Celebrating Air Force Day 2024: Growth Story of Hindustan Aeronautics

Every year on October 8, India observes Air Force Day, a significant occasion that pays homage to the dedication, bravery, and technological prowess of the Indian Air Force (IAF). In 2024, as India celebrates the 92nd anniversary of this esteemed institution, it is essential to reflect on its historical legacy, achievements, and future aspirations.

The Indian Air Force was officially established on October 8, 1932, with a modest beginning of just a few aircraft. Since then, it has evolved into one of the world’s most formidable air forces, playing a crucial role in safeguarding the nation’s sovereignty and integrity. Air Force Day commemorates not only the establishment of the IAF but also its remarkable journey through various conflicts, peacekeeping missions, and humanitarian efforts.  This Air Force Day 2024, let us celebrate India’s achievement in defence through the growth story of Hindustan Aeronautics Limited (HAL).

Growth Story of HAL

Established in 1940, Hindustan Aeronautics Limited (HAL) is one of the leading aerospace and defence manufacturers in Asia with an annual turnover of over US$3 billion. The company operates under the management of the Indian Ministry of Defence. HAL accounts for 11 research and development centres and 21 manufacturing divisions. The state-owned enterprise is primarily engaged in the design, development, and manufacture of aircraft, helicopters, and their spare parts.

In 1964, Hindustan Aeronautics Limited was established with the merger of Hindustan Aircraft Limited and Aeronautics India Limited. In 1973, HAL established a design wing for the design and development of accessories such as under-carriage and hydraulic systems, air-conditioning and pressurisation systems, fuel control/gauging systems, generator control and protection units, static inverters etc. A new MRO Division was created in Bangalore to carry out ALH Overhaul activities in 2006. In 2018, HAL became public and was listed on BSE and NSE at ₹1,169. 

Expansion in Production Capacity

• Production of the Tejas Mk1A Fighter Aircraft: HAL is increasing the number of fighter aircraft it can produce. With the construction of a second production line in Nashik, the company’s manufacturing capacity has grown to make 16 LCA Mk1A planes yearly in Bengaluru, bringing its overall production capacity to 24 jets annually.
• Assistance for ISRO: HAL has opened additional facilities to facilitate the Launch Vehicle Mark-3 (LVM3) missions of the Indian Space Research Organization (ISRO). The aerospace division of HAL in Bengaluru has recently invested in new facilities for producing propellant tanks and CNC machining, which would greatly boost the manufacturing of vital components required for ISRO’s rockets.
• Growth of Aircraft Manufacturing: HAL is turning Nashik into a significant centre for the production of aircraft. The Tejas Mk1A and other aircraft will be produced at the Nashik facility, which will help HAL expand its overall capacity and tackle orders that are more complicated and large-scale.

Recent Achievements of HAL

In September 2024, HAL signed a contract with the Ministry of Defence (MoD) for the production of 240 AL-31FP aero engines for Su-30MKI aircraft, with the deal valued at over ₹ 26,000 crore. The move is seen bolstering the HAL order backlog of ₹94,000 crore to ₹1.2 lakh crore. This will lead to strong revenue visibility of 3.8 times its trailing 12-month revenue.

Hindustan Aeronautics Limited Share Price

On October 8, 2024, HAL share price opened at ₹4,150.60 and touched the day high of ₹4,357.95. In the last 6 months, HAL delivered a return of ~21.87% and all time return of 651.14%. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.