HAL

Corrects paragraph 9 in March 5 story to say each rocket, not each booster, costs about $30 million.

By Nivedita Bhattacharjee

BENGALURU, March 5 (Reuters) - The Indian industrial conglomerate Larsen & Toubro LART.NS said it is betting on aerospace as a potential growth engine, including launch vehicle and satellite manufacturing, as the country cuts reliance on imports and boosts private participation.

L&T, considered a bellwether for India's infrastructure spending because of how many industries its work touches, is the country's largest private-sector defense manufacturer by revenue; its Precision Engineering and Systems unit posted revenue of 46.10 billion rupees ($548.3 million) in the 2024 fiscal year, up 41% from the previous year.

At its factory in Coimbatore, in the southern Indian state of Tamil Nadu, L&T is assembling the country's first privately built Polar Satellite Launch Vehicle (PSLV), a mainstay of ISRO's launch programme, through a consortium with Hindustan Aeronautics Limited HIAE.NS. It is also building equipment for ISRO's other deep space exploration programs.

The company hopes to scale up its space business amid India's privatization push, which has eased foreign investment limits and allocated a larger share of procurement budgets away from state-run enterprises.

"We have decades of experience in high-tech manufacturing, critical systems, and scaling up production. The same expertise applies to aerospace," AT Ramchandani, senior vice president and head of L&T's Precision Engineering and Systems, told Reuters in an interview at the factory.

Walking through the facility, amid workers building heat shields and other rocket components, he said the global launch vehicle market was expected to hit about $160 billion over the next decade. The Indian government has set a target of reaching $44 billion for the country's commercial space sector in that time. India's space sector is valued at $13 billion, according to a February report by research firm DAM Capital.

L&T's plans intersect with India's strategy to position the country as a leading space power, with Prime Minister Modi's government pushing for the industry to become a force for further economic growth.

The country hopes liberalized regulations allowing private firms to design, build and operate launch services will attract global players, mirroring the commercial space boom seen in the United States and Europe.

The first launch of a privately built PSLV booster, delayed from early 2025, is expected to occur by mid-year, though an exact date had not yet been decided, Ramchandani said. Each rocket costs about $30 million.

"Clearly when we are getting into a business like this, it is with an eye to the global market," Ramchandani said. "There’s demand for timely and cost-effective launches, especially as satellite constellations grow. If we can provide availability, reliability, and cost advantages, India can be competitive."

(Reporting by Nivedita Bhattacharjee in Bengaluru. Editing by Gerry Doyle)

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By Shivam Patel

NEW DELHI, March 4 (Reuters) - An Indian defence committee has recommended including the private sector in military aircraft manufacturing to shore up the capabilities of the Indian Air Force, whose falling squadron strength and delayed fighter deliveries have irked its chief.

The move, if accepted, would boost India's private defence firms and reduce the burden on state-owned Hindustan Aeronautics Ltd HIAE.NS, which makes most of India's military aircraft.

The committee, headed by defence ministry's top bureaucrat, submitted its report to Defence Minister Rajnath Singh on Monday, the government said in a statement late on Monday, adding that Singh had directed that recommendations "be followed up in a time bound manner".

The Indian Air Force's fleet of mainly Soviet-origin aircraft has been operating with only 31 fighter squadrons compared with a target of 42 amid tense relations with neighbours China and Pakistan.

India's Air Chief Marshal AP Singh has said that the country should involve the private sector to speed up defence aerospace manufacturing. Speaking at an event in New Delhi last week, he said India must add 35-40 fighters per year to fill existing gaps and phase out older aircraft.

Indian officials have said that Hindustan Aeronautics could deliver up to 24 aircraft powered by a General Electric GE.N engine in the coming fiscal year, which begins in April.

The company was unable to deliver any of the 83 fighters on order in the current fiscal year, in part due to the slow arrival of engines from GE, which has been facing supply chain issues.

(Reporting by Shivam Patel in New Delhi. Editing by Gerry Doyle)

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By Aditya Kalra, Shivam Patel and Tim Hepher

NEW DELHI/PARIS, Feb 28 (Reuters) - India is in talks to purchase 10 more Airbus C-295 military transport aircraft than the 71 it had planned, as the country ramps up efforts to replace its ageing fleet with locally built planes, three people familiar with the matter told Reuters.

The discussions come as a boost for Airbus' AIR.PA partnership with Indian conglomerate Tata Group after they jointly opened an assembly line for the C-295 in the western state of Gujarat last year.

