Hindustan Aeronautics Limited : New frontiers, new initiatives

By Arup Chatterjee | Director (Engineering, R&D) | Hindustan Aeronautics Limited

Hindustan Aircraft Pvt. Limited was incorporated in December 1940 by the Late Walchand Hirachand in association with the Government of Mysore. It was set up initially in the backdrop of World War-II with the objective of manufacturing certain American aircraft under license and Overhauling of aircraft of the Allied forces. After takeover by the Government of India and certain reorganizations later, Hindustan Aeronautics Limited (HAL) in its present form was incorporated in October 1964. Over 78 years of its existence, HAL has expanded its business from Maintenance, Repair and Overhaul (MRO) to indigenous Design & Development (D&D) of fixed wing and rotary wing aircraft, Licensed manufacture of Fighter and Transport Aircraft, Helicopters, Engines, Systems, Mid-life upgrades and integration of modern weapons and systems on existing platforms.HAL has also diversified into non-defence areas such as production of light alloy structures for satellite and launch vehicles for the country’s space programmes, airport related services namely aircraft and cargo handling, and manufacture, repair & overhaul of industrial gas turbine engines.

Presently, HAL has 20 Production and 11 R&D Centers located across India. HAL has the distinction of being a vertically integrated organization with in-house capabilities and infrastructure to offer end-to-end solutions in Designing, Testing and Manufacturing of aircraft and their systems and the Ground support systems.HAL is a Navratna Defence Public Sector Undertaking and has around 80% footprint in Indian Defence flying platforms. HAL was listed on both BSE and NSE on 28^th March 2018 with divestment of 10% of Equity stake by the Government of India. HAL occupies 35^th Position among top 100 Defence Aerospace industries globally.

For realizing its objective and vision to become a significant global player in the Aerospace industry and to achieve self-reliance in Defence, HAL has a strong Research and Development (R&D) organization. R&D projects and activities at HAL are focused on indigenous design and development of new/ improved products, processes and services, Obsolescence Management, Import substitution, etc. aimed at offering cost-effective solutions to the Armed Forces.

In addition to its manufacturing and Repair/Overhaul projects, HAL is currently engaged in the D&D of different variants of the Light Combat Aircraft (Tejas), Advanced Light Helicopter (Dhruv), Light Combat Helicopter (LCH), Light Utility Helicopter (LUH), Hindustan Turbo Trainer (HTT-40), 25 kN Turbofan engine  and 1200 kW Turbo-shaft engine, etc. In addition, in the process of D&D, critical technologies such as the Arrestor Hook System (AHS) of Naval Aircraft, Main Rotor folding and Tail Boom folding for Helicopters, Real Time Operating System software,3-D Audo Warning, Voice Activated Command System, 3D printing of Aerospace components, Rotor Craft Math Model, etc. have also been developed.

In the recent past, in order to achieve all round excellence, HAL has taken many initiatives as follows:

• In addition to its existing collaborations with various DRDO Labs, CSIR Labs, and Academic institutes, R&D Chairs have been established in various IITs and IISc, Bangalore to address key challenges in technology development.
• To foster Innovation and technology development in defence, HAL under the aegis of the MoD, has formed Joint Venture Company, “Defence Innovation Organisation” along with BEL.
• An Intellectual Property Rights Facilitation Cell has been formed centrally to streamline, guide and monitor the IPR acquisition process. Currently HAL holds 176 IPR in total and more than 1000 Applications for IPR are under different stages of approvals.
• To reduce dependence on imports and to further the “Make in India” initiative of the Government of India, renewed emphasis has been placed on indigenous development of airborne equipment, Castings, Forgings, Raw material, etc.
• Application of learnings from past projects and adoption of concurrent engineering approach in various D&D projects is resulting in reduction of cycle time from concept to market.
• To increase the rate of production, and to meet customer expectations for faster deliveries, HAL is investing in additional production lines for aircraft and helicopters.
• To boost Public-Private partnership, HAL provides necessary impetus to the growth of aviation industry in India by enhancing outsourcing to private industries and supporting industries by providing technical assistance, offering test facilities, assistance in getting certification etc. HAL has got around 2000 registered sub-contractors.
• HAL has hosted more than 400 imported mechanical, electrical, avionics and instrumentation systems and sub systems on the HAL portal for private industries to take up indigenization.  HAL has also hosted more than 100 Tools, Testers and Ground Equipment (TTGE) for Su-30 MKI aircraft for manufacture/ ROH / maintenance.

• Customer Support initiatives:
  • Setting up of distributed mini MRO Hubs at customer Bases to enhance level of service.
  • For the first time in India, Performance Based Logistics (PBL) contract with Indian Coast guard for ALH has been signed. This will help the customer to focus on operations while HAL will manage the Maintenance aspects. This model transfers the risk of aircraft downtime almost entirely to HAL, a demonstration of HAL’s commitment to support its customers despite odds.
  • Customer Service Workshops are being regularly conducted to enhance customers’ awareness, and to impart training, on HAL’s products and services.
  • Online monitoring of Divisional Customer Support performance through IT enabled portals has been initiated to enhance service levels.

