Hindustan Aeronautics hits new peak, up 4% on signing pact with Airbus

HALand Airbus have signed a contract for establishing Repair and Overhaul (MRO) facilities for A-320 family of aircrafts.

Shares of Hindustan Aeronautics (HAL) hit a new high of Rs 2,103.55, up 4 per cent on the BSE in Friday’s intra-day trade in an otherwise range-bound market after the state-owned defence company and Airbus signed a contract for establishing Repair and Overhaul (MRO) facilities for A-320 family of aircrafts. In comparison, the S&P BSE Sensex was down 0.17 per cent at 64,721 at 11:50 AM.

Under the collaboration, Airbus will supply the A-320 family tool package and offer specialised consulting services to HAL to establish MRO facility for A-320 family of aircrafts. The partnership between HAL and Airbus will support the growing demand for MRO services in the country and expand the commercial fleet, HAL said in an exchange filing.

The MRO facility would be established and ready for aircraft induction by November 2024 with required DGCA approval.

HAL said this collaboration with the largest European aircraft manufacturing company will strengthen Make-in-India mission by achieving self-reliance in the aircraft Maintenance, MRO industry in India. HAL intends to establish an integrated MRD services in India and seeks to provide the commercial airlines a one stop MRO solution, it added.

Thus far in the calendar year 2023, the stock price of HAL has appreciated by 65 per cent, as compared to 5.8 per cent rise in the S&P BSE Sensex.

On October 27, HAL and Safran Aircraft Engines signed a Memorandum of Understanding (MoU) to develop industrial cooperation in Ring forging manufacturing for commercial anginas. HAL will produce LEAP (Leading Edge Aviation Propulsion. Powering Airbus A320 Neo family and Boeing 737 Max) engine Forgings at its Foundry a Forge facility in Bengaluru as part of the MoU, the company said.

Meanwhile, Indian Defence Sector which was so far contributing as strategic sector is gradually developing as an economic sector which is capable to contribute to the economic growth of the country.

Under the Atmanirbhar Bharat initiative, Government is facilitating the development of the Indian industry to reduce the defence import as well as dependence on the foreign OEMs. Various initiatives of the GoI in recent days have given thrust on the indigenization and indigenous procurement of defence equipment. Over next 5 -10 years such reforms will equally help Defence PSUs and private industry to put a firm step towards achieving a self-sustaining Defence industry in the country, according to management of HAL.

In near future, Indian Defence market will continue to be prime revenue source for HAL due to projects like LCA Mk1A, LCH, LUH and HTT-40. The company has taken various initiatives to make systems more agile, effective, cost efficient and to be competitive. Enhancement of HAL capability is being planned to cater above projects. New production line are being installed for HTT-40 and LCA Mk1A Production, the company said.

In medium term, we are also looking forward to diversify and increase our presence in UAV, Civil MRO & allied operations, Digital Solutions and new space segments as strategic initiatives, it added.