HAL plans to get listed; to restructure board by April 1

As part of the government’s disinvestment programme, state-run Hindustan Aeronautics Ltd (HAL) plans to get listed as one of the Maharatna companies, for which it will restructure its board by April 1.

Besides, the company is looking to enhance its focus on aeronautical technology segment, rather than being only a manufacturing firm, HAL’s outgoing Chairman R K Tyagi said today.

“In last almost three years, we have tried to convert HALfrom a manufacturing company into a technology company… we have made efforts… For the preparedness for tomorrow,” Tyagi told reporters here as he prepares to demit office on January 31.

“HAL board in the last two years has given us approval for more than Rs 7,000 crore of investment where an aggressive modernisation is taking place,” said Tyagi who joined HAL as its Chairman in March 2012.

“We have prepared the company externally and internally … The company is planning for the future, reinvesting for the future, and I’m sure the valuation of the company is going to be very relevant,” he added.

Tyagi said “our dream is to see the company as a Maharatna company which have more than 5,000 patents, a company which will be fully responsive to any of the leads of the defence sector and also in the exports.”

Responding to a question on disinvestment Ashok Tandon, Company Secretary & Executive Director of HAL, said: “Disinvestment process is in progress, there were couple of issues… One was the restructuring of the board for which we have got approval from the competent authority in the government, it will be in place by April 1, 2015, and the other was sharing of confidential information with the book running lead manager which we have to sort out….”

In reply to a question on restructuring of the board, he said, “Now we have nine whole time directors, six independent and two government directors; the revised structure provides for five whole time directors including CMD, two government nominee directors and seven independent directors.”

To a question on exports, Tyagi said “if you look at the export market 60 per cent of the formal exports of the Defence PSUs is accounted by HAL; if you have to export products in the international market you must have certification….”

“Last two years we have started this exercise, those certifications are now in advanced stage and hopefully by the end of this year we will have both these certifications and then we will be able to establish good export market to our products.”

In addition to this, he said a presentation had been made to Minister for External Affairs and “we have put forward that our neighbouring countries will be a very good markets to start with, as far as our products are concerned.” He noted the handing over of Dhruv Helicopter to Nepal last November and contract from Mauritius for Dornier Aircraft.