Hindustan Aeronautics Ltd (HAL), which enjoys absolute monopoly in India's military aviation, is the butt of many jokes. American defence historian and strategist Edward Luttwak refers to it as a "fossil of a company" famous for not delivering "operationally ready Tejas Light Combat Aircraft after 30 years of trying". Notes Neelu Khatri, head of defence and security advisory services at KPMG India: "HAL is overbooked (with orders). And it is a fait accompli that giants will emerge."
Khatri is referring to the "emergence" of big private sector players in Indian aerospace. One of them is Reliance IndustriesBSE 0.15 % Ltd (RIL). "They will focus more on technology partnerships and on building up infrastructure [to start manufacturing products]," she forecasts. Dhiraj Mathur of PricewaterhouseCoopers (PwC) has no doubts either. "As a company that has a track record of working on large-scale projects, it (RIL) definitely has an advantage like other players such as the Tatas and Mahindra. Having deep pockets helps," he says.
12/05/13 Economic Times
