals and
o Production.
o Finance.
o Human Resource & Administration.
o Marketing.
o Purchase Department.
o Research & Development.
o Material Management.
o Product Design.
o Industrial Engineering & Management services.
o Stores department.


System refers to the rules, regulation and production concept both formal ad
informal that complement the organization structure.
The organization follows the informal and legal procedure in taking the orders
from the customers. For the regular interaction with sub-ordinates and line
persons, the company people go for both formal and informal interaction.


There are 7 principles that comprise the shared values process.

The Management should share these values with employees. This sharing lead
to greater productivity, Quality, job satisfaction and products.

The organization is committed to these values to guide company and

employees in all their activities:


The company is dedicated to build a relationship with the customers where it

becomes a partner in fulfilling their mission. The company strives to understand
the customer’s needs and to deliver products and services that fulfill and
exceed all their requirements.


The company is committed to continuous improvement of all the activities.

The company will supply products and services that conform to highest
standards of design, manufacture, reliability, maintainability and fitness for use
as desired by the customers.


The company believes that its success depends on its ability to continually
reduce the cost and shorten the delivery period of the products and services.
The company will achieve this by elimination waste in all activities and
continuously improving all processes in every area of the


The company believes in striving for improvement in every activity involved

in the business by pursuing and encouraging risk taking, experimentation and
learning at all levels within the company, with a view to achieving excellence
and competitiveness.


The company believes in achieving harmony in work life through mutual

trust, transparency, co-operation and sense of belonging. The company will
strive for building empowered teams to work towards achieving organizational

The company values its employees. The company will treat each other with
dignity and respect and strive for individual growth and realization of every
ones real potential.


Staffing is the process of acquiring human resource for the organization and
assuming that they have the potential to contribute to the achievement of the
organization goals.
The following is the various categories & designations of staff in HAL:


A Helper, messenger, waiter

B Mechanic, technician, security guard, clerks
& typist
C senior technician, electrical welder,

D Highly skilled technician

E Master skilled technician, senior
administration, assistant Accountant

S1 Departmental supervisor

S2 Joint supervisor
S3 Supervisor
S4 senior supervisor


GRADE 1 Assistant engineer,
assistant officer
GRADE 2 Engineers
GRADE 3 Assistant managers
GRADE 4 Managers
GRADE 5 Senior Managers
GRADE 6 Assistant General
GRADE 7 Deputy General
GRADE 8 General Managers
GRADE 9 Chief General
GRADE 10 Executive directors

GRADE 1-5 is considered to be lower management.

GRADE 6-10 is considered to be middle management.

Skills refer to crucial strengths or capabilities of an organization. Among

one of the objectives of the organization is “continuous improvement in
knowledge, skill and competence”.

According to company’s mission, vision, objectives, strategies and policies,

following are identified necessary to improve the Employee’s skills.

Skill mainly in HAL is quality, technology and innovative employees being

drivers by technology possess and should require technical skills like:

 Executives: ENGINEERING.
 Non Executives: ITI and Diploma.


Focus on the requirement would be necessary to recruit people with the

combination of knowledge, skill, experience and attitude in line with
organizational requirement through appropriate man power plan both
short term and long term Recruitment Programmers.


Identification of Training competency requirement in terms of mission,

vision of the company would be the strategic point of the Training &
development strategy of the company.

The following objectives have been set in this regard:

1. To provide Training to all Employees at regular interval in a plan

period of 5 years.
2. Training to become an integral component of individual
professional evolution by:

• Updating knowledge to avoid obsolescence

• Enhancing Professional creativity
• Enabling employees to take up higher responsibility.
• To create a business and strategic thinking to take new
business challenges.


Identification of time scale performance and resultant corrective action

out the company would be given priority. Similarly, faster career growth
opportunity would be provided to high performance.


Focus of the system in the company would be to promote teamwork

and culture, achievement and excellence in the organization. Coupled
with above like “INTER DIVISIONAL COMPETITION” etc has been
institutionalized in the company for the team reward.

HAL has also introduced the scheme for learning and certification for the
Executives as a starting point for building individual knowledge.
The scheme inter-alia provides opportunity for the Junior and Middle
Management executives to broaden perspective by not only learning
about all functions and also the procedures in their respective discipline
but also in related areas and overall knowledge about the organization
and its environment.


