Ful Profect

7/29/2019 Ful Profect

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CHAPTER 1

INTRODUCTION

Recruitment is the major function of the human resource department and

recruitment process is the first step towards creating the competitive strength and the

strategic advantage for the organizations. Recruitment process involves a systematic

procedure from sourcing the candidates to arranging and conducting the interviews and

requires many resources and time. According to Edwin B. Flippo, Recruitment is the

process of searching the candidates for employment and stimulating them to apply for

jobs in the organization.

Recruitment is the activity that links the employers and the job seekers. The

recruitment function of the organizations is affected and governed by a mix of various

internal and external forces. The internal forces or factors are the factors that can be

controlled by the organization. And the external factors are those factors which cannot be

controlled by the organization.

In todays rapidly changing business environment, a well-defined recruitment

policy is necessary for organizations to respond to its human resource requirements in

time. Therefore, it is important to have a clear and concise recruitment policy in place,

which can be executed effectively to recruit the best talent pool for the selection of the

right candidate at the right place quickly. Creating a suitable recruitment policy is the

first step in the efficient hiring process. A clear and concise recruitment policy helps

ensure a sound recruitment process.

1.1Statement of the Problem

Recruitment Process must be in conformity with the Recruitment policy and

personnel policy of the organization. It must also be in conformity with Government /

State / Public Policies. The policy must be dynamic enough to accept changes as required


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with the passage of time. The employees will get motivation and their morale will be

higher by the effective recruitment policy.

A good recruitment process must assist the empowerment of the employees. It

must be in conformity with job analysis. The recruitment process and policy must meet

long-term requirements of employees in terms of quantity and quality. So a well-

designed recruitment process only fetches effective and efficient personnel to the

organization. With this view the research study in HAL, Bangalore Complex is being

carried out.

1.2 Objectives of the Study

1. To study the Employees perception on recruitment process in different cadres of

Executives of the organization.

2. To understand the Satisfaction level of the employees towards the recruitment

process

3. To study about the recruitment process clarity among employees

1.3. Scope of the Study:

The present study was limited to the Hindustan Aeronautics Limited,

Bangalore Complex only. The study is focused on the detailed analysis of recruitment

process in different cadres of executives at HAL, Bangalore Complex. The scope of

the study is to understand the employees perception on recruitment process in the

executive cadre of the organization.

There are about 11 divisions in HAL Bangalore Complex. Due to variousconstraints the study was limited to Bangalore complex. MDBC is the biggest

department in HAL. HR department comes under MDBC. Each function in the HR

department is carried out separately and the researcher has access to the recruitment

department.


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1.4 Research Methodology

1.4.1 Research Design:

Research design provides the glue that holds the research project together. A

design is used to structure the research, to show how all of the major parts of the research

project work together to try to address the central research questions. This study is a

descriptive study. Here the researcher goes through the state of affairs existing in the

company. The design chosen for the study is descriptive research design.

1.4.2 Research Approach:

Research Approach refers to the approach or the methodology that is adopted to

conduct the research. The research approach that was used in the study was survey

research. Since HAL- BC has more than 3000 employees it is not possible to collect data

from each employee. Hence the researcher conducted a sample survey study.

1.4.3 Data Sources:

The data required for the research purpose was collected from:

1. Primary data source

2. Secondary data source

Primary Data

Primary data is information collected by the researcher directly through

instruments such as surveys, interviews, focus groups or observation. Tailored to his

specific needs, primary research provides the researcher with the most accurate and up-

to-date data.

The information was collected through questionnaires, observation, personnel

interviews and informal interviews .Individual information collected from the

managers and the workers was also used as a source of primary data.


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Secondary Data

Secondary data, on the other hand, is basically primary data which has already

been collected by someone else. Researchers reuse information because it is easier and

less expensive to collect. However, it is seldom as useful and accurate as primary data.

The data was collected from various other sources like internet, newspapers,

books and magazines of HAL, Rules and regulations manual of HR Department and old

project reports. The industry as a whole, present future and global scenarios of the

industry were the main secondary data collected.

1.4.4 Sampling Plan:

The present study used sample survey method for collecting the information

required for the study. Thus it was necessary to select the sample for the study using a

systematic sampling plan. The determination of sampling unit, sample size and sampling

procedure are given in the definite form under sampling plan.

1.4.4.1 Sampling Unit:

Sample Unit is that element or set of elements considered for selection in some

stage of sampling. In this study the researcher studies about the perception on recruitment

process of executives at Hindustan Aeronautics Ltd., Bangalore Complex. Thus all

executives working in HAL- BC in the 12 grades formed the sampling unit for the study.

1.4.4.2 Sampling Size:

Sample size is the number of elements in the obtained sample. The size of the

population is 3000 in HAL-BC. Twelve different grades of executives are categorized in

to three cadres. Officers in Grade V and above come under the Senior Executives cadre.

Officers in Grade III and IV come under Executives cadre and Officers in Grade I and II

come under Junior Executives cadre. In order to give equal representation to all

categories, 40 executives of each category were surveyed in this study. So the total

sample size used for the study was 120.


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1.4.4.3 Sampling Procedure:

The researcher usedSimple Random Sampling method in this study for selecting

the 120 samples, which has the probability that any of the possible subsets of the sample

is equally likely to be the chosen sample. The list of executives in 3 categories was

collected from the HR department and 40 names were selected from each category using

lottery method.

1.4.5 Contact method:

The researcher used direct contact method for collecting the necessary

information. The 120 executives selected for the study were met at their work place after

obtaining necessary approvals from the concern office and fixing prior appointment with

them. This is the method by which the researcher collected the data in direct face-to-face

interaction with the respondents.

.

1.4.6 Research Instrument:

The research instrument used for the study was questionnaire. A questionnaire is

a research instrument consisting of a series of questions and other prompts for the

purpose of gathering information from respondents. Although they are often designed for

statistical analysis of the responses, this is not always the case. A structured questionnaire

was developed to collect all the relevant information from the employees. Open ended

questions were only used in the questionnaire. Likert scale was also included in the

questionnaire.

Questionnaire was Pre tested in the MDBC Department before circulating to the

designed sample. For the purpose, the draft questionnaire was circulated to Executives

each from the three categories and was requested to fill it. The filled in questionnaires

were evaluated very closely to find out any problems related to understanding the

question and other typographical or problems of sequencing of questions. The researcher


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also interviewed the respondents and collected their feedback. Necessary change were

incorporated in the questionnaire and used for collecting data.

1.4.7Research PeriodThe time frame for this project was 60 days, i.e. from 19 th March to 18th May.

1.5Limitations of the study:1. Some information being very sensitive as far as organization is concerned is left

untouched and not mentioned in any way.

2. Top-level strategic type of decisions and information too are not taken under

study to keep the confidentiality of the organization.

3. As it was a survey method it relied on a self-report method of data collection.

Intentional deception, poor memory, or misunderstanding of the question might

have contributed to inaccuracies in the data.

4. When rated in the likert scale of 1 to 5, it's hard to say what one person's rating of

5 means as opposed to another person's rating of 5.

5. The lack of time to carry out a survey

6.

The lower priority shown in filling the questionnaire from the part of respondents

as they had to complete their urgent tasks.

7. Survey was conducted at a single point in time and so it is difficult to measure

changes in the population unless two or more surveys are done at different points

in time.

8. Questionnaires were not filled at many times and sometimes not returned that led

to distribution of them again.

1.6Chapter Scheme1. Chapter 1 Introduction includes Statement of the problem, Objectives of the

study, Scope of the study, Research methodology, Research design, Research

approach, data source, Sampling plan, Sampling Unit, Sampling Size,

Sampling Procedure, Contact method, Research instrument, Research period,

Limitation of the study and Chapter scheme.


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2. Chapter 2 Industry profileincludes Introduction to Industry and its evolution,an analysis of the International scenario, National scenario, and State scenario.

3. Chapter 3 Company profile includes History and growth of the company, Futureplans, Financial Performance of the company, Details about HR Department.

4. Chapter 4 is the literature review which includes the theoretical frame work ofthe topic and the previous research done on the topic.

5. Chapter 5 includes data analysis and Interpretation.6. Chapter 6 includes findings suggestions and conclusion


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CHAPTER II

INDUSTRY PROFILE

2.1. Introduction

The aviation industry encapsulates the development, operation and management

of aircrafts. While the common perception about the sector is that its only about pilots

and airhostesses, there are numerous other, equally significant job options that the

industry cannot function without; from in-flight trainers and aircraft maintenance

engineers to baggage handlers and reservations agents.

