HAL Receives Major Boost with New Order for 156 Light Combat Helicopters
Tuesday, 18 June 2024, 11:49 IST
Hindustan Aeronautics Ltd (HAL) has received a significant fillip towards bolstering India's defence manufacturing capabilities under the 'Make in India' initiative. The Ministry of Defence has issued a Request for Proposal (RFP) to HAL for the procurement of 156 Light Combat Helicopters (LCH), a move aimed at enhancing self-reliance in defence production.
The announcement saw HAL's stock surge by more than 4.3% to Rs 5,427 during morning trade, following a 4.62% increase the previous day.
In a regulatory filing, HAL confirmed, "A Request for Proposal (RFP) has been issued by the Ministry of Defence for the procurement of 156 Light Combat Helicopters (90 for the Indian Army and 66 for the Indian Air Force (IAF)". The tender is expected to have a substantial worth ranging from Rs 45,000 to Rs 50,000 crore, with deliveries earmarked for both the Indian Army and the IAF.
HAL's consolidated revenue soared by 52.19% to Rs 4,308.68 crore in Q4 FY24 compared to Rs 2,831.19 crore in Q4 FY23, underscoring robust operational performance amidst increasing demand.
Defence Minister Rajnath Singh emphasized the strategic significance of this procurement in advancing India's defence capabilities and achieving self-reliance in manufacturing. "Under the leadership of Prime Minister Narendra Modi, our aim will be to further strengthen the security apparatus of the country, with a focus on achieving self-reliance in defence manufacturing", Minister Singh stated.
The procurement of 156 light combat helicopters aligns with India's broader strategy to enhance its defence production capabilities, a cornerstone of the 'Aatmanirbhar Bharat' initiative. This initiative aims to reduce dependence on imports and promote indigenous manufacturing in critical sectors.
Bharat Electronics Limited (BEL), another key player in India's defence sector, boasts an impressive order book of Rs 75,934 crore, reflecting the growing demand for indigenous defence equipment. HAL, prior to securing the new helicopter order, had an order book of Rs 38,561 crore, poised for expansion with upcoming collaborations, including the agreement with the US for advanced GE engines manufacturing.
Larsen & Toubro, renowned for its contributions to defence manufacturing, maintains a robust order book valued at Rs 94,000 crore, highlighting sustained growth in the sector.
The government's strategic focus on increasing defence exports is pivotal in positioning India as a significant player in the global defence market. This initiative is expected to bolster India's economic growth while enhancing its security capabilities through advanced indigenous technologies.
The new order for 156 light combat helicopters marks a pivotal moment for HAL and underscores India's commitment to achieving self-sufficiency in defence manufacturing. As HAL prepares to execute this prestigious contract, it sets a promising trajectory for the domestic defence industry, driving innovation, job creation, and economic prosperity in alignment with national strategic goals.
The announcement saw HAL's stock surge by more than 4.3% to Rs 5,427 during morning trade, following a 4.62% increase the previous day.
In a regulatory filing, HAL confirmed, "A Request for Proposal (RFP) has been issued by the Ministry of Defence for the procurement of 156 Light Combat Helicopters (90 for the Indian Army and 66 for the Indian Air Force (IAF)". The tender is expected to have a substantial worth ranging from Rs 45,000 to Rs 50,000 crore, with deliveries earmarked for both the Indian Army and the IAF.
HAL's consolidated revenue soared by 52.19% to Rs 4,308.68 crore in Q4 FY24 compared to Rs 2,831.19 crore in Q4 FY23, underscoring robust operational performance amidst increasing demand.
Defence Minister Rajnath Singh emphasized the strategic significance of this procurement in advancing India's defence capabilities and achieving self-reliance in manufacturing. "Under the leadership of Prime Minister Narendra Modi, our aim will be to further strengthen the security apparatus of the country, with a focus on achieving self-reliance in defence manufacturing", Minister Singh stated.
The procurement of 156 light combat helicopters aligns with India's broader strategy to enhance its defence production capabilities, a cornerstone of the 'Aatmanirbhar Bharat' initiative. This initiative aims to reduce dependence on imports and promote indigenous manufacturing in critical sectors.
Bharat Electronics Limited (BEL), another key player in India's defence sector, boasts an impressive order book of Rs 75,934 crore, reflecting the growing demand for indigenous defence equipment. HAL, prior to securing the new helicopter order, had an order book of Rs 38,561 crore, poised for expansion with upcoming collaborations, including the agreement with the US for advanced GE engines manufacturing.
Larsen & Toubro, renowned for its contributions to defence manufacturing, maintains a robust order book valued at Rs 94,000 crore, highlighting sustained growth in the sector.
The government's strategic focus on increasing defence exports is pivotal in positioning India as a significant player in the global defence market. This initiative is expected to bolster India's economic growth while enhancing its security capabilities through advanced indigenous technologies.
The new order for 156 light combat helicopters marks a pivotal moment for HAL and underscores India's commitment to achieving self-sufficiency in defence manufacturing. As HAL prepares to execute this prestigious contract, it sets a promising trajectory for the domestic defence industry, driving innovation, job creation, and economic prosperity in alignment with national strategic goals.