India's government in 2021 struck a $2.52 billion deal for 56 C-295 aircraft for the Air Force, and last year gave an initial nod for 15 more for its navy and coast guard. Now, talks are on to add up to 10 aircraft to the 2024 order, said the three sources, who declined to be named as the talks are private.

One source said the additional planes are for the Indian Air Force.

"The Indian Air Force has significant transport capability requirements; they need a lot of aircraft," said Laxman Behera, a defence expert at the Jawaharlal Nehru University in New Delhi.

Airbus and Tata Advanced Systems, which is running the project, declined to comment. India's defence ministry did not respond to a Reuters request for comment.

Going by the deal value of the 2021 purchase of 56 aircraft, an expanded order for 25 C-295s could be worth $1.1 billion.

India is the world's biggest arms importer but has been trying to boost domestic production and self reliance as it looks to counter neighbouring China's rapidly growing military.

The C-295 is a multi-role transport aircraft that can carry up to 70 troops or eight tonnes of cargo and can carry out missions such as airborne warning, surveillance and reconnaissance.

Airbus has said the Indian Air Force will soon become the largest C-295 operator, and that in India, all of the aircraft's structural components are being made locally.

AIR FORCE'S GROWING NEEDS

The source who said the expanded order was for the Air Force also said the Indian government is likely to place more orders for C-295s, while a separate industry source, familiar with the Ministry of Defence's thinking, said New Delhi wants up to 75 more C-295s, above the 56 ordered in 2021.

Sixteen C-295s from the 2021 order are due to come from Airbus' site in Spain while the remaining are expected to be assembled at the Airbus-Tata facility in India by 2031.

The new purchased C-295s could come solely from the Gujarat assembly line, but if New Delhi wants delivery faster, some may still need to come from Spain, the first source added.

The C-295 replaces India's legacy fleet of 56 Avro HS-748, which were first introduced in 1961 and formed the backbone of the Air Force's transport fleet.

The Indian Air Force chief this year criticised slow deliveries of fighter jets from state-run warplane maker Hindustan Aeronautics HIAE.NS and has emphasised increasing production speed and called for opening up warplane manufacturing to private firms to boost competition.

(Reporting by Aditya Kalra, Shivam Patel and Tim Hepher; Additional reporting by Aditi Shah; Editing by Gerry Doyle)

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Repeats story from February 14, no changes to text

By Nivedita Bhattacharjee

BENGALURU, Feb 14 (Reuters) - Indian conglomerate Adani Group is a finalist, alongside two government-linked groups, to take over private production of India’s Small Satellite Launch Vehicle, three sources familiar with the matter told Reuters.

The SSLV, developed by the Indian Space Research Organisation, is a low-cost vehicle capable of deploying satellites of up to 500 kg (1,100 pounds) into low-Earth orbit, or LEO - the most sought after segment of the satellite launch market.

After its first successful launch in 2023, the government moved to transfer the vehicle’s production and technology to private industry as part of a broader push to expand India’s commercial space sector.

That move has been the highest-profile piece of India's privatisation efforts, which the government hopes will help the country claim a greater share of the booming global satellite launch market, dominated by private players such as SpaceX.

“LEO is the name of the game right now, so the potential winner has the opportunity to really tap into a rapidly growing market,” said Damodaran Raman, a director at Deloitte who soecialises in space tech.

About 20 companies initially expressed interest in bidding for the SSLV, the first privatisation of its kind under Prime Minister Narendra Modi’s policy drive to open up India’s space industry.

The three finalist consortiums include Alpha Design Technologies, in which Adani Defence Systems and Technologies owns a stake; state-backed Bharat Dynamics Limited BARA.NS; and Hindustan Aeronautics Limited HIAE.NS. Reuters could not verify the exact structure of each bidding group.

The companies did not respond to Reuters requests for comment. The sources did not want to be named because details of the bids are not public.

The winning company is expected to pay India's space agency about 3 billion rupees ($30 million) for the SSLV, covering design know-how, manufacturing processes, quality-assurance training, and up to 24 months of technical support or two successful launches, according to one of the sources.

Beyond financial capability, bidders must demonstrate the ability to manufacture, sustain, and sell the SSLV.

A second source familiar with the matter said the limited availability of launch slots with major industry players such as SpaceX presents a significant opportunity for new entrants, with the possibility of positioning themselves as a go-to launch partner for South Asia.

The global satellite launch vehicle market is projected to grow from $5.6 billion in 2025 to $113 billion by 2030, with low-Earth orbit launches dominating, according to research firm Mordor Intelligence.

