Company Profles

8/8/2019 Company Profles

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India Defence & Security Report Q2 2010

Company Profiles

BAE-HAL Software LtdCompany Overview BAE-HAL is a joint venture (JV) between HAL, Asias largest manufacturer of aircraft, and BAE

Systems, one of the largest aerospace and defence companies worldwide. The JV was

established in 1993 with the objective of providing high-quality and cost-effective software

services and solutions for the aerospace and defence industries across the world.

The company has six different divisions: Real-Time Systems Simulation, Simulations, EAG,

DBMS, Content Creation, and Engineering Services.

The Real-Time Systems Division is BAE-HALs largest group and has carried out a number of

projects for aerospace applications over the years. These include the development of full life-

cycle software projects and independent verification and validation. This division also has

expertise in automatic test equipment.

The simulation unit provides state-of-the-art, cost-effective simulator solutions required for the

training and maintenance of aerospace and defence systems. This division was part of a

consortium that upgraded 21 out of the 39 aircraft sub-systems for the Indian Navys simulator for

the Sea Harrier Jump Jet. It has also developed Cockpit Procedure Trainers for the MiG series of

aircraft.

The Content Creation Division offers products and services in multimedia, digital documentation

and web technologies. It has developed products for HAL, Bharat Electronics, Rolls-Royce and

the Indian armed forces.

The companys other, smaller units are the Engineering Services Group, which supplies services

in computer-aided design applications; the Enterprise Applications Division, which provides

enterprise solutions for aerospace and defence applications; and the Database Management

Division, which has in the past provided database management solutions for British Airways.

Aviation and Aerospace magazine reported in February 2010 that the relationship between HAL

and BAE had deteriorated. BAE Systems may be required to pay around US$10.5mn to cover

costs incurred by HAL in retooling and redesigning equipment in order to be able to assemble the

Hawk AJTs in India.

Financial Highlights In the 2008/09 financial year BEL posted net sales and income from operations of INR48.1bn

(US$1bn). Its net profit from ordinary activit ies after tax was INR7.5bn (US$156m). Net sales in

the April-June quarter of 2009 were INR9.1bn (US$190bn), a third higher than the previous

corresponding period.

Key Statistics No. of employees: 160

Year established: 1993


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Key Personnel CEO: C Subramanian

Contact Details BAeHAL Software Ltd

HAL Estate

Airport Lane

Airport Road

Bangalore 560 017

India

Tel: +91 (80) 2522 5418, 2522 6332

Fax: +91 (80) 2522 0915

[email protected]

www.baehal.com


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Bharat Dynamics Ltd (BDL)

Company Overview Established by the Indian Ministry of Defence in 1970 to manufacture guided missiles, BDL is

currently the only Indian agency that manufactures missiles. It has two manufacturing units, both

located in Andhra Pradesh, with one at Kanchanbagh, south of Hyderabad, and the other at

Bhanur (Bhanoor) in Medak District, north of Hyderabad.

BDLs first project was the production of the Anti-Tank Guided Missile (ATGM) SS11 B1incollaboration with Frances Aerospatiale. The production of the second-generation ATGM, known

as Milan, in collaboration with Frances Euromissile, started in 1985. Meanwhile, in 1989, the

company started manufacturing Konkurs ATGM under a licence agreement from the former

Soviet Union.

BDL now has a fully fledged design and engineering division for developing and updating

products required by the Indian army. Some of the products that have been developed by BDLinclude the Flame Launcher, ATGM Simulator and the JATO Booster.

The companys main product focus is now on the manufacture and supply of missiles including

anti-tank missiles, guided missiles, and ballistic missiles. The companys two main missile models

are the aforementioned Milan and Konkurs. The development of the Agni series of ballistic

missiles has allowed the company to gain a contract to produce the Agni 1A short-range version

of the intermediate-range delivery vehicle. The announcement was made in July 2004, following a

successful test launch of the missile.

Hindi Business Line reported in February 2010 that the company will produce the Agni-III, India's

long range, nuclear-capable missile, which had passed its security and test flights.





