Hindustan Aeronautics Limited (HAL) has signed a memorandum of understanding (MoU) with a French aerospace engine firm Safran Helicopter Engines to extend its cooperation and explore opportunities for new helicopter engines in civil and military markets.

In an interview with CNBC-TV18, R Madhavan, CMD, Hindustan Aeronautics, shed light on the joint venture and resulting opportunities.

Madhavan affirmed that MoU with Safran could yield revenue of over USD 1 billion in the next 5 years. He also explained that the company will be looking at newer products through the joint venture with Safran.

“It will have more than a billion-dollar of revenue in about five years' time from now and yearly revenues are also good; we are assessing that in peak, it will produce about 150 engines in a year starting with 50 engines in the coming year, 23-24 onwards,” he said.

On the order book at hand, Madhavan said that most of it can be executed in FY23-24. Additionally, he mentioned that he expects to see a growth in the range of 6-7 percent in the current fiscal (FY22).

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He said, “We feel that our position is quite strong and this year also, we will have a growth which is at least 6-7 percent over last year and we intend to continue with the same growth rate next year also.”

For the entire interview, watch the accompanying video

First Published:Mar 21, 2022 1:30 PM IST