Research indicates the global aviation industry is poised to grow at a healthy

5.6% CAGR over the next 15 years. While major conventional mature markets such as

the US and Europe will witness a significant fall in market share from 61% to 52%,

emerging markets, such as India, China and the Middle East, offer a great growth

potential.

Aerospace and Defense has been a unified system in India and has beeninstrumental in showing the enemies a red signal. Aerospace and Defense mechanisms of

India has, in the recent past, received rave reviews worldwide. To keep up the name, a lot

of things are at stake. If you want to mull over on the factors that have contributed to the

rising aerospace and defence grades of India, what has been taking shape, how things

occur on and off the field and other related topics, zoom in here. Bestindiansites.com

gives you an extensive insight into the business area of things.

History of AviationAviation is defined as the design, manufacture, use, or operation of aircraft - in

which the term aircraft refers to any vehicle capable of flight. Aircraft can either be

heavier-than-air or lighter-than-air: lighter-than-air craft including balloons and airships,

and heavier-than-air craft including airplanes, autogiros, gliders, helicopters, and

ornithopters.


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For centuries man has dreamed to soar with the birds. Famous inventors such as

Leonardo da Vinci, John String fellow, and Lawrence Hargrave have conjured up ideas

of how to get some of the strangest machines to fly long before the Wright brothers'

famous first flight at Kitty Hawk.

Early Aviation

The first form of an aircraft was the kite, designed in the 5th century BC. Later on

in the 13th century, Roger Bacon, an English monk, performed studies which later gave

him thse idea that air could support a craft just like water supports boats. In the 16th

century, Leonardo da Vinci studied birds' flight, and later produced the airscrew and the

parachute. The airscrew, Leading to the propeller later on, and the parachute were

tremendously important contributions to aviation. He envisioned three different types of

heavier-than-air craft: the helicopter, glider, and ornithopter (a machine with mechanical

wings which flap to mimic a bird). Although Leonardo's designs were impractical, seeing

they required human muscular power which was insufficient to generate flight with the

aircraft he envisioned, he was vital to aviation because he was the first to make scientific

suggestions.

The 19th

Century

Some of the more credible developments in actual flight and stability occurred in

the 19th century. British Sir George Cayley designed a combined helicopter and

horizontally propelled aircraft, and British Francis Herbert Wenham used wind tunnels in

his studies and predicted the application of multiple wings placed above each other.

Another famous inventor was John String fellow, who designed a steam-engine powered

aircraft which was launched from a wire. This model demonstrated lift but failed to

actually climb. Lawrence Hargrave, a British-born Australian inventor, created a rigid-

wing aircraft with flapping blades operated by a compressed-air motor; it flew 312 ft.

(95m) in 1891. A famous glider developer in the 19th century was Jean Marie Le Bris, a

Frenchman who tested a glider with movable wings.

Kites also played an important role in the development of aviation: they could be

used to test aerodynamics and flight stability. Lawrence Hargrave first created the box


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kite in 1893, and Alexander Graham Bell developed a gigantic passenger-carrying

tetrahedral-celled kite from 1895 to 1910. Some of the most important full-scale model

flight attempts were made by Samuel Langley, who created the first heavier-than-air,

gasoline-powered engine which actually flew. The 'aerodrome', which he called it, was

powered by a 53 horsepower 5-cylinder radial engine and later crashed into the Potomac

River on December 1903 -- days before the Wrights' historic flight.

Throughout this century, major developments would give inventors a sound basis in

experimental aerodynamics, although stability and control required for sustained flight

had not been acquired. Most importantly, inventors noticed that successful, powered

flight required light gasoline engines instead of the cumbersome steam engines

previously used.

Kittyhawk and After

From 1903 to today, it's remarkable how far aviation has come. On December 17,

1903, at 10:35 a.m., the Wright brothers (Orville at the controls) made the first heavier-

than-air, machine-powered flight which lasted 12 seconds and spanned 120 feet. Their

first flight was 102 feet short of the wingspan of the C-5 Galaxy today, yet they did what

every man and woman has dreamed for centuries they flew. Yet, not all flights werevictorious, on September 17, their aircraft crashed, injuring Orville and his passenger

(Lieutenant Thomas E. Selfridge). Selfridge later died of a concussion and was the first

person to be killed in a powered airplane. Yet the show went on and Wilbur went to

France in August 1908; on December 31, 1908, he completed a 2 hour 20 minute flight

which demonstrated full control over his Flyer. The Flyer was purchased on August 2

and became the first successful military airplane. It remained in service for around two

years and was retired to the Smithsonian Institution where it rests today.

Well-known in the aviation field by this time, Glenn Hammond Curtiss won the first

American award, the Scientific American Trophy, for an airplane flight when he flew the

'June Bug' 5090 ft. (1552m) in 1 min 42.5 sec on July 4, 1908. Curtiss also went on to

win the first international speed event, at about 47mph (75.6 km/h), on August 28, 1910.

He also became the first American to develop and fly a seaplane -- the first successful

seaplane flight having been done by Henri Fabre of France on March 28, 1910.


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Before World War I, airplane design greatly improved. Pusher biplanes (two-

winged airplanes with the engine and propeller behind the wing) were succeeded by

tractor biplanes (two-winged airplanes with the engine and propeller in front of the

wing). Monoplane designs were rare, and when World War I began, huge biplane

bombers with two to four engines were developed. Airmail was also started, although it

only lasted a week. The first airmail officially approved by the U.S. Post Office

Department began on September 23, 1911, and the pilot (Earle Ovington) would carry

the mail on his legs and tossed the bag overboard when he reached his destination. Also

in 1911, the first transcontinental flight across the U.S. was completed by Calbraith P.

Rodgers. His flight from New York to California took 3 days, 10 hours, and 14 minutes,

and was by a Wright aircraft.

Before World War II

Between 1919 and 1926, some amazing progress in record breaking for aviation

took place. Captain E. F. White made a nonstop flight from Chicago to New York (727

mi - 1170km) in 1919, and Lieutenant Oakley Kelly and Lieutenant John A. Macready

made the first nonstop transcontinental flight from May 2 to May 3, 1923. This flight was

made from Roosevelt Field, Long Island to Rockwell Field, San Diego. The first round-the-world flight was made from April 6 to September 28, 1924. Also in 1919, the first

nonstop transatlantic flight was made by John William Alcock and Arthur Whitten

Brown on June 14 to June 15. It took a little over 16 hours to complete and they won the

"London Daily Mail" prize of $50,000.

Mail delivery also took a major turn during these years. In 1925, Congress passed the

Kelly Air Mail act which authorized the Post Office Department to contract with air-

transport operators. This made it possible to transport U.S. mail by air; after this, 14

domestic airmail companies were created in 1926.

During World War II

During World War II, aircraft became a decisive factor in warfare. The largest

operator of all international airlines in operation at this time was Pan American Airways.

Pan American served 46 countries and colonies linking all continents and nearly all

oceans. Small aircraft production increased significantly. Before World War II only


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about 193,000 people were employed in the aviation industry, and during 1941 the

number increased to 450,000; also, around 3,375,000 passengers were transported by 18

U.S. airlines at this time, around 1 million more than in 1940. Airmail and express cargo

would also increase by around 30 percent. But by the end of World War II, a new frontier

of flight would take shape, jet and rocket propelled aircraft.

After World War II

After World War II and by 1947 all the basic technology needed for aviation had

been developed: jet propulsion, aerodynamics, radar, etc. Civilian aircraft orders

drastically increased from 6,844 in 1941 to 40,000 by the end of 1945.

One of the minor military contractors was the Boeing Company who later became

the largest aircraft manufacturer in the world. With all the new technologies developed

by this time, airliners were larger, faster, and featured pressurized cabins. New

aerodynamic designs, metals, and power plants would result in high-speed turbojet

airplanes. These planes would later be able to fly supersonically and make transoceanic

flights regularly.

One of the more famous record-breaking flights around this time was the

Voyager, developed by Burt Rutan. The aircraft held 1,200 gallons (4500 liters) of fuel in

its 17 fuel tanks. It weighed about 9,750 lb. (4420 kg) at takeoff and only 1,858 lb.