India accounts for only 2% of the global space economy. The Modi government aims to expand that share fivefold to $44 billion by the end of the decade.

Companies vying for the SSLV contract were required to be profitable, with the lead bidder having at least five years of manufacturing experience and an annual revenue of at least 4 billion rupees ($50 million), according to India’s space regulator.

($1 = 86.9500 Indian rupees)

($1 = 86.7540 Indian rupees)

(Reporting by Nivedita Bhattacharjee in Bengaluru. Editing by Gerry Doyle)

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By Shivam Patel and Abhijith Ganapavaram

BENGALURU, India, Feb 14 (Reuters) - India is likely to seek bids this year for 114 multi-role fighters, two sources said, marking a major step in a process to bolster the country's stock of combat aircraft that has gone on for nearly two decades.

The project is critical for the Indian Air Force, whose squadrons of mainly Russian and ex-Soviet aircraft have fallen to 31 from an approved strength of 42 at a time when rival China is expanding its air force rapidly.

On the sidelines of the Aero India aerospace exhibition in Bengaluru, many of the companies who expressed interest in 2018 - when the government last sought planemakers for the project - said they were still in the hunt.

"The Chinese are inducting modern fighters and Pakistanis are also getting some Chinese support whereas the Indian Air Force, in terms of combat squadrons, is deficient. There is no doubt about it," said Laxman Behera, a defence expert at government-funded Jawaharlal Nehru University in New Delhi.

"We'll have to wait and watch."

Potential competitors for the Multi-Role Fighter Aircraft (MRFA) contract include U.S. defence firms Lockheed Martin LMT.N and Boeing BA.N, Russia's United Aircraft Corporation (UAC), France's Dassault Aviation AM.PA, Sweden's Saab AB SAABb.ST, and Germany's Eurofighter.

Companies are preparing supply chain blueprints, scouting for local partners, and ensuring cost effectiveness of their offerings, two executives and three sources told Reuters this week at the exhibition.

Lockheed Martin is trying to sell its F-21, an India-specific variant of its widely used F-16 fighter, to New Delhi for the MRFA, which will be a 4.5 generation aircraft made in India with a local partner.

Separately on Thursday, President Donald Trump said the U.S. would eventually sell the country fifth generation F-35 stealth fighters, although India's foreign secretary said afterward that no formal process had started yet.

"We are encouraged by the recent announcement by President Trump to provide the F-35 to India. However, these are government-to-government decisions. We look forward to working closely with both governments on upcoming strategic procurements," a Lockheed Martin spokesperson said.

RUSSIAN SUPPLIES

Lockheed builds F-16 wings at the company's joint production facility with India's Tata Group in the southern city of Hyderabad and has plans to use the facility for F-21 jets.

The IAF does not have U.S. fighter jets in its active fleet, but about 50 aircraft are powered by General Electric engines, with 170 more on order.

UAC may have advanced jets on offer, including the stealthy Sukhoi Su-57, a Russian industry source said.

The Su-57 is a generation ahead of the Su-35 and the MiG-35 that were previously on offer for the MRFA and has a more powerful engine, avionics, and radar systems.

Russia has for decades been the main weapons supplier to India, the world's biggest arms importer. But New Delhi has been diversifying its imports since the war in Ukraine hobbled Moscow's ability to supply spares to India.

Russia brought the Su-57 to Aero India and offered to make the aircraft in India in "informal" conversations with Indian defence officials, saying it could by built using local production lines for Su-30s.

More than 10 years ago, Russia and India had planned to build the Su-57, then called the T-50, in India, but the effort was abandoned.

Sweden's Saab, which also intends to compete for the MRFA project with its JAS-39 Gripen E jet, has a blueprint for an Indian supply chain, said Kent-Åke Molin, head of the Gripen India campaign.

Molin said he was speaking to potential partners for the project and that Indian officials had given a "very positive" reception to the aircraft, adding that the jet was more cost-efficient than its peers.

The MRFA project is a continuation of an uncompleted acquisition of 126 jets that started in 2007 but was withdrawn in 2015 after Modi's government decided to buy 36 Rafale fighter jets from Dassault Aviation AM.PA. The Rafale is also a potential competitor in the MRFA project.

Dassault did not immediately respond to a request for comment.

