Hampson Inds in talks with HAL to supply components

To invest $20 million in Bangalore.

Hampson Industries Plc, the UK-based $275 million manufacturer of precision engineering components for automotive and aerospace industries, is in talks with Hindustan Aeronatuics Limited (HAL) to supply aerospace components.

The company aims to manufacture and supply jet engine components, aluminium body skins and high speed aluminium engine parts for the aviation industry in Bangalore.

"Right now we have not planned what components we are going to supply to HAL which has got some good programmes for both military and commercial purposes. We will begin work on our facility to manufacture aerospace components next year in Bangalore," said Hampson Group chief executive Kim Ward.

"The Indian aerospace industry is not in its infancy. It has actually further advanced than China. It is now moving to commercial and we want to cater to the requirements of Indian aerospace industry including HAL," he told Business Standard.

He said the company would be investing $20 million in India over the next five years in setting up the facility.

"We have just completed the first round of investment worth $6 million in setting up our facility for automotive components in Bangalore," Ward said.

He said the company has initiated preliminary talks with HAL. "We have already been supplied components by HAL for our Birmingham facility in England. They know that we are coming to India. They are interested in what we have to offer them and are waiting to see us start our operations. Currently, we are in discussions with European and American customers for supply of our components," he said.

Hampson plans to manufacture and supply to HAL various components like jet engine parts and anything that goes into an airframe.

"We did work with HAL and supplied transparent canopies at one point of time before the trade embargo. We now need to rekindle the deal with them," Ward said.

"From our Bangalore facility, we will supply to China and other Asian markets. We have already set up a sales office in China. We are currently supplying from the UK to China, Japan, Europe, South and North America."

The company is targeting to achieve $15 million revenues in India by 2011. By mid next year, it hopes to break even its first round of investment.

Hampson also announced the commencement of its Indian subsidiary, Hampson Precision Automotive Pvt Ltd, recently.

The company's new manufacturing facility in Bangalore will produce high precision, close tolerance components for automotive customers, primarily for turbocharger applications.

Hampson will cater to its customers like Borg Warner Turbo Systems, Delphi Diesel Systems, Cummins Turbo Technologies, Honeywell Turbo Technologies and Tata Motors.