(840kg) upon landing. The flight, maintaining an average speed of 115.8 mph (186.3

km/h), lasted 9 days, 3 minutes, 44 seconds and covered 25,012 miles (40254 km) and

was completed in December 1986.

2.2 International Scenario

Global aerospace industry enjoys high growth as military expenditures continue

to rise and emerging economies take the lead in the civil aviation industry. While

dominant players are based in Western Europe and the US, Asia Pacific, including India

is set to gain from outsourcing of manufacturing as well as MRO activity.


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The global aerospace industry has come a long way since the first flight was

undertaken in 1903; market size of commercial and defence aircraft was estimated at

US$ 97 billion in 2007. Defence sales account for more than 80% of the total market

typically dominated by the Government and public sector, while the growing private

sector civil aviation has led to a broad-based expansion of the industry across the world.

In addition there is sizeable MRO activity Maintenance, Repair and Overhaul

which is a major component of operating aircraft. On an average, the aerospace industry

spends more annually on MRO than on manufacturing or development.

The global aerospace market has five main components, each with distinct market

structures and driversmilitary aircraft and light combat aircraft make up the bulk of the

market, while jets and helicopters account for less than 20% share. In the past decade,military expenditure has been rising with the international war on terrorism, while civil

traffic has seen a spurt due to robust economic growth, rising incomes, globalisation and

falling air fares.

Changing landscape in civil aviation: Though the recession in 2008 in advanced

countries has been a setback for the civil sector, emerging economies have taken charge

of leading global growth by recovering faster China, India and the Middle East are the

most promising drivers of the civil aviation market. According to research by Boeing, the

fastest growing economies in Asia will lead change in the market space, with Asia-

Pacific set to be the largest air transport market in the world with 45% share of air travel.

Commercial airplane market is estimated to be a huge $ 3.2 trillion by 2027, with Asia-

Pacific accounting for 37% of the total market.

Moreover, while presently the industry is dominated by US and EU based

companies, there has been an increasing trend in outsourcing as firms look out for low

cost manufacturing locations. MRO outsourcing is set to rise from 52% in 2006 to 65%

by 2016. Here again, the Asia-Pacific is set to gain with its efficiency, expertise and

labour cost advantages. Demand for military aircraft is also on the rise, with increased

military expenditure across the world.

Space Industry: There has also been considerable rise in the global space industry,

estimated currently at US$ 250 billion, that comprises satellite manufacturing and

launching, to imaging, navigation and telecommunications. For many years, government

expenditure on space and satellite programmes was the sole driver of the space industry.

However, with rise in commercial applications that touch consumer homes directly


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through GPS receivers and satellite television, there has been a surge in the market size

as technology works to change the way the common man accesses information and

makes his decisions.

Total revenue for space products and services was estimated at US$ 91 billion in

2008, up 10.4% from the previous year. The highest revenue earner within the

commercial satellite service sector was the direct-to-home television, which generated

US$ 69.6 billion. Fixed satellite services were the second highest earner at US$ 16.8

billion, showing a strong growth rate of 31% over the previous year. Commercial space

infrastructure, including launch vehicles, satellites, ground stations, in-space platforms

etc. yielded an estimated revenue of US$ 83.1 billion, with 69 orbital launches, of which

28 carried commercial payloads. The United States and Russia continue to dominate thelaunch space, while China has been rising in importance with record domestic launches.

India ranks amongst the top ten players in the space industry with its significant

achievements in satellite launches, moon mission etc.

Prominent Global Companies:

1. Boeing USA

2. EADS Netherlands

3. Lockheed Martin USA

4. Northrop Grumman USA

5. BAE Systems UK

6. General Dynamics

7. Raytheon

8. United Technologies

9. General Electric

10. Finmeccanica

Among the largest users of aerospace technology are the Department of Defense

(USA), National Aeronautics and Space Administration (NASA), European Space

Agency (ESA), Ariane France and others.


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2.3 National Scenario

Indian industry today is on the threshold of entering into a new era where it will

assume greater responsibility in making the nation self-reliant in Defense Production.

The resurgence of Indias manufacturing sector has been remarkable. Not only are the

profits soaring, the sector is also making its presence felt abroad as many Indian firms are

becoming transnational companies.

The Indian manufacturing sector is internationally competitive with international

quality standards, efficiency and manufacturing facilities. India is fast developing into a

manufacturing hub for world corporations wanting to leverage the sectors proven skills

in product design, reconfiguration and customization with creativity, assured quality and

value addition.

India, also keen to strengthen its own aerospace industry and has asked major

weapon exporting countries to transfer technology to India.

Indian Aviation Industry

In 2003 the whole world celebrated the centenary of powered flight. But we

Indians had to wait for a few more years to observe the centenary of flight in India. It

took just seven years, almost to the day, for the first aircraft to get airborne at Allahabad

in UP. There was hectic activity to bring planes to India and show them off in December

1910.First off the block was His Highness the Maharaja of Patiala. He sent his British

Engineer CW Bowles to Europe to look at the new art or science of flying and bring a

couple of planes back with him. Bowles returned to India in December 1910 with a

Farman biplane made in England and a Gnome-Bleriot Monoplane fitted with two seats.

Apparently in Europe, France was the first to get into the business of flying. The Farman

was also a French design but built in England by a Thomas Holt, recognized as the father

of the aviation industry in England, in collaboration with Farman Brothers of France.

Fortune did not favor Patiala and neither of these aircraft became the first to get into the

air.


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The Humber Company asked the team to proceed to Allahabad immediately after

it landed in Bombay by a merchant ship. This group with all its packing cases set off for

Allahabad with the intention of demonstrating the aircraft at the Industrial & Agricultural

Exhibition due to be held there shortly. It arrived on December 5 and assembled the

planes in five days at a polo ground right next to the Exhibition Grounds. A Local

newspaper reported the first flight in India as follows: -

The first actual flight was successfully attained by Mr. Davies in a Bleriot. On

the 10th of December Mr. Davies had the machine ready and early in the morning circled

the polo ground at a height of twenty five or thirty feet The paper added, Thus

Allahabad has had the distinction of giving the lead not only in India, but also to thewhole of Asian Continent in connection with the latest of scientific wonders.

The aircraft ready to fly weighed five hundred pounds without the pilot and cost

550/=, just under Rs 7,500/= at the rate existing then. Surely this amount was

affordable by many people at the time. The second aircraft flew the next day, December

11, 1910, under the control of the French pilot Henri Piquet and carried the first air

passenger in India. He was one of the sons of the Maharaja of Benares, obviously an

intrepid young man. But The Statesmanof Calcutta, a newspaper still very well respected,

published a different version of the flights in Allahabad. Its issue of December 18

reported that Henri Piquet made the first flight in India on December 17.

According to the paper, Piquet flew the biplane over the confluence of the Ganges

and the Yamuna (Sangam) and also over Allahabad Fort. The newspaper expected

regular display flights to begin on December 20 over the Exhibition Grounds and

continue displays till January 6, 1911. The possibility of joyrides being given was also

mentioned. By then it was estimated that a total of five hours of flying had been

accumulated covering almost 50 miles. Henri Piquet was paid .50/= per hour of flying,

provided each flight lasted longer than two minutes. He is today recognized, especially

by knowledgeable stamp collectors, as the pilot to carry worlds first airmail from

Allahabad to Naini just across the Yamuna River, and back to Allahabad. He carried

6,000 odd letters and postcards, many of which were addressed to celebrities worldwide,

including King George V in England. If you can find one of these postmarked covers or


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stamps with the words First Aerial Post, you can sell it today for the price of a flat or a

house.

Club for fifteen minutes. The same day the Baron flew with a lady passenger,

Mrs.NC Sen, who thus became the first woman in India to get airborne. The paper had

also claimed that Mrs. Sen was the first woman in the world to fly in a plane. But this

claim was quite wrong, as by then in the West it had become fashionable for society

ladies to casually drop their news of having dared a ride in a flying machine. For

December 28, Baron de Caters organized a flying display at Tollygunj. This attracted

almost all the able population of Calcutta willing to forego work or other pleasures for a

day. The Baron did the first few flights in the Farman, gave rides to two ladies andseveral gentlemen. While this was exciting enough, the next day, December 29, Jules

Tyck set two national records in his Bleriot. He became the first to fly over the city,

including directly over the Government House. The second record was set when he

climbed to all of 700 feet above ground level. But Calcutta was in for more excitement.