(Reporting by Shivam Patel and Abhijith Ganapavaram in Bengaluru. Editing by Gerry Doyle and David Evans)

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This Feb 12 story was updated on Feb 13 to add GE Aerospace comments in paragraph 11

By Shivam Patel

BENGALURU, Feb 12 (Reuters) - India's state fighter jet maker Hindustan Aeronautics (HAL) HIAE.NS said it understood why India's air force was impatient over delays in delivering warplanes and would start rolling them out once General Electric GE.N supplied engines for them.

In a pre-scheduled press conference on Tuesday that was held a day after the head of the air force rebuked company officials, HAL Chairman D.K. Sunil said when asked about the delays: "The concern of the air chief is understandable. Of course, his squadron strengths are going down."

"We have now promised that we will have all the structures ready," Sunil said. "We are building this. Once the engines are available, this will start rolling out."

The Indian Air Force's fleet of mainly ex-Soviet aircraft has been operating with only 31 fighter squadrons compared with a target of 42, frustrating its officials given the country's tense relations with neighbours China and Pakistan.

The Air Force has ordered 83 Mk-1A light combat aircraft from HAL, an advanced variant of the operational Mk-1 "Tejas", with deliveries initially planned to start in February 2024 as part of a 364.68 billion rupees ($4.20 billion) contract. It plans to procure 97 more Mk-1As, which would take the total of the Tejas group of aircraft to 220.

But deliveries have been repeatedly delayed, due in part to the slow arrival of engines from GE, which has been facing supply chain issues.

Air Chief Marshal Amar Preet Singh was seen rebuking HAL officials at the Aero India air show in Bengaluru in a video filmed by defence news outlet National Defence that went viral on Tuesday.

"At the moment I am just not confident of HAL," Singh said, seating inside the cockpit of a trainer aircraft as HAL officials crouched by his side on a platform.

"I was promised that when I come here in February I will see 11 Mk1As ready, minus the engines," Singh said. "Not a single one is ready. Not impressed."

India's defence production secretary, Sanjeev Kumar, said at the same air show that production lines had stabilised both at HAL and GE, and that the Indian company would have the capacity to hand over 16 to 24 aircraft in the fiscal year that starts in April.

GE Aerospace referred to a company statement from earlier this month that said the company has so far delivered 65 engines for the LCA Mk-1 programme, and another 99 are on order for the LCA Mk-1A variant.

India's close defence partner Russia this week also offered to make its fifth-generation stealth fighter jet Sukhoi Su-57 in India for the Indian Air Force, by enhancing the Indian production line of the Sukhoi Su-30 aircraft, 260 of which are in India's fleet.

($1 = 86.8700 Indian rupees)

(Reporting by Shivam Patel; Writing by Krishna N. Das; Editing by Jamie Freed)

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Feb 12 (Reuters) - India's Hindustan Aeronautics Ltd (HAL) HIAE.NS posted a jump in third-quarter profit on Wednesday, driven by sustained demand for its aircraft from the country's defence ministry.

The state-owned fighter jet manufacturer's consolidated net profit rose 14% to 14.40 billion rupees ($165.74 million) for the three-month period ended December 31.

The ordering activity in the defense sector remained robust throughout the quarter, analysts said, and also mentioned that revenue growth was driven by the ongoing execution of the manufacturing order book, along with consistent increases in replacements and spares.

The spares and repair business makes up a substantial portion of HAL's total sales, according to the company's latest annual report.

Additionally, HAL secured an order worth 135 billion rupees from the Indian government for 12 Sukhoi fighter jets in December.

The Bengaluru-based company declared a dividend of 25 rupees apiece for fiscal 2025, and said its revenue from operations jumped 15% to 69.57 billion rupees year-on-year.

Last month, defence sector peer Bharat Electronics BAJE.NS reported third-quarter numbers that came in better than market expectations.

($1 = 86.8825 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips)

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By Shivam Patel and Abhijith Ganapavaram

BENGALURU, India, Feb 11 (Reuters) - Russia has offered to make its fifth-generation stealth fighter jet Sukhoi Su-57 in India for the Indian Air Force, a Russian and an Indian official said on Tuesday, as Moscow looks to boost defence ties with New Delhi.

Russia has for decades been the main weapons supplier to India, the world's biggest arms importer, and its fighter jets are part of India's military fleet. But Moscow's ability in recent years to export has been hobbled by the war in Ukraine, making New Delhi look westward.

A spokesperson for Russian state arms exporter Rosoboronexport told reporters the fighter jet could go into production as early as this year if the Indian government accepts its offer.

India's defence ministry did not immediately respond to a request for comment.

A Russian industry source and an Indian official said an informal offer had been made by Russia in talks with officials of the Indian government and state-owned planemaker Hindustan Aeronautics Ltd HIAE.NS.

