HAL Invests Heavily in Research, Aims for Technology Leader Status

Hindustan Aeronautics Limited (HAL), a cornerstone of India's defense and aerospace industry, is making a bold move to become a technology powerhouse. Chairman and Managing Director CB Ananthakrishnan recently announced a major boost in research and development (R&D) investment.

Shifting Focus​

HAL is dedicating a significant 15% of its profits directly to R&D, with plans to increase this investment. This marks a shift from its traditional role as a manufacturer towards becoming a full-fledged leader in technology development.

Why the Change?​

“The aerospace and defense industry is rapidly evolving, driven by cutting-edge technology," explains Mr. Ananthakrishnan. "HAL recognizes this trend and is proactively investing to stay at the forefront of innovation.”

HAL's R&D Goals​

• Next-Gen Technologies: HAL aims to develop the advanced technologies that will shape the future of aerospace and defense.
• Stronger Products: Innovation will allow HAL to offer more advanced and diverse products, expanding their reach in the market.
• Self-Reliance: A strong R&D focus will help reduce India's reliance on foreign defense technologies.

Benefits for India​

HAL's move isn't just about the company. This focus on research could boost the entire Indian aerospace and defense industry, encouraging other companies to follow suit and make India a leader in defense technology.

 

[Hari Sud]

Babus running the HAL are not trained to think R&D, then why this change?

 

[sanket]

Babus running the HAL are not trained to think R&D, then why this change?

15% already allocating of the profits for R&D which is going to increase .

 

[ABHIJIT APSINGIKAR]

Even before they think of implementing technological transformation, they need a through organizational transformation and a wholesale restructuring of operational management to make any R&D focused technology transformation initiatives a success.

Their atrophied setup is beyond redemption and tardiness, improper planning and adhoc management style so pervasive, that without addressing these, all attempts to expand R&D would be futile endeavors.

 

[Frank]

Even before they think of implementing technological transformation, they need a through organizational transformation and a wholesale restructuring of operational management to make any R&D focused technology transformation initiatives a success.

Their atrophied setup is beyond redemption and tardiness, improper planning and adhoc management style so pervasive, that without addressing these, all attempts to expand R&D would be futile endeavors.

I hate Hal..

But reminder

Tata Mahindra ambaji Adani spend 0 in research

They are screw. Driver Kings

 

[ABHIJIT APSINGIKAR]

I hate Hal..

But reminder

Tata Mahindra ambaji Adani spend 0 in research

They are screw. Driver Kings

IF HAL having spent over 5 decades screw driving, could not break out of it and initiate R&D with full government support, its awfully unjust to expect the private sector to suddenly invest in R&D especially when they were barred from directly entering defense production until recently. So if HAL could not grow out of screw driver job after over 6 decades, what makes u think we can expect the same from private sector which is fairly new to job of assembling itself.

Moreover, the private sector is mortified at the prospect of investing heavily on R&D without any commitment on future orders. Say a private sector enterprise invests in expanding R&D and say enters a tender competition, and PSU wins it by low balling estimate, then the investment is null and void and is a huge loss to the enterprise.

They want commitment on bulk orders and not piece meal orders. The same thing happened to L&T that delivered their K-9 howitzers 6 months ahead of schedule and then their production had to go idle when follow-on order was placed almost a year later. Basically the production line was idle for over 8 months in between, and all the while L&T was paying salaries to employees and paying off loans. The same thing plagued the Japanese defense sector compelling Komatsu to pull out of defense business itself. Just recently about 2-3 years back after Covid, Japan defense ministry has started handing out fixed price extended duration contracts for relatively large procurement order volumes. So until Indian MoD also follows the same it wont change.

 

[Anant]

I hate Hal..

But reminder

Tata Mahindra ambaji Adani spend 0 in research

They are screw. Driver Kings

Tata literally bought the rights of a small aircraft and are working on converting it to a large UAV, but sure...

Other conglomerates have also said on occasion that they are willing to enter the defence sector. You can't just expect them to invest hundreds of crores into R&D when they don't have a starting point or an assurance that the products they develop will be procured in suitable numbers. They are running companies, not charities.

 

[Jay K Sinhal]

Duplication will fritter away resources. DRDO and ADA have the same roles.

 

[Squarecut Atul]

These recent articles of HAL appear like files containing proposals being pushed around mindlessly. These articles contain jargon rather than any concrete plan of action.

 

[Sandeep]

While it’s good that they are reinvesting the 15% made from any profits they make that figure is far too low. To develop any advanced technology it costs a lot of money along with the necessary infrastructure and machinery used to develop that. They need to spend at least 25% minimum for any real progress on any advanced technology and the government has to always find that money amongst its income and exports made.

 

[Ysmir Rewari]

This is a GPT made article, AFI needs to do better. Fed up of all these boring news pieces with little to no details.