Hindustan Aeronautics Limited (HAL) has signed a memorandum of understanding (MoU) with a French aerospace engine firm Safran Helicopter Engines to extend its cooperation and explore opportunities for new helicopter engines in civil and military markets.
In an interview with CNBC-TV18, R Madhavan, CMD, Hindustan Aeronautics, shed light on the joint venture and resulting opportunities. Madhavan affirmed that MoU with Safran could yield revenue of over USD 1 billion in the next 5 years. He also explained that the company will be looking at newer products through the joint venture with Safran.
“It will have more than a billion-dollar of revenue in about five years from now and yearly revenues are also good; we are assessing that in peak, it will produce about 150 engines in a year starting with 50 engines in the coming year, 23-24 onwards,” he said.
On the order book at hand, Madhavan said that most of it can be executed in FY23-24. Additionally, he mentioned that he expects to see a growth in the range of 6-7% in the current fiscal (FY22).
He said, “We feel that our position is quite strong and this year also, we will have a growth which is at least 6-7% over last year and we intend to continue with the same growth rate next year also.”
Safran S.A. is a French multinational aircraft engine, rocket engine, aerospace component and defence corporation. It was formed by a merger between the aircraft and rocket engine manufacturer and aerospace component manufacturer group SNECMA and the security company SAGEM in 2005.
In 2018 Safran took control of Zodiac Aerospace, significantly expanding its aircraft equipment activities. Its headquarters are located in Paris. Employing over 95,000 people and generating 24.64 billion euros in sales in 2019, Safran operates in the aircraft propulsion and equipment, space and defence markets.
(With Inputs from CNBC TV18)