• Quality initiatives: Various initiatives such as process improvements, facility improvements, training workshops, etc. have been undertaken to improve quality.
  • Co-ordination meetings between Corporate Quality and customer’s quality team on a regular basis for better monitoring of Defect Investigations.
  • A policy document on utilization of third party inspection services and a guideline on evaluation & selection of these inspection bodies has been developed by Corporate Quality and released by Ministry of Defence for use and implementation by all concerned.
  • A model for self-certification beyond the existing regulatory control procedures is under implementation in two HAL Divisions on a pilot basis to accord more autonomy and accountability to the manufacturing organization for quality of products and services.

• Export initiatives
  • Training & Maintenance support: Technical teams were deputed to customer sites for providing training & on-site maintenance support for HAL supplied aircraft platforms operating overseas
  • Business Development – Civil: HAL has produced two 19 seater Dornier-228 aircraft and has secured Civil Certification for the first aircraft from Directorate General of Civil Aviation (DGCA).   HAL is in discussion with potential customers for sale / operation of Do-228 aircraft under the UDAN programme of the Government of India and for potential exports.

• Information Technology initiatives
  • A ‘Commitment Monitoring Portal’ for Customer Service is developed which tracks all the commitments given to customers with status updated by the Divisions.
  • Key Performance Indicator Dashboard is developed for monitoring the trends of Key Performance Indicators (KPIs) across various Divisions in the areas like IMM, Customer Service, HR, Manufacturing and Quality.
  • For quick reporting and accessing of information, ERP system has been implemented throughout the company.
  • Compliance has been made for HAL website and HAL e-Procurement system with Internet Protocol Version 6, which is the most recent version of IP. ISO 27001 IT security training has been imparted to IT Executives.
  • To support Digital India initiative, all the payments are made through RTGS.

• Human Resource initiatives: To improve productivity and engagement of the employees, the following initiatives are under implementation:
  • Sponsorship of Executives for Post Graduate studies at Cranfield University (UK), Superaero, France, IITs and IIM.
  • HAL Management Academy has launched an AICTE approved Post Graduation Diploma in Aviation Management programme for Military and Civil personnel.
  • To groom future leaders, HAL is conducting Leadership Development Programs.
  • Skill Mapping has been completed for 99% of the total direct Workers. Based on the Skill Gap Analysis, the training needs have been identified and the Training Curricula and Training Contents have been developed by the domain specialists from HAL and uploaded on Kaushal Vikas Portal.
  • Company has initiated efforts towards implementation of Performance Assessment in-line with the People Capability Maturity Model (PCMM)”.

• Corporate Social Responsibility (CSR): HAL as a responsible organization has embraced the Community-based development approach, working actively with local communities leading to Sustainable Development. CSR objective of HAL is to improve the quality of life of the socially and economically backward groups and marginalized and weaker sections of the Society. HAL has been taking up CSR projects/activities in the vicinity of its Divisions, in various socially relevant areas like infrastructure development, education, drinking water, pond/river rejuvenation, healthcare, renewable energy, etc.

• Skill India initiatives:
  • HAL has been contributing significantly towards the Skill India campaign launched by the Government. Around 45% of the CSR fund has been spent for skill development activities including the following.
  • Adoption of ITIs
  • Training of Apprentices
  • Donating Machines/ Equipment

Challenges

The days when HAL was a monopoly in its chosen field of business are finally over. Gradual opening up of the Defence Sector to Private and Foreign investment through various new policy interventions by the Central government has led to a situation where HAL is being challenged in its own turf by emerging Private Sector Companies. In addition, specific policies such as the Strategic Partnership model try to carve out separate niche spaces for major Private companies where HAL and other DPSUs and the OFB dominated in the past. While this transformation towards an overwhelmingly privatized business space would be incremental and gradual, HAL just cannot afford to be complacent about its role and influence in the Defence Aerospace sector any more. This realization that it will have to fend for itself in the future is driving an internal transformation within HAL. The strategic reorientation that is an imperative is focused on shortening delivery lead times, cost reduction, resource optimization, multi-skilling and capability enhancements. In the longer term, diversification into non-Defence sectors and a quantum leap in Exports would be essential for HAL to survive and prosper even when its domestic dominance weakens.  HAL has weathered many a storm during its long and chequered history. Although the challenges are new, environment less benign and the headwinds stronger this time, there is no doubt that the company that emerges from the internal transformation will be stronger, leaner and more battle-ready than it ever has been.

(Shilpa Bichitra | Anniversary Edition | 2019)