The observer, Sefton Bruckner sat close behind, a bit higher and with his feet

around the pilot. The reconnaissance sorties were highly successful. But except for a few

generals, including the Commander-in-Chief of the Indian Army and the Chief of Staff,

most army officers did not think that the aeroplanes had much use for them except

perhaps for limited reconnaissance of enemy positions. This attitude persists till today,

only slightly moderated due to introduction of aviation within the army itself. Meanwhile

Baron de Caters and Jules Tyck took their aircraft around the country and gave displays

at many towns.

The show in Bangalore was on February 3, 1911 and in Madras on February

18.The First World War soon interrupted any progress of aviation in India for a while.

Two Indians distinguished themselves in this war. InderLal Roy joined the Royal Flying

Corps in April 1917 at the tender age of just over eighteen years. After receiving his

training and the Kings Commission, he joined No. 56 Squadron in France but was shot

down in December. He was given up for dead but gained consciousness surrounded by

dead bodies. After recovery he returned to flying and shot down nine German planes

before losing his life in his last air combat. He was posthumously awarded the


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Distinguished Flying Cross (DFC), the first Indian to receive the honour. The other

famous Indian pilot was SardarHardit Singh Malik, who had also joined in April 1917.

He was wounded in November but returned to flying in time for the defense of London.

He was demobilized after the war and had a really distinguished career as a diplomat. He

was, not long ago, the senior-most citizen playing golf at the Delhi Golf Club.

The Royal Air Force inaugurated its first station in India at Ambala. But the Indian

Air Force (IAF) was launched by an act of the Governor General on October 8, 1932.

The A Flight of No. 1 Squadron came into existence on April 1, 1933 under the

command of an RAF officer on deputation. Its senior-most Indian officer was Pilot

Officer SubrotoMukherjee who later became IAFs first Indian Commander-in-Chief asan Air Vice Marshal and then took over as the Chief of Air Staff as an Air Marshal. His

successor was Air Marshal AM (Aspy) Engineer. Aspy Engineer had started his flying

career rather early. He and RN Chawla were the first Indians to fly a De Havilland Moth

from India to England. They left on March 3 and arrived on March 20, 1930. Aspys

return flight from England was to contest for the Aga Khan Prize of 500 for flying

between the two countries in either direction.JRD Tata took off in a Gypsy Moth on May

3 from Karachi for England. They crossed each other at Aboukir in Egypt where Aspy

was in some trouble due to problems with some spark plugs. JRD helped him out. Aspy

arrived in India when JRD had just reached Paris. Presumably because he took longer,

JRD Tata came second to Aspy who won the Prize. But JRD was never a loser. After

protracted negotiations with the Government of India, he started his air mail service

under the name of Tata Aviation, later to become Air India. He piloted the first carriage

of mail from Karachi to Bombay

On October 15, 1932. The initial efforts at passenger carriage in India were limited

to British owned or funded airlines, such as the Indian Trans-Continental Airways and

Indian National Airways. But as the need for more air travel facilities became paramount,

permission was given to almost anyone wanting to start an airline. This resulted in a

profusion of quick start airlines, which competed with each other perhaps by cutting fares

and downtime for maintenance. Soon enough the situation became untenable. Eventually

the Air Corporation Act of 1953 was passed nationalising all airlines. Air India

International took over the international traffic and Indian Airlines Corporation the


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domestic. While the two national airlines still operate, the domestic scene changed

recently once again as a result of economic reforms. The prospects of passenger and

cargo traffic in India can only be described now as rosy Meanwhile in December 1940,

Seth HirachandWalchand launched Hindustan Aircraft Limited (HAL) with the help of

an American and the State of Mysore. Dr VM Ghatage, Indias first aircraft designer

soon joined the company and designed the G-1 Glider, the first such venture in India.

However, due to World War II, the G-1 did not get used and DrGhatage became the first

to start teaching aeronautical engineering at the Indian Institute of Science. He rejoined

HAL after independence and designed Indias first powered aircraft the HT-2.

In time, HAL became a Corporation with several Divisions in the country. The firstfighter aircraft designed in the country was the HF-24, though a German team led by

Prof.KW Tank largely managed it. Many aircraft types have been produced under license

and in large numbers. Lately the country has come into its own in designing aircraft,

engines, avionics and accessories. The success story of indigenous designs restarted with

the ALH, now named Dhruv, a helicopter for all the defense services and also meant for

civilian use. This has been followed by the Light Combat Aircraft and the Intermediate

Jet Trainer India has so far produced transport aircraft only under license from foreign

sources. These include the Avro-748, Dornier Do-228 and the Partinavia. But recently

National Aerospace Laboratories developed the Saras, a twin turbo-prop commuter

aircraft. It is expected to obtain its certification in the next two or three years. HAL is

also likely to embark on the development of a Light Armed helicopter and a100-seater

aircraft with capabilities for other roles, perhaps in collaboration with Russia.

Indian Aerospace

The Indian Aerospace Industry is witnessing an unprecedented growth. Hindustan

Aeronautics Limited (HAL), which is fully owned by the Government of India, is the

premier aerospace company in the country. HAL has played a major role in the Defence

aviation of India through design, manufacture and overhaul of fighters, trainers,

helicopters, transport aircraft, engines, avionics and system equipment. HAL is now

ranked 34th in the list of worlds top 100 defense companies.


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HAL is a major partner for the Space programmes of Indian Space Research

Organization (ISRO) and manufactures structures and assemblies for the launch vehicles

and satellites at its dedicated Aerospace Division in Bangalore.

The civil aviation sector in India is growing rapidly. It has recorded annual

growth of over 41% in passenger traffic during in the last two years. In fact, it has

contributed significantly to the growth of international civil aviation sector. The rapid

growth of civil aviation has put extreme pressure on the existing civil aviation

infrastructure. As a result, the thrust is now on modernization of airports,

communications, navigation and surveillance systems for air traffic management, radars

and facilities for Maintenance Repair and Overhaul of aircraft and sub systems.

There are thus enormous potential and huge opportunities for collaboration and

creation of joint ventures in the aerospace sector in India for establishing Maintenance

Repair Overhaul (MRO) facilities for civil and military aircraft, overhaul and

maintenance of aero engines and production of avionics, components and accessories

both in the civil and military aviation sectors. Major global aviation industry are already

eyeing the local market in India and scouting for outsourcing aerospace and defence

products as India is fast emerging as a center for engineering and design services.

1. Hindustan Aeronautics Limited (HAL)HAL, a Defense PSU, is a major player in the global aviation arena. It has built

up comprehensive skills in design, manufacture and overhaul of fighters, trainers,

helicopters, transport aircraft, engines, avionics and system equipment. Its product track

record consists of 12 types of aircraft from in-house R&D and 14 types by license

production inclusive of 8 types of aero engines and over 1000 items of aircraft system

equipment(avionics,mechanical,electrical).

HAL has produced over 3550 aircraft, 3650 aero-engines and overhauled around

8750 aircraft & 28400 engines besides manufacture/overhaul of related accessories and

avionics. The Company has the requisite core competence base with a demonstrated

potential to become a global player. HAL has 19 production divisions for manufacture


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and overhaul of aircraft, helicopters, engine and accessories. It has also 9 R&D Centres

to give a thrust to research & development.

HALs major supplies/services are to Indian Air Force, Indian Navy, Indian

Army, Coast Guard and Border Security Force. Transport aircraft and Helicopters have

been supplied to Airlines as well as State Governments. The Company has also achieved

a foothold in export in more than 20 countries, having demonstrated its quality and price

competitiveness. HAL is a major partner for the Space Vehicle programmes of the Indian

Space Research Organization. It has also diversified into the fields of industrial & marine

gas turbine business and real-time software business.

HAL is now ranked 34th in the list of worlds top 100 defense companies. HAL

continues its growth with a sales turnover of 2.1 Billion US Dollars during the financial

year 2007-08. It has doubled its turnover in 3 years. It has declared profit before tax of

538 Million US Dollars. The company has made supplies to almost all the major

aerospace companies in the World like Airbus, Boeing, IAI, IRKUT, Honeywell and

Ruag etc.

All the production Divisions of HAL have ISO 9001-2000 accreditation and

sixteen divisions have ISO-14001-2004 environment management system (EMS)

certification. Six divisions have also implemented the aerospace sector quality

management system requirements stated in As 9100 standard and obtained certification.

Four of these divisions have also obtained NADCAP certification (National Aerospace

Defence Contractors Accreditation programme USA) for special processes such as

NDT, heat treatment, welding etc.

