Hindustan Aeronautics Limited (HAL), established on 23 December 1940, is one of the oldest and largest aerospace and defence manufacturers in the world. Currently involved in the design and manufacturing of fighter jets, helicopters, jet engines, marine gas turbine engines, avionics, software development, and spare supply, HAL has the responsibility of modernization of Indian military hardware. Engaged in India’s ambitious AMCA (Advanced Medium Combat Aircraft) and Tejas fighter jet production, HAL has now taken an ‘international flight’ in military hardware production.
HAL Goes International
Taking a giant leap forward in global defence manufacturing, Hindustan Aeronautics Limited has announced the establishment of its office in Malaysia. Informing about the updates, HAL said, “HAL signed an MoU for establishing an office in Kuala Lumpur (Malaysia) in the presence of Dr. Ajay Kumar, Secretary, Defence. The office in Malaysia will help HAL in tapping the new business opportunities for Fighter Lead-in Trainer (FLIT) LCA and other requirements of the Royal Malaysian Air Force (RMAF) like Su-30 MKM and Hawk upgrades. Mr. B. N. Reddy, High Commissioner of India in Malaysia, Mr. Sanjay Jaju, Additional Secretary (Defence Production), and others were present.”
Royal Malaysian Air Force (RMAF) like Su-30 MKM and Hawk upgrades. Mr. B. N. Reddy, High Commissioner of India in Malaysia, Mr Sanjay Jaju, Additional Secretary (Defence Production) and others were present. @drajaykumar_ias @sjaju1 @DefProdnIndia @gopalsutar
— HAL (@HALHQBLR) August 18, 2022
The premier defence public sector unit in its media press release stated that HAL had submitted a proposal to the Defence Ministry of Malaysia, in October 2021 for the supply of 18 FLIT LCAs against a global tender issued by the Royal Malaysian Air Force (RMAF).
The final winner of the tender is expected to be declared soon by Malaysian authorities. LCA Tejas stands a fair chance of selection in the bid as it meets all the parameters sought by RMAF.
“Being one of the largest producers of Russian-origin Su-30 aircraft, HAL has the capabilities to extend the required support to RMAF for Su-30 MKM fleet which is facing low serviceability issues due to the ongoing Russia-Ukraine crisis. HAL can support RMAF for upgrading their Hawk fleet as well. Other HAL platforms like HTT-40, Do-228, Advanced Light Helicopter (ALH), Light Combat Helicopter (LCH) among others, have the potential to be inducted by RMAF in the future”, the press release added.
Considering the above factors, HAL’s office in Kuala Lumpur will take up market promotion of products and services of HAL not only in Malaysia but in the entire South East Asia. The office will also contribute to increasing the serviceability of existing platforms being operated by RMAF and for neighbouring Air Forces in the region.
Efforts to establish defence production unit in Egypt
Recently published news in The Economic Times stated that India has not only offered to supply its world’s lightest supersonic fighter jet Tejas to Egypt but has also offered to set up production facilities for the manufacturing of LCA and helicopters. The offer has been made in accordance with the Egyptian Air Force requirement of about 70 light combat fighter jets focusing on local production & technology transfer.
Setting up production facilities of Tejas in Egypt is strategically very important. As the country is located at the top of the North African continent, it can cater to the region’s demand for affordable as well as state-of-the-art combat aircraft fighter jets. North African countries like Morocco, Algeria, Libya, Tunisia, and Sudan are not capable of purchasing overpriced fighter jets & helicopters from American and European companies.
Indian LCA Tejas priced at around $42 million per unit is the cheapest in this category of fighter jets. It will be very economical for these low-income countries to balance their defence budget with state-of-the-art Indian hardware.
Read More: India takes a giant step as a defence manufacturer with its Tejas deal with Egypt
India to become a net exporter of defence hardware
To make the nation Aatmanirbhar (self-reliant) in defence production, the government launched the Defence Production and Export Promotion Policy in 2020. The policy achieved a turnover of Rs. 1,75,000 crore including export of Rs. 35,000 crores in Aerospace and Defence goods by 2025.
According to reports, with the highest ever export number, India’s defence exports for 2021-22 were Rs 13,000 crores. The biggest buyer of Indian defence goods was the United States of America. Further, the export share of public sector companies increased to about 30% from earlier 10% and the private sector accounted for 70% of total exports. With the relaxation of the FDI policy, the numbers are expected to increase exponentially.
Read More: From importers to exporters, India’s game-changing journey in the defence sector
To expedite the export process, countries are recognized to focus on the production of required defence equipment. The countries on priority lists are Vietnam, Malaysia, Indonesia, the Philippines, Saudi Arabia, UAE, US, Egypt and other African countries.
As HAL is ready to set up its first overseas office in Malaysia, it is now almost confirmed that India has won the tender to supply the world’s lightest supersonic fighter jet to Malaysia. The establishment of office will help in the coordination of fulfilling the terms of the tender. This office will potentially become the regional office of HAL in south-east Asia as other countries of the region are in talks for defence cooperation with India.
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