Key Statistics No. of employees: 3,120


Contact Details Bharat Dynamics

Kanchanbagh Post

Hyderabad 826 005

India

Tel: +91 (40) 2434 0081

Fax: +91 (40) 2434 0660

http://bdl.ap.nic.in/


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Bharat Electronics Ltd (BEL)

Company Overview BEL was established in 1954 to meet the defence needs of the Indian government with its focus

on the design, development and manufacture of sophisticated, state-of-the art electronic

equipment for the use of Indian Defence Services and paramilitary organisations. Nowadays,

however, BEL is the countrys premier electronics firm, with nine manufacturing units located at

Bangalore, Madras, Hyderabad, Machilipatnam, Pune, Taloja, Panchkula, Ghaziabad and

Kotdwara. The firm has its headquarters in Bangalore. Three of BELs plants, those located in

Bangalore, Hyderabad and Ghaziabad, were included in the list of Indian entities that were

subjected to US sanctions announced after the May 1998 nuclear tests. These units have faced

passive sanctions from some European countries in the last few years.

BEL has a wide product portfolio including more than 350 products. The company is Indias sole

manufacturer of radar, sensors, sonars and the complete range of antennae for defence

surveillance for ground, air and naval use. It produces sophisticated simulators and trainers, gun-

fire control and stabilisation systems, and optical and opto-electronic passive night vision devices.

In terms of communications equipment, BEL manufactures for the Indian armed forces high-

frequency (HF), very high-frequency (VHF) and ultra high-frequency (UHF) manpacks, mobile and

static transceivers and transmitters of various capacities, radio relays, digital troposcatter systems

and secure voice and data equipment and digital switching systems. For naval communications,

BEL makes ship-borne transmitters and receivers, display and console systems and ESM and

ECM electronic warfare systems for various platforms. Among the devices it makes for the air

force are satcom systems and shelter-based tactical secure air support communication packages.

In June 2008, BEL opened a new facility for the production of large-scale land-based Electronic

Warfare (EW) systems in Hyderabad.

Approximately 65% of BELs turnover comes from indigenous designs, with the remainder coming

from foreign technology transfers. In the last year alone, BEL signed collaboration agreements

with several major manufacturers, including Oerlikon Contraves of Switzerland, Northrop

Grumman of the US, ELTA of Israel, Matra Defence Equipments & Systems of France, and

Norcontrol of Norway. BEL is a key exporter, in particular of defence communication products,

exported to Algeria, Botswana, Brazil, France, Germany, Malaysia, Mauritius, Russia, Sweden,

Switzerland and the UK.

In February 2010, The Hindu reported that an intelligence satellite equipped with sensors to pick

up conversations and detect espionage activities is being developed by the Defence Research

and Development Organisation (DRDO) and the Indian Space Research Organisation (ISRO).

BEL will manufacture the radars. BEL Director (R & D) I.V. Sarma is reported to have said that in

the next decade, the business potential for BEL is expected to grow to INR22.5mn for the

manufacturing of electronic warfare systems for the Indian armed forces.





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Key Statistics Annual sales volume: US$1bn

No. of employees: 14,180


Key Personnel Chairman and managing director: Ashwani Kumar Datt

Director (personnel): M L Shanmukh

Director (finance): M.G. Raghuveer

Director (Bangalore complex): H S Bhadoria

Contact Details Bharat Electronics Ltd

Corporate Office

Outer Ring Road

Nagavara

Bangalore 560045

India

Tel: +91 (80) 2503 9300

Fax: +91 (80) 2503 9305

www.bel-india.com


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Hindustan Aeronautics Limited (HAL)

Strengths Main aerospace contractor for the Indian Air Force (IAF).

Strong links with overseas firms.

Varied competencies and facilities, from repair to design and manufacture of helicopters

and aircraft.

Weaknesses Poor research facilities, reflected by the protracted development process of the light

combat aircraft.

The enterprise is administered by the state, restricting private involvement

Export levels are currently low.

Opportunities Development of new systems such as the advanced light helicopter and light combat

aircraft offer export possibilities.

The recent Hawk deal signed by the Indian government should result in lucrative, long-

term sub-contraction deals and technology transfers from co-production.

Established and recently announced joint ventures (JVs) and overseas deals should

increase HALs international presence.

Threats Increased competition from Chinas burgeoning aerospace sector, particularly the

development of the JF-17 Thunder in collaboration with Pakistan.

Concentration on the Indian government as a cl ient could constrain HALs international

ambitions.

Danger of becoming a metal-basher if investment is not obtained for research and

development (R&D).