The move comes as the Indian Air Force is keen to shore up its fighter squadrons, which have fallen to 31 from a target of 42, at a time when rival China is expanding its own air force.

Making the aircraft in India, with a full transfer of technology, will ensure that production and maintenance will not be affected by Western sanctions on Russia, the Rosoboronexport spokesperson told reporters on the sidelines of the Aero India aerospace exhibition in the southern city of Bengaluru. He declined to share his name.

He said the jet could be produced with enhancements to the Indian production line of the Sukhoi Su-30 aircraft, 260 of which are in the Indian Air Force's fleet.

Both the Su-57 and rival Lockheed Martin's LMT.N F-35 Lightning II, a fifth generation stealth fighter jet of the U.S., were on display at the Aero India exhibition.

Prime Minister Narendra Modi's government has been stressing the need to make India a global manufacturing hub and boost domestic defence production in order to achieve self reliance.

Despite being touted as a Russian fifth-generation fighter aircraft to rival its U.S. equivalent, the Su-57 was plagued by development delays and a crash in 2019. According to its manufacturer, serial production of the aircraft began in 2022.

Last year, Russia flew the SU-57, to Zhuhai in China for its first air show abroad, in an apparent message to the West about China-Russia cooperation.

(Reporting by Shivam Patel and Abhijith Ganapavaram in Bengaluru; Editing by Bernadette Baum)

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By Manoj Kumar

NEW DELHI, Feb 10 (Reuters) - Indian Prime Minister Narendra Modi, on a two-day U.S. visit starting Wednesday, is expected to propose tariff cuts and increased energy and defence imports during a meeting with U.S. President Donald Trump.

Modi is keen to avert a potential trade war and boost trade ties after Trump threatened reciprocal tariffs on many countries, including a 25% tariff on all steel and aluminium imports.

Here are key issues likely to be discussed during the bilateral meeting:

ENERGY IMPORTS

India plans to propose increasing energy products imports from the United States, estimated at over $11 billion in first eleven months of 2024, to alleviate trade imbalances.

As the world's fourth largest importer of liquefied natural gas (LNG), India may push its oil companies to purchase more U.S. LNG, buoyed by the Trump administration's lifting of export permit bans for new projects.

State-run GAIL India Ltd GAIL.NS is aiming to acquire a stake in a U.S. LNG plant or to secure long-term supply deals, company chairman Sandeep Gupta has said.

DEFENCE IMPORTS

India will likely negotiate the purchase and co-production of combat vehicles and finalise a fighter jet engine deal during Modi's visit.

Protracted talks have been ongoing between India and the U.S. over the co-production of General Dynamics' GD.N Stryker combat vehicles.

Officials from India's state-owned Hindustan Aeronautics Ltd (HAL) HIAE.NS are set to meet with U.S. officials and General Electric's GE.N, aerospace unit in the coming weeks to finalise the deal.

ILLEGAL MIGRATION

The countries are expected to discuss the deportation of illegal Indian immigrants by the U.S. administration, and India's concerns about their treatment.

Mukesh Agi, president of the US-India Strategic Partnership Forum (USISPF), said the industry is addressing the misuse of H-1B visas while seeking an increase in legal migration to meet the United States' professional shortage.

MARKET ACCESS AND LEVEL PLAYING FIELD

U.S. officials and industry representatives are likely to raise the issue of "market access and a level-playing field" for U.S. businesses, citing higher import tariffs on certain goods.

Elon Musk is expected to meet with Modi to discuss bringing Tesla's cars to India and expediting the allocation of satellite spectrum for his Starlink project.

INVESTMENT BY INDIAN COMPANIES

India will likely propose facilitating investments by Indian companies in the U.S., highlighting their billion-dollar investments in steel, garment, and contact manufacturing sectors.

STRENGTHENING STRATEGIC TIES

Indian officials and industry groups are optimistic Modi's visit will enhance strategic and economic ties with the United States.

New Delhi aims to attract increased investments from U.S. companies in manufacturing and services, including the insurance sector, amid escalating threats from China.

(Reporting by Manoj Kumar
Editing by Christina Fincher)

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By Manoj Kumar

NEW DELHI, Dec 19 (Reuters) - India is preparing for possible trade talks with the United States, aiming for increased investments from U.S. companies and higher exports once President-elect Donald Trump takes office.

While aiming to protect its manufacturers from potential U.S. tariff hikes on its exports, India is exploring ways to strengthen ties with Washington as Trump has threatened tariffs of 60% and other curbs on imports from China.