In order to meet with the challenges in the 21st Century, the Company has

redefined its mission as follows:

HAL has successfully designed & developed the Advanced Light Helicopter,

which is currently being operated by the Defense Services of India and private

Companies. The Advanced Light Helicopter also has great export potential. Apart from

licence production of front line fighters like Su-30 MKI, HAL is also developing the

following products through design and development:


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1. Intermediate Jet Trainer (IJT)

2. Light combat helicopter (LCH)

3. Weaponization of Advanced Light Helicopter (ALH)

4. Tejas-Light Combat Aircraft

2. Indian Space Research Organization (ISRO)

Government of India established the Department of Space in 1972 to promote

development and application of space science and technology in the country for the

socio-economic benefits. Indian Space Research organization (ISRO) is the primary

agency under the Department of Space for executing space programmes. During the early

seventies, India undertook demonstration of space applications for communication,

television broadcasting and remote sensing building experimental satellites namely,

APPLE, Bhaskaraand experimental satellite launch vehicles, SLV-3 and ASLV.

Today, India has an impressive array of achievements with the largest

constellation of domestic communication satellites called Indian National SatelliteSystem (INSAT) in the Asia pacific region with about 210 transponders in orbit. And,

India has plans to augment the capacity with the launching of INSAT satellites and

increase it to about 500 in 4-5 years to meet its growing needs.

India also has the largest constellation of earth observation satellites called Indian

Remote Sensing (IRS) satellites with better than one meter resolution. IRS data is being

used for a variety of applications such as crop yield estimation, drinking water missions,

waste land development, forest cover mapping and a host of other applications benefiting

the common man. Using INSATs, besides TV Broadcasting, telecommunications and

meteorological applications societal applications such as tele-education, telemedicine

applications have been operationalised. Village Resource Centers (VRCs) combining the

services of IRS and INSAT satellites for providing an array of services have been

established. India, today is considered as a leader in the application of space technology.

INSAT and IRS satellites are also providing invaluable services in disaster management.


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To put the IRS and INSAT satellites into orbit, India has developed two work

horse launch vehicles namely the Polar Satellite Launch Vehicle (PSLV) and Geo-

synchronous Satellite Launch Vehicle (GSLV). PSLV weighing about 300 tons at lift off

has the capability to put 1500 kg satellite in polar sun-synchronous orbit. PSLV with

eleven consecutively successful launches has demonstrated its high reliability. PSLV has

launched eight satellites for various customers from abroad. GSLV with four successful

flights is capable of launching 2200 kg satellites into geo-stationary Transfer Orbit. India

has also created world class facilities at its space port in Sriharikota near Chennai with

launch pads besides a host of test facilities for testing satellites and launch vehicle

systems.

3. Defence Research Development Organization (DRDO)

DRDO is a network of 52 Defence Laboratories in India which are deeply

engaged in developing critical defence technologies covering various disciplines like

aeronautics, armaments, electronics, combat vehicles, engineering system,

instrumentation, missiles, advanced computing and simulation, special materials, naval

systems, life sciences, information systems and agriculture.

Presently over 5000 scientists and about 25000 other scientific technical and

supporting personnel back the organization. Several major projects for the development

of missiles, armaments, light combat aircrafts, radars, electronic warfare systems etc are

on hand and significant achievements have already been made in several such

technologies.

4. Bharat Electronics Limited (BEL)

BEL was established in 1954 to meet the specialized electronic needs of the

countrys defence services, is a multi-product, multi-technology, multi-unit company. It

serves the needs of domestic and foreign customers with the products/services

manufactured in its nine state-of-the-art ISO 9001/2 and ISO 14000 certified

manufacturing plants in India.


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BEL manufactures a wide repertoire of products in the field of Radars, Naval

systems, Defence Communication, Telecommunication and Broadcasting, Electronic

Warfare, Opto Electronics, Tank Electronics and Electronic Components. With the

expertise developed over the years, the company also provides turnkey systems solutions

and Electronic Manufacturing Services (EMS) on Build to Print and Build to Spec

basis. BEL has become a US $ 1 Billion company in the financial year 2007-08.

5. Bharat Dynamics Limited (BDL)

BDL is fully owned by the Government of India, was established in 1970. BDL

manufactures guided weapons & related test equipment, Launchers, under water weapon

systems and decoys for the Indian Defence Services. BDL is the nominated Production

Agency for the indigenous Integrated Missile Development Programme.

Starting with production of 1st Generation Anti-tank Guided missiles, the

Company has grown into a multi technology and multi product organization.

Collaborative association with DRDO and world leaders in missile manufacturing has

enabled BDL assimilate critical technologies and emerge as a globally competitive and

reliable defence equipment manufacturer.

8. Mishra Dhatu Nigam Limited (MIDHANI)

MIDHANI an ISO 9002 company - caters to domestic and international

customers with modern metallurgical facilities and high degree of technical competence

for manufacturing its diverse product mix of super alloys, titanium alloys, special

purpose steels, electrical resistance &soft magnetic alloys, molybdenum and other alloys

meeting the stringent requirements of the strategic sectors like defense, aerospace, powerand general engineering etc.

MIDHANI employs its highly integrated and flexible manufacturing facilities to

produce a wide variety of special metals and alloys in various mill forms such as ingots,

forged bars, hot rolled steels and bar, cold rolled sheets, strips and foils, wires, castings

andtubes.


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9. BrahMos Aerospace

BRAHMOS-supersonic cruise missile is designed for use in multiple platforms-

ships, silos, mobile launchers, aircrafts and submarines against land and sea targets.

BRAHMOS is the World leader flying all through supersonic with maneuverable

trajectories ensuring no reaction time to the enemy and a lethal punch owing to huge

kinetic energy of impact.

BRAHMOS has attained 100% success rates in all flight trials proving the

adequacy of the missile system to a maximum range of 290 km with high accuracy and

lethality establishing the reliability of the system in all weather conditions. Indian Navy

& army have started the induction of the weapon system. The system will also be

exported to a few friendly countries.

2.4 State Scenario

Bangalore has been the home of aviation and aerospace manufacturing and

cutting edge R&D in India. With India's first aerospace SEZ in Belgaum, Karnataka is

poised to grow into a global centre with access to a quality eco system.

1. The state industrial policy of 2009-14 facilitates investment in large projects

through fiscal concessions, land bank and single window clearance.

2. State SEZ policy provides a smooth path for investment in projects in special

economic zones.

3. Positive business environment, no. 1 in web investment climate report.

4. Excellent government support through institutions like HAL, NAL, GTRE etc.

Providing research capabilities.

5. India's first aerospace SEZ at Belgaum in 2009 promoted by quest global; state

government is planning another SEZ at Devanahalli, near Bangalore.

The state is home to skilled manpower with the third largest strength of engineering

colleges and highest number of vocational training institutes. The state leads in research


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and development and engineering design capabilities, backed by the presence of

internationally renowned institutions - HAL, DRDO, ISRO, NAL, IISC - all based in

Bangalore.

The state is the third largest steel manufacturing state and important aluminum

producer in India and also has the highest number, 32 in total, of CMM level 5 certified

software companies, a strong resource for the aerospace industry.Global majors have

research and design centres in Karnataka: airbus is expanding its engineering centre in

Bangalore, from present strength of 120 employees to more than 400 by 2012.

1. Government support for projects through a 50,000 acre land bank across 5

industrial corridors.

2. Infrastructure focus with projects like Bangalore metro, mono rail, pride, ports

etc. Raising connectivity

3. Expansion of airports - airports within 100 Kms of each district HQ, 20

helitourism destinations etc. To boost aviation services.

4. 103 rdcentres, classified by wef.as an innovation cluster.

5. Belgaum SEZ is expected to yield aerospace-related business worth around Rs

2,500 Crore, create more than 7,000 jobs and infuse $500 million into the

economy in ten years.

Selected advantages that Karnataka offers as a hub for aerospace activities

include:-

1. Presence of scientific and technical institutes: The presence of institutions like the

Indian Institute of Science and Indian Institute of Management, enable the

development of well-qualified technical experts who can be absorbed into

aerospace majors operations.

2. Deep aerospace expertise: Major aerospace organizations are located around

Bangalore, including HAL, National Aerospace Laboratories (NAL), QuEST

Global, Taneja Aerospace and Aviation Ltd, Dynamatic Aerospace, Air Works

India Engineering Pvt. Ltd., The Society of Indian Aerospace Industries and


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Technologies, etc. Thus an existing supply chain ecosystem has been developed

by these organizations.

