Anticipating MMRCA offsets, HAL planning large aero structures unit

As India’s Medium Multi-Role Combat Aircraft (MMRCA) competition is entering the decision phase, Hindustan Aeronautics Limited (HAL) is planning to set up a large aero structures unit to take advantage of the possible offsets business arising out of the $10 billion deal. Irrespective of whichever company wins the MMRCA bid, they will have to partner with HAL to licence-manufacture the aircraft in India and are certain to select HAL as the offsets partner as well. HAL director, Corporate Planning and Marketing, P. Soundara Rajan told defenseworld.net that memoranda of understanding had been signed with all the MMRCA bidders: Boeing, Lockheed Martin, Dassault, Saab, Eurofighter and MiG as possible offsets partner to meet a part of the 50% offsets arising out of the contract. He said the aero structures unit would meet the export opprtunies of the offsets work. HAL also expects to supply different systems designed and manufactured in HAL’s various divisions such as Hyderabad, Lucknow & Korwa against offset. HAL has extensive experience in aero structures while dealing with international aerospace companies such as Airbus, Boeing, Ruag, IAI and Embraer. These companies have been sourcing aero structures from HAL for some years now. Most of the contracts with these companies were entered into when there was no offsets obligations, he added. Recognizing HAL’s capability in timely and cost effective aerospace quality supplies, Boeing had recently conferred upon HAL, the “Supplier of the year” award, he added.