HAL sets up JV for aero engine designs

India’s state-run defence aircraft maker Hindustan Aeronautics Ltd (HAL) has set up a new 50:50 joint venture (JV) with Hyderabad-based Infotech Enterprises Ltd (IEL), which will focus on offering design and validation services for aero engines.
Infotech HAL Ltd, the new JV will have an initial equity of Rs28 crore and will have delivery centres in Bangalore and Hyderabad.
The JV company expects global aircraft engine makers such as Rolls Royce and CFM International, jointly owned by General Electric Co. of the US and Snecma of France, to outsource work on improving design and thrust of aircraft engines, and also conversion of aircraft engines to marine and industrial gas turbines.
HAL says the JV is an attempt to tap a larger share of offset contracts from foreign aircraft and engine makers.
Rajeev Lal, president (strategic and new business initiatives) at IEL, says that the JV will have revenues of around $70 million and would employ 2,000 people by 2012.
However, he clarified that IEL will not move work from its existing clients to the new entity. IEL’s biggest client in the aerospace segment is United Technologies Ltd, a US firm that owns aircraft engine maker Pratt & Whitney and owns a 15% stake in the company.
14/09/07 K.Raghu/Livemint

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Categories: Foreign Sep 2007, General Aviation Sep 2007, New Sep 2007