3. IT expertise and skill sets: Since independence in 1947, Bangalore has developed

into one of India's major economic hubs and is today known as the Silicon Valley

of India. Karnataka boasts the presence of major IT companies such as HCL,

Infosys, Tata Consultancy Services, Wipro, QuEST among others. Karnataka-

based professionals have developed deep IT domain experience. Bangalore is the

worlds fourth-largest technology cluster.

4. Manufacturing Expertise: Bangalore is a leader in heavy manufacturing due to the

presence of PSUs, software companies, aerospace companies,

telecommunications companies, machine tools manufacturers, heavy equipmentmanufacturers, defence establishments, etc. Bangalore serves as headquarters to

several public manufacturing heavy industries such as HAL, NAL, Bharat Heavy

Electricals Limited (BHEL), Bharat Electronics Limited, Bharat Earth Movers

Limited (BEML) and Hindustan Machine Tools (HMT).

5. Proximity to vendor base: There are approximately 2,000 small and medium

enterprises focused on component manufacturing, tooling and testing equipment,

and assembling. These companies meet the demand of HAL, NAL and ISRO in

addition to global aerospace firms.

6. Government support: The State Government is investor-friendly and has

simplified procedures and fast tracked approvals through Single Window

Mechanism and the State High Level Clearance Committee (for investments

greater than INR 50 crore) with the objective of faster clearance of proposals.

Further, the State has been making efforts to ensure that the infrastructure

requirements of the industry are met and has proposed to set up an aerospace

SEZ, near Bangalore International Airport at Devanahalli, where 1000 acres are

to be devoted to expansion of aerospace activity, particularly MRO outsourcing.

QuEST Global has already oriented its SEZ for Precision Engineering to become

Indias first aerospace SEZ in Belgaum in November 2009. The State

Government is also promoting setting up of an aerospace university in partnership

with industry.


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At the central level, statutory problems and the limit of 26 per cent FDI in offsets is a

barrier to investments. At the local level, value-added tax, rationalisation of taxes to

favour the sector, provision of quality power and land are said to be the chief issues that

are the need of the hour though. The infrastructure issues too have been posing a hurdle

to developing the sector in the state. There is enough manpower to leverage on, said

Raman, adding, Ecosystem is already there in the space. Even if we are late, there is

ample time to catch up with other states that may have stolen a march over Karnataka.

We can develop an aero-component sector.

The aerospace park SEZs will be eligible for benefits and tax sops applicable to such

export zones, Karnataka industry principal secretary V P Baligar said at the session,

organised by the Karnataka chapter of the Confederation of Indian Industry .


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CHAPTER III

COMPANY PROFILE

3.1 Introduction

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. The Government of India

became a shareholder in March 1941 and took over the Management in 1942.

Today, HAL has 19 Production Units and 10 Research & Design Centres in 8

locations in India. The Company has an impressive product track record - 15 types of

Aircraft/Helicopters manufactured with in-house R & D and 14 types produced under

license. HAL has manufactured over 3658 Aircraft/Helicopters, 4178 Engines, Upgraded

272 Aircraft and overhauled over 9643 Aircraft and 29775 Engines.HAL has been

successful in numerous R & D programs developed for both Defense and Civil Aviationsectors.

Over the past five decades, HAL has spread its wings to encompass various

activities in the areas of design, development, manufacture and maintenance of Light

Aircraft, Piston and Jet Engine trainers, Advanced Fighter / Combat Aircraft,

Helicopters, Commercial Aircrafts, Jet Engines, Aircraft systems, Accessories and

Avionics. The manufacturing divisions are fully packed by Research and Design center,

new initiative in R&D such a Design and Development of the Advanced Lighter

Helicopter (ALH), Light Combat Aircraft (LCA), New Jet Trainer (HJT-36) and update

programme for MIG and Jaguar Aircraft, as well as co-production of Civil Aircraft, and

many other joint ventures in several high tech field are expected to make HAL fly still

higher in this century.

Hindustan Aeronautics Limited is the largest Aerospace complex in south-east

Asia today, plays crucial role in Indias ambitious plans for broad base industrialization

with emphasis on not only self-reliance in defense production, but also to become an


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international partner in Civil Aircraft manufacturing and maintenance. HAL joins hand

with Indian defense forces to provide vigilance over the countrys extensive borders and

skies through its sophisticated manufacturing overhaul and maintenance capabilities. It is

also towards expanding its activities in Civil Aircraft and Helicopters and Nations space

programme.

Mission

To become a globally competitive aerospace industry while working as an

instrument for achieving self-reliance in design, manufacture and maintenance of

aerospace equipment, civil transport aircraft, helicopter and missiles and diversifying to

related areas, managing the business on commercial lines in a climate of growing

professional competence ".

Values

1. Customer Satisfaction

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.

2.

Commitment To Total Quality

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.

3. Cost And Time Consciousness

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.

4. Innovation And Creativity

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.


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5. Trust And Team Spirit

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.

6. Respect For The Individual

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.

7. Integrity

We believe in a commitment to be honest, trustworthy, and fair in all our

dealings. We commit to be loyal and devoted to our organization. We will practice self-discipline and own responsibility for our actions. We will comply with all requirements

so as to ensure that our organization is always worthy of trust.

Motto

a) Integrity.

b) Credibility.

c) Customer satisfaction.

Now HAL is a public sector unit fully owned by Government of India. The Board

of Directors manages the company, which has a full time Chairman. The Board is

Autonomous except certain powers reserved for the decision of the President of India,

which includes:-

1. Approval of operating plans and capital budgets.

2. Approval of foreign collaboration agreements.

3.

Board of Directors / Chairman.

A wide variety of precision items, equipment and assemblies are exported by

HAL to leading Aircraft and Airborne equipment manufacturers in UK, Europe, Canada

and USA. Future projects of the Company:

1. Basic Turboprop Trainer (HTT-35)

2. Soft Exports.

3.

Transport Aircraft.


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4. Aviation Sector.

5. HAL, BAe Joint Venture.

6. HAL, Russia Joint Venture.

HAL Locations

HAL groups divisions are spread over different parts of the country and also

abroad viz., Bangalore, Korwa, Koraput, Kanpur, Hyderabad, Lucknow, Delhi, Mumbai,

Chennai, Vizag, Moscow and in London. The HAL groups units located in different

places are broadly classified into 4 groups. They are:

1. Bangalore Divisions

2.

Accessories complex.

3. MIG complex.

4. Liaison offices.

3.2.Background and Growth of Company

The history and growth of the Hindustan Aeronautics Limited is synonymous

with the growth of Aeronautical industry in India over the past 60 years. The Company

which had its origin as the Hindustan Aircraft Private Limited was incorporated on 23

Dec 1940 at Bangalore by Shri Walchand Hirachand a farsighted visionary in association

with the Government of Mysore with an Authorised Capital of Rs.4 Crores and with the

aim of manufacturing aircraft in India. In March 1941, the Government of India became

one of the shareholders in the Company holding 1/3 of its paid-up capital and

subsequently took over its management in 1942. In collaboration with the Inter-

Continental Aircraft Company of USA, Hindustan Aircraft Private Limited commenced

its business of manufacturing of Harlow Trainer, Curtiss Hawk Fighter and Vultee

Bomber Aircraft. However, the aircraft manufacture programmes were abandoned a year

later in favour of Overhaul & repair of aircraft to support the Second World War effort.

And then Hindustan Aircraft Private Limited came under the administrative control of

Ministry of Industry & Supply.

In January 1951, Hindustan Aircraft Private Limited was placed under the

Administrative control of Ministry of Defense. In August 1963, Aeronautics India


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Limited (AIL) was incorporated as a company wholly owned by the Government of India

with facilities at Nasik, Koraput and Hyderabad to undertake the manufacture of the

MIG-21 aircraft under license from Russia. In June 1964, the Aircraft Manufacturing

Depot which was set up in 1960 as an Air Force unit to produce the Airframe for the HS-

748 transport aircraft was transferred to AIL. The two companies i.e. Hindustan Aircraft

Private Limited and Aeronautics India Limited were merged on 1st

Oct 1964 to form

Hindustan Aeronautics Limited (HAL) with its principal business being design,

development, manufacture, repair and overhaul of aircrafts, helicopters, engines and

related systems like avionics, instruments and accessories.