Company Overview HAL was rated 58th

out of the 100 largest arms-producing companies (excluding China) in 2003,

up from 62nd

the previous year, according to figures published by the Stockholm International

Peace Research Institute (SIPRI). Arms sales increased from US$510mn to US$650mn in the

same period, comprising 80% of total sales and profits of US$129mn in 2003. In FY05, HALs

dividend was just over INR100mn.

HAL was established in October 1964 following the merger of Hindustan Aircraft and Aeronautics

India. The companys core business is the design, development, manufacture, repair and

overhaul of aircraft, helicopters, engines and their accessories. HAL also manufactures structural

components for satellites and launch vehicles. Headquartered in Bangalore, the company has 12

divisions located in six Indian states.

In September 2008, MS Nadgir was appointed as the new director for design and development.

His appointment comes at a time when HAL has been climbing up the rankings, and is now 51st

in

a list of the top 100 defence companies in the world produced by the US-based magazine

Defense News. This improvement is due in large part to modernisation programmes and


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helicopter marketing strategies. HAL is also ranked fourth in the Asia Pacific region.

Over the past 39 years, HAL has built around 3,000 aircraft, of which 95% were manufactured for

the air force. These 3,000 planes comprised 20 different models, 11 of which were of indigenous

design. Meanwhile, the Helicopter Division has produced over 600 helicopters (under French

licence), and in the 1990s it developed its own helicopter model, the ALH.

HAL and French company Snecma have signed a JV agreement. The JV company aims to

become a centre for excellence for the manufacture of key components and assembly of aero-

engines. This will provide HAL with an opportunity to become a major player in the aero-engine

industry. The company began operating in early 2006 in Bangalore.

HAL has been licensed to manufacture the Su-30MKIaircraft and its components for the IndianAir Force. To this end, HAL is investing approximately INR 32.5bn (US$717.3mn) over the next

three years in its Nasik plant in preparation for the production of the Su-30MKI. The Sukhoi Su-

30MKIII fighter has gained military certification from Russia and India. It is to be built under

licence in India at the HAL complex, with 140 platforms to be manufactured by 2017. The

agreement was valued at US$5bn. Development of a pilotless target aircraft has been completed,

and HAL is now awaiting orders for the delivery of the system.

The development of indigenous defence industrial contracts should benefit HAL in the near future.

The aircraft carrier/air defence ship programme should see HAL build four General Electric

LM2500 gas turbines under licence.

In February 2010, the company announced that their joint venture company with CAE the

Helicopter Academy to Train by Simulation of Flying (HATSOFF) was progressing on-schedule

to open mid-2010 and will provide Indias first Level-D helicopter simulator training facility.

Financial Highlights HALs sales were up 20% year-on-year (y-o-y) in 2008/09 (April-March) at INR103.7bn

(US$2.2bn). Profits before tax were INR23.4bn (US$488m), up 7.9%, while after-tax profit was

INR17.4bn (US$363bn), up 6.62%.

Financial Statistics Annual sales volume: US$2.2bn.

No. of employees: 35,000.

Year established: 1964.

Key Personnel Chairman: Ashok Nayak.

Director of finance: D Shivamurti.

Director of design and development: M S Nadgir.

Contact Details HAL Corporate Office

15/1 Cubbon Road

Bangalore 560 001


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India

Tel: +91 (80) 2286 6701, 2286 6902-08

www.hal-india.com


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Honeywell International India

Company Overview Established as a 100% Honeywell-owned subsidiary in 1995, Honeywell International India (HII)

specialises in the manufacture of industrial process controls and precision components for the

aerospace and defence industries. The companys Indian unit also manufactures computer

equipment for the environmental control of all types of buildings. HII also has two manufacturing

units: Metglass Solutions, which caters to the world market with post-cast amorphous metal

products; and, System Sensor India (SSI), the first global smoke and heat detector manufacturer

to invest in the country. Within the Indian defence sector, HII provides support to the IAF and

HAL, as well as Indias Defence Research and Development Organisations.

In May 2009, Honeywell (NYSE: HON) chairman and CEO, Dave Cote, opened a new US$50mn

research, development and engineering facility in Bangalore. It is Honeywells second research

and development (R&D) centre in the city. The new facility will accommodate 3,000 people and

features laboratory facilities, simulators, and a training centre.

