ndigenous aircraft manufacturer Hindustan Aeronautics Ltd (HAL) is confident of being in the thick of action, while the Vajpayee government is about to pick an advanced jet trainer and a multi-role combat aircraft for the Indian Air Force, C.G. Krishnadas Nair, Chairman of Bangalore-based HAL, is positive that his company will manufacture these aircraft under licence, apart from getting orders for its intermediate jet trainer. A scientist of international repute, Nair became chairman of the 32,000-strong company in 1997, nearly three decades after he joined it.

Having posted record profits of Rs.250 crore on a turnover of Rs.2,500 crore in the last financial year, HAL has set an ambitious target of a fivefold increase in turnover in the next three years. Nair is confident that the target is within reachy with the "right management and research mix". Excerpts from an interview :

Isn't your target of a fivefold increase in turnover too ambitious, considering that your main customer, the Indian Air Force, is shopping for trainers and combat jets abroad?
ven these aircraft will be produced by HAL under licence in India. So even if the source of the aircraft is foreign, it will be indigenous production. But we are not looking at licensed production only. Our design team is now anticipating the requirements of the IAF and other customers. Earlier, desighn work began when the IAF asked for a certain type of aircraft or helicopter. Now we anticipate that the IAF will require intermediate jet trainers in four or five years. Our designers are at work and we will be able to deliver any time from 2003.

What are the other products in the pipeline?
e have worked out designs for the civilian and air ambulance versions of the Advanced Light Helicopter. Their prototypes will be displayed at the Bangalore Air Show in February 2001. We are developing a pilotless helicopter which can be mounted on a truck or even a jeep, and on a small ship. It can fly a distance of 3000 metres at a height of 200 to 300 metres, and will carry camaras and sensory equipment which will help in fighting forest fires, curbing coastal smuggling and managing traffic in big cities. The prototype will be ready in 12 to 18 months.

Our turnover will also get a push once the light Combat Aircraft is ready for production in the next two to three years. Financially, we have adopted several innovative methods so that a rise in turnover does not result in ballooning manpower. In fact, our turnover-to-asset ratio is comparable to those of Boeing and Airbus.

What about licensed production of Sukhoi aircraft?
rice negotiations are going on with Russian suppliers. Production facilities are being prepared and I expect the order to come soon.

How you identified other customers other than the IAF?
e have an impressive export performance. We are making air-craft door assemblies for Airbus and are planning licensed production of the ATR civilian aircraft. We are also working out a project where old passenger aircraft manufactured by Airbus can be modified as cargo planes and thereby gain a fresh lease of life. We have the design and production capacity to make 50- and 100-seater aircraft with foreign collaborators. We would like to progress from the existing buyer-seller relationship to viable partnerships.

How has information technology affected HAL? With its pool of technical experts does HAL plan to diversify into software production and other IT areas?
eing a public sector unit involved in hi-tech areas from the start, HAL had no difficulty in making use of IT. In fact, our substantial achievements have been in the field of avionics, where aircraft are equipped with the latest technology. We have upgraded several batches of MiGs so that they get more flying years. Our approach is to stay focused on our core competence, that is making and maintaining aircraft and their systems. But IT has helped us keep a trim workforce. Employee morale is high. I have been emphasising that employees should have a sense of ethics and strive for customer satisfaction.

Sachidananda Murthy