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

below-


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Fig.No 3.1 Organizational Growth of HAL


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3.3 Nature of Business Carried:-

HAL is one of the largest aerospace companies in Asia with its annual turnover to

be running above US$2 billion. More than 40% of HALs revenues come from

international deals to manufacture aircraft engines, spare parts, and other aircraft

materials. Over the last six decades, it has grown progressively into an integrated

aerospace organization and has spread its wings to cover various activities in the area of

design, development, manufacture and maintenance of advanced fighters, pistons and jet

engine trainers, commercial aircraft, helicopters, associated aero-engines, aircraft

systems, equipment and avionics. Below is a partial list of major operations being

undertaken by HAL.

HAL has made substantial progress in its current projects :

1. Advanced Light Helicopter Weapon System Integration (ALH-WSI)

2. Tejas - Light Combat Aircraft (LCA)

3. Intermediate Jet Trainer (IJT)

4. Light Combat Helicopter (LCH)

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

a. PSLV (Polar Satellite Launch Vehicle)

b.

GSLV (Geo-synchronous Satellite Launch Vehicle)

c. IRS (Indian Remote Satellite)

d. INSAT (Indian National Satellite)

Apart from these, other major diversification projects are manufacture & overhaul of

Industrial Marine Gas Turbine and manufacture of Composites.


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HAL has formed the following Joint Ventures (JVs) :

a. BAeHAL Software Limited

b. Indo-Russian Aviation Limited (IRAL)

c. Snecma-HAL Aerospace Pvt Ltd

d. SAMTEL-HAL Display System Limited

e. HALBIT Avionics Pvt Ltd

f. HAL-Edgewood Technologies Pvt Ltd

g. INFOTECH-HAL Ltd

h. TATA-HAL Technologies Ltd

i. HATSOFF Helicopter Training Pvt Ltd

j.

International Aerospace Manufacturing Pvt Ltd

k. Multi Role Transport Aircraft Ltd

Several Co-production and Joint Ventures with international participation are under

consideration.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guard and

Border Security Force. 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 was conferred NAVRATNA status by the Government of India on 22nd June

2007.The Company scaled new heights in the Financial Year 2010-11 with Turnover of

Rs.13, 116 Crores and PBT of Rs 2,841 Crores. HAL has won several International &

National Awards for achievements in R&D, Technology, Managerial Performance,

Exports, Energy Conservation, Quality and fulfillment of Social Responsibilities.

Social Responsibilities Undertaken by the Organization

The social responsibilities undertaken by the organization are as follows:-

1. Adoption of villages where the organization sets up schools, hospitals, road,

electricity, waterlines etc.

2. Undertakes pulse polio campaign in HAL hospitals and outside.


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3. Tree plantation.

4. Volunteers for operation of the blind or cataract operation.

5. Built schools for mentally challenged.

6.

Helps the schedule caste and schedule tribe association for their upliftment.

3.4.Awards and Recognitions

Some of the prestigious Awards received during 2009-10 & 2010-11 are:

2009-10

1.

MoU Excellence Award for the top performing CPSEs for the year 2006 -07(TopTen Public Sector Enterprises). HAL has been receiving awards consecutively since

2001-02.

2. RakshaMantris Award for Excellence for the year 2007-08 under the Institutional

category.

3. Regional Export Award from EEPC, India for the year 2007-08.This award was

presented on 21st Feb 2010 in Maldives.

4. The Supplier of the year 2009 by Boeing, USA.

5. Foundry & Forge Division, Bangalore conferred with International Diamond Star

Award for Quality in the realm of customer satisfaction, leadership, innovation and

technology as established in QC100 TQM Model.

6. Foundry & Forge Division, Bangalore conferred with GargiHuttenes-Albertus Green

Foundry Award of the year 2008-09 by Institute of Indian Foundrymen.

2010-11

1.

MoU Excellence Award for the top performing CPSEs for the year 2008 -09.

2. RakshaMantri's Award for Excellence for the years 2008-09, for Export under the

Institutional category.

3. International Aerospace Awards (instituted by SAP Media Worldwide Ltd) as mark

of recognition to the Indian Industry for excellence in innovation, indigenous

technology and entrepreneurship under the following categories:-

a. Outstanding contribution to the Defence Industry.

b.

Most Influential Company of the year


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c. Excellence in Indigenous Technology

d. Excellence in Exports

4. Golden Award for Quality and Business Prestige from Otherways Management

Association Club, France

5. Performance Excellence Award -2009 (Organization) for the year 2008-09 by

Institution of Industrial Engineering.

6. Foundry & Forge Division, Bangalore conferred with Casting of the Year 2010

award to Main Gear Box (MGB) casting of ALH from the Institute of Indian

Foundrymen.

7. Aerospace Division, Bangalore: Runner-Up in ViswakarmaRashtriyaPuraskar and

National Safety Award 2008 instituted by Ministry of Labour, Government ofIndia.

8. Aerospace Division, Bangalore was awarded Gold Medal by the Society of

Aerospace Manufacturing Engineers (SAME) for the year 2010 for outstanding

contribution in the field of Aerospace Manufacturing.

9. Engine Division, Bangalore won Rajiv Gandhi National Quality Awards 2009,

instituted by Bureau of Indian Standards, New Delhi for Commendation for Large

Scale Manufacturing Industry-Engineering & Others.

10.Avionics Division, Korwa conferred with IMTMA-SIEMENS Productivity

Championship Award for excellence and outstanding work in the area of

productivity.

11.Shri G.C Bhagwanani, Chief Supervisor, HAL- TAD, Kanpur, was awarded the

Prime Ministers Shram Shree Award for 2006 on 15th Sept 2010.

12.ShriA.Selvaraj, AGM (Mfg), Foundry & Forge Division, Bangalore was awarded the

Foundryman of the year 2010 by the Institute of Indian Foundrymen.

13.Shri Mohan Lal, Chief Supervisor of Accessories Divison, Lucknow was selected for

Prime Ministers ShramVir for the year 2009.


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Fig.No 3.2 Showing The Organizational Structure at HAL

Chairman

Business Heads (5)

Managing

Director

(Bangalore

Complex)

AircraftDivision

[Incl. Flt.

Ops. (FW)]

EngineDivision

OverhaulDivision

Foundry &Forge

Division

AerospaceDivision

IMGT

AirportServices

Centre

LCA-LSPProjectGroup

IJT-LSPProjectGroup

Facilitiesmgt div

Medical &

Health

CentralMaterials

&

ProcessesLab

Managing

Director

(MiGComplex)

AircraftMfg.

Division,Nasik

AircraftOverhaul

Division,Nasik

EngineDivision,

Koraput

SukhoiEngine

Division,Koraput

AircraftUpgrade

R & DCentre,Nasik

GasTurbine

R & D

Centre,Koraput

Managig

Director

(Accessories

Complex)

TransportAircraft

Division,Kanpur

AvionicsDivision,

Korwa

Accesso-ries Div,

Lucknow

AvionicsDivision,

Hyderabad

TransportAircraft

Kanpur

AerospaceSystems

Lucknow,

korwa

Managing

Director

(Helicopter

Complex)

HelicopterMfg.

Division

Helicopter

MRO

Division

Barrack-

pore

Division

CompositeMfg.

Division

RotaryWing

R & DCentre

Director

(Design &

Devlpmnt)

Aircraft

R & DCentre

Mission &Combat

System

Engine TestBed

R & DCentre

Functional Heads (3)

Director

(Corp.Plg.&

Marketing)

Planning

Projects

Marketing

Quality

CustomerServices

Mgt

Services

Indigen-

ization

IT

Director

(Finance)

Finance

&

Accounts

IntegratedMaterials

mgt

Company

Secretariat

Director

(Human

Resources)

Hunam

Resource

HAL

Mgt

Academy

Vigilance


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Fig. No. 3.3 Structure of Board of Directors


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Fig.No 3.4 Divisions of Hindustan Aeronautics Limited


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3.5.Major Divisions in the Bangalore Complex

3.5.1 Aerospace Division

This division manufactures space worthy structure like Satellite Launch Vehicle inter

stages, propellant tanks and separator mechanisms for ASLV, PSLV,GSLV, IRS and

INSAT series.

