Infotech - HAL JV to offer engineering services to aerospace sector
03 May 2007
Mumbai: Indian aerospace company Hindustan Aeronautics Limited (HAL) and Infotech Enterprises Limited (IEL) have formed a engineering design services joint venture company for the aerospace sector.
The JV, an independent business entity, will mainly focus on aero-engines, technical publications and anticipated work from various OEMs under the offset programs. HAL and Infotech Enterprises would be 50:50 partners in this venture.
Calling the JV a first of its kind in India, HAL chairman Ashok K Baweja said a number of future opportunities in design services will be diverted to this JV. "With offset programme related work expected to flow into India from 2009, this JV will be in a strong position to pitch for and win a large portion of engineering services work. The JV will work on the lines of comparable services companies, with high responsiveness to customer''s design requirements," Baweja said.
Under the agreement, Infotech Enterprises and HAL will continue to serve their strategic customers within their respective companies. Infotech''s relationship with UTC will not form part of this JV and HAL''s strategically sensitive military projects will also not form part of this JV. The partner companies would also transfer some of their personnel to the JV.
BVR Mohan Reddy, chairman and managing director, Infotech Enterprises Limited, said that Infotech and HAL have, over the years, built significant strengths in the aerospace sector. "This JV will open a plethora of opportunities to provide comprehensive engineering services to customers in the aerospace sector. Increasingly customers across the globe are looking for comprehensive solutions from a single vendor. The JV will be in a position to pitch for complete system-level solutions," Reddy said.