Style is nothing but an organization culture, development of which is

continuous and improving each year.
The employee shares a common way of thinking and behaving in an
organization. They give due respect to women.
Employees are very professional in their dealings.
The Managers go for achievement of organizational goal, motivation to sub-
ordinate and quality of the work.
The culture followed in HAL is open culture where
 The superior acts on the criticisms.
 Superior listens to complaints.
 Superior follows up an employee opinion.

The style of functioning of HAL is PARTICIPATIVE.





Top management consists of Chairman, Board of Directors, Managing Directors, General

Manager, & Assistant General Manager, Deputy General Manager.

2. Middle level consists of Deputy Manager, Manager, Senior departmental and sectional

3. Lower level consists of Junior Officers, Supervisors and Employees.

The management activities flow from top to bottom and it is authoritative organization
where everyone is not given individual freedom to put rules and regulations. It has to act
according to the ministry of defence.

A scan of the internal and external environment is an important part of the strategic

process. Environment factors internal to the firm usually can be classified as strength (S) or

weaknesses (W), and that external to the firm can be classified as opportunities (O) or

(T). Such an analysis of the strategic environment is referred to as SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm’s resources

capabilities to the competitive environment in which it operates. As such, it is instrumental


strategy formulation and selection. The following diagram shows how a SWOT analysis fits
in to

an environment scan:

SWOT Analysis Framework:

Environmental Scan

Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats


 Enjoys monopoly
 Enjoys budgetary support and orders
 Only supplier for maintenance of Aircrafts.
 Biggest overhaul centre in the East.
 More than 50 yrs old, it has achieved expertise in technology.
 Biggest R&D Unit and also foundry and forge unit.
 High skilled laborers.


 All major decisions are taken by the Government.

 Since it is Public sector Retrenchment is not easy.
 Higher inventory cost.
 Delays in decisions due to procedures and Authority.
 Focus on large Institutional customers only.
 Highly dependent on Government sector.
 Lacks Efficiency (Productivity), major working people are above
age 45.


 Export Orders towards A320 Airbus Doors, Boeing Doors and

Spares parts-Jaguar.
 Increasing demands for small and medium range equipments.
 Expected to get more orders in future, due to competitive prices.
 HAL can compete in the global market.
 Develop good vendors for detail parts and assemblies
 Increasing outsourcing efforts for details and sub assemblies.
 Started additional work on PSLV/GSLV structures.
 Facility for thermal painting is being established at the division.
 Development and fabrication of structures for GSLV MK III prog.

 Overhaul of Aircraft and light maintenance open to Private.
 Permitting Private sector for manufacturing and supplying Defense
 Liberalization Policy of Government of India.
 New Economic Policy and signing of WTO Agreement by the
 Change in Technology of information with more features.
 Is facing competition with the international market because of
 Licenses agreement has restricted the company to enter into
business with other countries.
 Depends on other countries for raw materials.
 Changing foreign policy also affects the industry.
 Sole customers may go for outsourcing.
 Delays in placing order.

Head Office Control Account 1 -128984.47 -118759.95
Reserves And Surplus 2 11245.75 9347.01
-117738.72 -109412.94

Secured Loans 1453.51 190.76
Unsecured Loans 0.00 0.00
Deferred Liabilities (Net) 4
Deferred Tax Liabilities 4A 0.00 0.00
-116285.21 -109222.18

Gross Block 5 9551.84 9290.02
Less : Depreciation 6 7860.27 7617.92
Net Block 1691.57 1672.10
Capital WIP 7 1755.58 671.26
3447.15 2343.36
Special Tools & Equip.. 8 24793.75 10694.96

Investments 9 0.00 0.00

Deferred Tax assets 9A 0.00 0.00


Inventories 10 129747.15 81116.17


BALANCE SHEET SCH 31 st MARCH 2008 31 st

Sundry debtors 11 8743.47 9121.19
Cash and Bank Balances 12 15.24 28.34
Loans and Advances 13 25754.54 140019.30
164260.40 230285.00
Less: Current Liabilities 14 322376.47 370699.77
provisions 14 10297.89 6417.37
332674.36 377117.14

Net Current Assets -168413.96 -146832.14

Gross Carrying Amount 15 25124.64 25039.29
Less: Cumulative 1236.79 467.65
Amortization and Impairment Loss
Net Carrying Amount 23887.85 24571.64

-116285.21 -109222.18