3.5.2 Engine Division

This division with over three decades of experience has acquired the state of the

art technology in manufacture, overhaul and maintenance of Aero engines.This division

currently manufactures, overhauls Adour MK 811/Adour MK 804, Garret TPE-315-5,Artoste III B, Dart and Orpheus engines. It is also and authorized service center for

Garret-TPE-331-5 series. The division has also diversified into manufacture/repair of

Industrial Gas Turbines.

3.5.3Helicopter Division

This division was set up to manufacture, repair and overhaul helicopter for the

defense sector as well as civil sector. The division undertakes manufacture, repair and

maintenance of Chetak and Cheetah Helicopters. Currently, the division is engaged in

production of Advanced Light Helicopter.

3.5..4Overhaul Division

Established as a repair and overhaul base for fighters, it has so for overhauled

over 40 varieties of Aircrafts, major servicing and overhaul of associated ratable in

respect of Kiran MK-I,MK-IA/MK II, Jaguar and Mirage 2000 are undertaken.

Barrackpore branch factory, and unit of Overhaul Division undertakes servicing of

Chetak, cheetah & AN-32 Aircraft.

3.5.5Foundry & Forge Division

The divisions Capabilities include precision castings, sand castings, and

precision forgings and ring forgings. The division is also involved in the development of

materials and alloy for Aerospace and defense applications.


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3.6. Major Divisions in the Accessories Complex

3.6.1 Hyderabad Division.

This division undertakes production and servicing of Avionics, Air route

surveillance for IAF/Army/Navy/Coast Guard/Space and other civil applications. The

Avionics design centre is part of this division and it undertakes design and development

of communication systems, Navigation systems, Airborne Radar Systems, Ground radar

systems and specific to type test equipment.

3.6.2 Kanpur DivisionOriginally set up for the manufacture of HS-748 Aircraft, today the division

manufactures HPT-32 and dornier-228 Aircraft. The division also undertakes repair,

overhauls and maintenance of civil aircrafts including HS-748, Fokker-27, Gliders, DO-

228 and HPT-32.

The division is gearing up for co-production of civil aircraft. The division is supported

by a R & D center.

3.6.3 Lucknow Division

The manufacturing range of the division includes the mechanical and Hydro

mechanical accessories. Fuel system accessories and instruments accessories for the

complete range of aircraft produced in HAL. In addition, the division is manufacturing a

wide range of Ground Support Equipment. The division has also set up accessories

design center, which undertakes indigenous development of accessories, required for the

aircrafts, engines and tanks for the services.

3.6.4 Korwa Division.

The capability of this division covers the manufacture, repair and maintenance of

Advanced Avionics systems for military aircraft of Eastern Origin and Western Origin

covering Inertial Navigational System, head of display, Weapon Aiming Computers,

combined map electronic display, Laser Ranger and market target seeker, integrated

navigation and sighting complex. Production capabilities also include manufacturing and

repair of Electronic modules using ATE.


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3.7. Major Divisions in the MIG Complex

3.7.1 Nasik Division

Established as a manufacturing base for MIG series of aircraft, the division has

manufactured/overhauled a large number of variants of MIG 21 BIS and MIG 27. It also

manufactures flexible fuel tanks, metallic drop tanks and honey comb structures. R& D

Center of this division supports the design liaison activities.

3.7.2Koraput Division

The R11 series engines, R 25 engines and R 29B engines are manufactured and

overhaul at koraput division. Facilities have also been set up for the overhaul of RD 33

engines. The division has also excellent in hot forging and precision die casting facilities

for both ferrous and non-ferrous alloys.

3.8. Major Products

Jaguar International

HAL commenced production of Jaguar International, deep penetration strike and

battlefield tactical Support Aircraft in 1979, under license from British Aerospace,

including the engine, accessories and avionics.

Jaguar aircraft is designed with 7 hard points (4 under wing, 2 overwing and 1

under fuselage) capable of carrying large variety of weapons in different combinations to

meet the Customers needs.

1. Manufacturing of Kiran MK II basic jet trainer.

2. Manufacturing of Composite/Metal drop tanks.

3. Manufacturing of dornier 228 landing gear, airbus A320/321 forward pax

doors.

4.

Manufacturing of Boeing 757 owx doors pylons for tornado aircraft.


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5. Upgraded Aircraft programme and Pilotless Target AircraftLakshya

6. Manufacturing of Advanced Jet Trainer - HAWK.

7. Manufacturing of Combat Aircraft Trainer and Medium Multi Role Combat

Aircraft.

8. Boeing 777 Main Landing Gear Uplock Box Assembly.

9. Boeing-767 Bulk Cargo Door .

10.Any other services / manufacturing activity which is available in the Division

Products of Hindustan Aeronautics Limited


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Fig.No 3.5 Products of Hindustan Aeronautics Limited

3.9. Major Customers (Domestic and International)

3.9.1 Domestic

3.9.1.1 Defense and Space:

1. Indian Air Force

2. Indian Army

3. Indian Navy

4. Indian Coast Guard

5. Indian Space Research Organization

6. Defense Research & Development Organization

7. Ordance Factory Board

3.9.1.2 Civil

1. Border Security Force

2.

Oil & Natural Gas Cooperation of India3. Government of Karnataka

4. Government of Jharkhand

5. Government of Maharashtra

6. Geological Survey of India

7. Bharat Heavy Electricals Ltd.


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3.9.2 Exports:

1. Airbus Industrie, France

2. Boeing, USA

3. Coast Guard, Mauritius

4. Ecuadorian Air Force, Ecuador

5. ELTA, Israel

6. GE Aviation, USA

7. Hamilton Sundstrand, USA

8. Honeywell International, USA

9. Israel Aircraft Industries, Israel

10. Mauritius Police Force, Mauritius

11. Moog Inc. USA

12. Namibian Air Force, Namibia

13. Nepal Army, Nepal

14. RAC MIG, Russia

15. Rolls Royce Plc, UK

16. Royal Air Force, Oman

17.

Royal Malaysian Air Force, Malaysia

18. Royal Thai Air Force, Thailand

19. Ruag, Germany

20. Rosoboronexport, Russia

21. Suriname Air Force

22. Turbomeca, France

23. Vietnam Air Force, Vietnam


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3.10. Future Plans

3.10.1 Kaveri Engine

Kaveri, the designated engine for LCA, is being developed by GTRE, Bangalore.

Various divisions of HAL are involved in the development and certification. The engine

will be manufactured at engine division, HAL. The materials for engine components

include high strength super alloy such as inconel on the hot end side and TI-64 on the

cold end. The engine is twin spool, by pass type designed to provide dry thrust of 5291

kg reheat thrust of 8264 kg.

3.10.2 Engines for AJT, IJT and ALH

The engines for advanced Jet trainer project and intermediate Jet trainer project

will also be manufactured by engine division in the near future. Further, the division will

be participating in the co-design & co-production of engine for Advanced Light

Helicopters.

3.10.3 Diversification

Manufacture of auxillaries such as 750 kw turbo alternator, forced draught turbo

blowers and main circulating turbo pumps for leander class frigates form part of

diversification.

3.11. Departments

1. Human Resource Department

2. Bills Payable Department

3. Bills Receivable Department

4. Payroll Department

5. Purchase Department

6. Stores Department

7. Facility Department

8. Progress Department

9. Management Service Department (MSD)

10.

Cost Accounts Department


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11.Material Accounts Department

12.Book Keeping Department

13.I T1 Department

14.

Scheduling Department

15.Civil Maintenance/ Electrical Department

16.Design Liaison Engineering Department (DLE)

17.External Outsourcing Department

18.Security Department

19. Vigilance Department

3.11.1 HUMAN RESOURCE DEPARTMENT

Fig. No 3.6. Structure of Human Resource Department

Chairman

Director HR

ExecutiveDirector HR

AdditionalGeneral

Manager (AGM)

Chief Manager(CM)

Manager

Deputy Manager

HR Officer

Employees Employees Employees Employees Employees

workman


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The raison de eter of Human Resource Development (HRD) is to create context

for technological and managerial excellence in a globally competitive Aerospace

Industry. The changing environment, rapid technological changes accelerated a paradigm

shift from licensed production to R&D based production strategies of co-development ,

co-production, joint ventures, outsourcing, ancilliarisation, Public private Partnership,

focused diversification to civilian, export markets. The overall objective of the Human

Resource Development plan is to build a vibrant performance and learning culture that

meets the challenges of customer, quality cost, delivery and excellence. Recruitment and

retention of competent human resources and develop high commitment and a sense of

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