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HAL & Rolls-Royce JV to set up production facility in Bangalore Print E-mail
Written by Arjun   
Wednesday, 31 March 2010
Bangalore: Hindustan Aeronautics Limited (HAL) and Rolls-Royce today signed an agreement to create a manufacturing joint venture company in Bangalore, India to undertake the manufacture of compressor shroud rings for the Trent Series of Engines which are used in Civilian Aircraft by Boeing and Airbus.

Construction of a new purpose-built production facility, incorporating the latest in modern manufacturing techniques, will commence in 2010 with component production beginning in 2012.

The new company, a 50:50 joint venture between HAL and Rolls-Royce, will be jointly managed. Sources close to the development said that the JV would start production by 2011 end or 2012 beginning.

Both companies will together invest Rs. 90 crore to Rs. 100 crore in the first phase. Capex investments for the new facility will include the procurement of machines like like turn mill centers, 4 axis and 5 axis machining centres. 

Nearly 131 part numbers of of compressor shroud rings will be manufactured by the new Joint Venture.  This is a 100% Export order and the volume of business is expected to be USD 15 to 20 Million per year.

"HAL Will be using latest manufacturing technologies and processes at the new facility," he said. The deliveries are expected to start from early 2012.

Through this venture Rolls-Royce will develop new, advanced manufacturing technologies and skills in India and will also be creating highly skilled new jobs in the Indian aerospace industry.

"India is extremely important to Rolls-Royce and we are delighted to announce this new joint venture company with our partners HAL. This marks an exciting new phase of our long-standing partnership with HAL and underscores our commitment to India and the aerospace industry here. India is a country that is full of potential for Rolls-Royce and we look forward to continuing to develop our business here in the future," said Sir John Rose, Chief Executive of Rolls-Royce.

"As a result of our work together we have contributed to the development of the aerospace industry in India. This new manufacturing venture will further our common objectives, advancing high value-added manufacturing in India," he added.

HAL's partnership with Rolls-Royce is now in its 54th year. HAL became a supplier to Rolls-Royce in 2003, exporting ring forgings for use in one of the world’s most technologically advanced civil aero engines - the Trent.

"HAL and Rolls-Royce have been strategic partners since 1956, when HAL started producing the Orpheus engine, under licence. Since then the partnership has flourished on key programmes like the Hawk Advanced Jet Trainer’s Adour Mk871 engine, following on from the production of Adour Mk811 engines for the Jaguar," said HAL Chairman Ashok Nayak.

Rolls-Royce has a significant presence in India stretching back over 78 years and now has more than 1,300 engines in service in India, across the company’s four global market sectors – civil aerospace, defence aerospace, marine and energy.

HAL's provisional financial results are out.  Sales for the year 2009-10 stood at Rs. 11,415 Cr registering a growth of around 10% over the previous year.   Profit Before Tax for the year at Rs. 2617 Cr  shows a growth of 12% over previous year. The order book has swelled by over Rs 12,000 Crs during the year with new orders for domestic and export projects. An interim dividend of Rs. 300 Cr has been declared for the year 2009-10.

Last Updated ( Wednesday, 07 April 2010 )
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