26-11-2012, 12:48 PM
FINANCE MANAGEMENT, COST REDUCTION & COST CONTROL
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GENERALPROFILE
Hindustan Aeronautics Limited (HAL) based in Bangalore, India, is one of Asia’s largest
aerospace companies. Under the management of the Indian Ministry of Defence, this public
sector company is mainly involved in aerospace industry, which includes manufacturing and
assembling aircraft, navigation and related communication equipment, as well as operating
airports. HAL built the first military aircraft in South Asia and is currently involved in the
design, fabrication and assembly of aircraft, jet engines, helicopters and their components and
spares. It has several facilities throughout India including Nasik, Korwa, Kanpur, Koraput, Lucknow, and Hyderabad. The German engineer Kurt Tank designed the HF-24 Marut fighterbomber,
the first fighter aircraft made in India.
HISTORY OF THE COMPANY
Hindustan Aeronautics has a long history of collaboration with several other international and
domestic aerospace agencies such as the Airbus Industries, Boeing, Sukhoi Aviation
Corporation, Israel Aircraft Industries, RSK MiG, BAESystems, Rolls-Royce plc, Dassault
Aviation, Dornier Flugzeugwerke, Aeronautical Development Agency and Indian Space
Research Organization.
HAL was established as Hindustan Aircraft in Bangalore in 1940 by Walchand Hirachand to
produce military aircraft for the Royal Indian Air Force. The initiative was actively encouraged
by the Kingdom of Mysore, especially by the Diwan, Sir Mirza Ismail. The British Government
bought a one-third stake in the company by April 1941 as it believed this to be a strategic
imperative. Later in April 1942, it bought out the stakes of Walchand Hirachand himself and
other promoters so that it can act freely. The decision by United Kingdom was primarily
motivated to boost British military hardware supplies in Asia to counter the increasing threat
posed by Imperial Japan during Second World War. However, the Mysore Kingdom refused to
sell its stake in the company but yielded the management control over to the British Government.
Thus, within 2 years of establishment, it was nationalized.
AIRCRAFT WESTERN ORIGIN
JAGUAR INTERNATIONAL
HAL commenced production of Jaguar International - deep penetration strike and battlefield
tactical Support Aircraft in 1979 under license from British Aerospace, including the engine,
accessories and avionics. Jaguar aircraft is designed with 7 hard points (4 under wing, 2
overawing and 1 under fuselage) capable of carrying a huge load of several of weapons in
different combinations to meet the Customers’ needs.
VISION OF THE COMPANY
"To make HAL a dynamic, vibrant, value-based learning organization with human resources
exceptionally skilled, highly motivated and committed to meet the current and future challenges.
This will be driven by core values of the Company fully embedded in the culture of the
Organization".
MISSION OF THE COMPANY
Enable all those working for HAL to give their best to ensure their all-round growth as well as
that of the organization. To become a globally competitive aerospace industry while working as
an instrument for achieving self-reliance in design, manufacture and maintenance of aerospace
Defence equipment and diversifying to related areas, managing the business on commercial lines
in a climate of growing professional competence. "To become a globally competitive aerospace
industry while working as an instrument for achieving self-reliance in design
HAL ACCESSORIES DIVISION LUCKNOW
HAL Lucknow Division was established in 1973. The Division was setup with the objective of
supplying six types of systems equipment of Kiran and Marut aircrafts. But now is holds a
peculiar position in the company’s setup practically, all other divisions are dependant for supply
of accessories from Lucknow Division. A mind boggling range of about 550 different products
are being produced and assembled under one roof, using totally diverse technologies.
The Division has also built up design and development capability and indigenously developed
electrical, hydraulic and other items which are manufactures for use in aircraft as well as for
fighting vehicles.
At present division has 3207 employees out of which 2625 are workmen (1356 direct and 1269
indirect) and 582 officers. The division being a public sector organization has extended a lot of
statutory and non-statutory welfare facilities. The human relations and discipline matters are
regulated in the division through well-defined system. Service matters of workmen are regulated
through certified Standing Orders while in the case of officers are taking care of by the Conduct
Appeal and Discipline Rules. There are 7 registered Trade Unions presently functioning in the
Lucknow Division in which H.A.E.A (Hindustan Aeronautics Employees Association) is the
majority union and has been recognized by the management along with these is one officer’s
Association H.A.O.A (Hindustan Aeronautics Employees Association) to represent the officers
of HAL.