Hindustan Aeronautics Will Soon Be ‘Limited’; To Cut Workforce To 25,000, To Up Efficiency And Boost Exports

Hindustan Aeronautics Limited Chief Managing Director R Madhavan has reportedly said that there will be less workload after 2021, and would be solved by "re-arranging its priorities. However, the company's Nashik factory would not be shut down, reports Business Standard.

HAL is improving its efficiency, and the company is running with 29,000 people, Madhavan said.

"HAL plans to bring the workforce down to 25,000 people. After that, we can outsource work. We, however, are not removing people. These are cases of attrition," he added.

HAL would focus on consistency of business and developing vendors to avoid producing everything in-house.

"We will have a shorter workload in our Nashik factory after 2021, but we are re-arranging our priorities there. However the unit is not going to shut down," the CMD was quoted by BS as saying.

The company's vision, he said is to take forward Light Combat Aircraft production and be leaders in helicopters.

HAL is looking to take up exports, unlike previous years, since it could not manage to handle domestic and export business, Madhavan added. Through outsourcing, the company expects to boost its export business.

The company is reported to have set an export target of Rs 425 crore this financial year. Madhavan said that HAL had reported Rs 18,200 crore sales last year.

HAL is looking at new orders of 83 Light Combat Aircraft and Light Combat Helicopter. The company also has orders for SU30 engines, which adds to the company's sales of around Rs 7,000 crore.