Cote said that India was an integral part of Honeywells global growth strategy, as a

manufacturing location, export hub and as a centre of engineering and R&D excellence. He said

Honeywells presence in India has grown from 1,000 employees in 2002 to more than 10,000.

In February 2009, Honeywell announced that it plans to produce the military version of i ts Traffic

Collision Alerting System and other key safety and mechanical systems for the Indian Air Forces

C-130J transport planes. The Indian Air Force C-130J will also operate with other Honeywell

avionics, mechanical and lighting systems and components.

In November 2009, the company announced plants to establish a new technology center inGurgaon, India, to expand its global research capabilities in refining, petrochemical and other

technologies in order to better serve customers in the region. The US$34mn investment will

establish a 400,000 square-foot centre at an existing Honeywell-owned property. The centre will

primarily house pilot plants for developing and demonstrating refining and petrochemical process

technology developed by UOP, a Honeywell subsidiary that is part of Honeywells Specialty

Materials business group.

Key Figures Year established: 1995.

No. of employees: 10,000+.

Key Personnel India president: Anil P. Gupta.

Contact Details Honeywell International

First floor

Unitech Trade Centre

Sector 43, Block C

Sushant Lok, Phase I

Gurgaon 12200


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Haryana

India

Tel: +91 (124) 671 5000

Fax: +91 (124) 671 5014

www.honeywell.com/sites/india


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Ordnance Factories (OF)

Company Overview By far Indias largest arms manufacturer, the OF group comprises a total of 39 factories across

the country. These factories are grouped into five different divisions: ammunitions and explosives,

weapons, vehicles and equipment, armoured vehicles, and ordnance equipment. Management of

the company is attributed to the Ordnance Factory Board, which functions under the auspices of

the Indian Department of Defence Production and Supplies. OF employs nearly 150,000 workers

countrywide, with 10 factories in Maharashtra and Uttar Pradesh, six in Madhya Pradesh and

Tamil Nadu, four in West Bengal and one each in Andhra Pradesh, Orissa and Chandigarh.

OF was rated 35th

out of the 100 largest arms-producing companies (excluding China) in 2003,

according to figures published by SIPRI. Arms sales increased from US$1.18bn to US$1.21bn in

this period. Arms sales accounted for 85% of total company sales.

The prime customers of OF are the Indian armed forces. However, the company has set as animportant objective the expansion of its export volume.

In December 2009, the company was reported to be in discussions with Israeli companies for

provision of arms.

Financial Highlights HALs sales were up 20% y-o-y in 2008/09 (April-March) at INR103.7bn (US$2.2bn). Profits

before tax were INR23.4bn (US$488m), up 7.9%, while after-tax profit was INR17.4bn

(US$363bn), up 6.62%.

Key Statistics No. of employees: 130,000.

Key Personnel Chairman: Saroj Vinayek.

Contact Details Ordnance Factories Board

10A Auckland Road

Kolkata

India

www.ofbindia.gov.in


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Rolls-Royce International

Company Overview Rolls-Royce has had a presence in India for the past six decades, offering a wide range of

products in the defence and commercial aeronautical sectors as well as in the marine and energy

sectors. The UK-based aero-engine giant does not have its own manufacturing plant in India, but

it has a long-standing licence agreement with HAL under which the Indian aircraft manufacturer

builds and repairs Rolls-Royces engines. The relationship continues to flourish, with HAL

partnering Rolls-Royce on the AJTs Adour Mk871 engine. HAL is producing over 44 of the

engines at its facility in Bangalore, where it has been producing Adour Mk811 engines for the

Jaguar since 1981.

Rolls-Royce celebrated the 75th

anniversary of its partnership with the Indian Air Force in 2008, a

milestone that coincided with the induction of the latest Hawk Advanced Jet Trainers in India

powered by Rolls-Royce engines.

Rolls-Royce expects to make more investments in manufacturing, design and software

development related to aircraft engines in India.

In January 2009, the company announced a contract to provide six engines to power an

extension to one of Indias major gas pipelines in a deal with Gas Authority India Limited (GAIL)

valued at US$130mn.

Address Rolls-Royce India Ltd

Second floor

Birla Tower (West)

25 Barakhambha Road

New Delhi 110001

India

Tel: +91 (11) 2335 7118

Fax: +91 (11) 2335 7117

[email protected]

www.rolls-royce.com/india/default/htm


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