- 30 Sep 2024
- ICICI Securities
HAL’S ADVANCED LIGHT HELICOPTER CHOSEN FOR ONGC OFFSHORE MISSIONS
News: As per the media reports, Indigenous advanced light helicopter (ALH), manufactured by Hindustan Aeronautics (HAL), has been chosen to undertake offshore missions for Oil and Natural Gas Corporation (ONGC), beating several foreign competitors for the requirement to fly out personnel and equipment to oil rigs in the open seas. The civil ALH will be operated by Pawan Hans Ltd, which will initially place an order for 10, with the total requirement expected to cross 28 in the coming years. Work is currently in process to ensure all civil certifications required for the helicopters to be operated by Pawan Hans. The helicopter is expected to be ready by the middle of next year.
Views: The order will open up a new civilian market for HAL. Total contract size for 10 ALH is estimated to be Rs 1000-1200 core. HAL has already entered into the civil market with Hindustan-228 passenger aircrafts, a civil version of Dornier aircrafts. With govt focus on increasing remote regional connectivity under the regional connectivity scheme (UDAN), we believe HAL has sizable opportunity in civil passenger aircrafts segment also in the coming years.
Impact: Positive