NEW DELHI: The last unlisted navratna, $2-billion Hindustan Aeronautics (HAL), may enter the capital market. The apex committee on navratna PSU, chaired by the Cabinet secretary, has proposed HAL’s listing.
The apex committee has advised “the department of defence production to explore the possibility of listing HAL”, an official said, adding that the move is on prime minister Manmohan Singh’s suggestion. “It may be useful for more public enterprises to be listed on the stock exchange, as this would enhance professionalisation of the board of directors and empower independent directors,” Dr Singh had said at the conference of PSE CEOs in March.
It is unlikely the department of defence production would object to the listing of the navratna. Bharat Electronics (BEL), another company under the department, is listed and has been accorded navratna status, an official said. HAL is involved in manufacturing of aircraft and helicopters. HAL has collaboration with major aviation companies such as Boeing and Eurocopter, and is in the process of developing more advanced aircraft. In a recent move, Boeing agreed in principle to outsource $1 billion in aerospace manufacturing work to HAL over 10 years.
Besides manufacturing aircraft with in-house R&D, HAL also produces aircraft under license. The Bangalore-based company has 16 production units and nine R&D centres. It has participated in the country’s space programmes by manufacturing structures for satellite vehicles such as PSLV and GSLV. HAL recorded a PAT of Rs 1,149 crore in 2006-07, a growth of 49.03% over the previous year. During the period, the company registered sales of Rs 7,783 crore.
With the country’s defence requirements in terms of aircraft and associated technologies multiplying, foreign military aircraft suppliers such as Boeing, Eurocopter and Lockheed Martin are showing interest in the domestic market. As per an estimate, India has a potential $40-billion arms market, including for military aircraft and missile defence system.
The apex committee has advised “the department of defence production to explore the possibility of listing HAL”, an official said, adding that the move is on prime minister Manmohan Singh’s suggestion. “It may be useful for more public enterprises to be listed on the stock exchange, as this would enhance professionalisation of the board of directors and empower independent directors,” Dr Singh had said at the conference of PSE CEOs in March.
It is unlikely the department of defence production would object to the listing of the navratna. Bharat Electronics (BEL), another company under the department, is listed and has been accorded navratna status, an official said. HAL is involved in manufacturing of aircraft and helicopters. HAL has collaboration with major aviation companies such as Boeing and Eurocopter, and is in the process of developing more advanced aircraft. In a recent move, Boeing agreed in principle to outsource $1 billion in aerospace manufacturing work to HAL over 10 years.
Besides manufacturing aircraft with in-house R&D, HAL also produces aircraft under license. The Bangalore-based company has 16 production units and nine R&D centres. It has participated in the country’s space programmes by manufacturing structures for satellite vehicles such as PSLV and GSLV. HAL recorded a PAT of Rs 1,149 crore in 2006-07, a growth of 49.03% over the previous year. During the period, the company registered sales of Rs 7,783 crore.
With the country’s defence requirements in terms of aircraft and associated technologies multiplying, foreign military aircraft suppliers such as Boeing, Eurocopter and Lockheed Martin are showing interest in the domestic market. As per an estimate, India has a potential $40-billion arms market, including for military aircraft and missile defence system.
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