Here are key commercial issues between the two countries:

TRUMP POLICY ON CHINA

India seeks to leverage Trump's policy by capitalising on U.S. trade tension with China, aiming to draw away from it investments and businesses diversifying supply chains.

To align with Trump’s "America First" policy, India is ready to offer more incentives such as tax cuts and land access in states like Andhra Pradesh, Gujarat and Tamil Nadu in industries such as semiconductors, electronics, aircraft parts, and renewables.

India also seeks to integrate into U.S. global supply chains by supplying low-end and intermediate products, from chips and solar panels to machinery and pharmaceuticals.

ENERGY AND SECURITY

To tackle U.S. concerns on trade imbalances, India is open to increasing imports of energy products, such as LNG, and defence equipment while retaining its independent foreign and trade policies.

Discussions on co-producing General Electric's GE.N, fighter jet engines by state-run Hindustan Aeronautics HIAE.NS in India, have made little progress.

But India hopes the two countries' 2023 defence industrial co-operation roadmap will fast-track technology sharing and co-production initiatives.

BROADER TRADE-CUM-INVESTMENT PACT

The government and industry groups favour a broader trade and investment pact with the United States to help Indian manufacturers integrate into global supply chains while retaining policy flexibility to safeguard national interests.

BOOST TO EXPORTS

In return, India seeks to increase exports in pharmaceuticals, garments, footwear, engineering goods, chemicals, areas where it has a growing comparative advantage over China.

AIMING FOR U.S. INVESTMENTS

India is targeting greater U.S. investments, inspired by Apple Inc AAPL.O starting production of iPhones in the country. India hopes to lure more companies into manufacturing by offering incentives, streamlined regulatory approvals, and affordable land.

The United States is already India’s third-largest investor, with $65 billion in direct investments from 2000 to 2023.

SELECTIVE TARIFF CONCESSIONS

Advisers have suggested considering selective tariff cuts on items such as pork and Harley-Davidson motorcycles, which have limited domestic demand. Broader concessions could be negotiated in exchange for gains such as more visas for Indian professionals and export-boosting investments.

TWO-WAY TRADE

Two-way trade between India and the United States, India’s largest trading partner, surpassed $118 billion in 2023/24, with India posting a trade surplus of $32 billion.

Industry estimates suggest trade could grow by $50 billion within two to three years, highlighting the growth potential for stronger economic ties.

(Reporting by Manoj Kumar; Editing by Clarence Fernandez)

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** Defense aircraft maker Hindustan Aeronautics Ltd (HAL) HIAE.NS gains 1% at 4,755 rupees, highest since Sept. 6

** Indian government will buy 12 SU-30MKI aircrafts from HAL for 135 bln rupees ($1.59 billion)

** HIAE up for fifth straight session, gaining 3% so far this week

** Stock set for fourth straight week of gains

** HIAE up 67% YTD

($1 = 84.8430 Indian rupees)

(Reporting by Sethuraman NR in Bengaluru)

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Hindustan Aeronautics Ltd HIAE.NS:

Source text: [ID:]

Further company coverage: HIAE.NS

Dec 4 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• HAL - DAC APPROVAL FOR AON FOR PROCUREMENT OF ADVANCED LIGHT HELICOPTERS

• HINDUSTAN AERONAUTICS LTD - DAC APPROVES PROCUREMENT OF 6 ADVANCED LIGHT HELICOPTERS

Source text: ID:nBSE2jK9lJ

Further company coverage: HIAE.NS

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** Shares of Hindustan Aeronautics HIAE.NS rise 2.1%, Bharat Electronics BAJE.NS gain 2.3% and Mazagon Dock MAZG.NS up 4%

** Uptick after J.P. Morgan initiates BAJE and HIAE with "overweight", citing likely structural growth in the sector due to rising capex

** Says India's defence sector still in the very early stages of a long runway of growth

** Adds recent pull-back in BAJE, HIAE offers attractive entry point

** Names BAJE its preferred pick due to diversified rev and order inflow and long track record as a listed company

** "HIAE's growth potential helped by the fact that it is the main domestic maker of aircraft, engines and helicopters for Indian defence"

** Also starts MAZG with "neutral"

** Says, "While MAZG also faces structural growth opportunities, its core profit margin will normalize and it faces higher competition from other government-owned and private shipyards"

(Reporting by Bharath Rajeswaran in Bengaluru)

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** Shares of Hindustan Aeronautics HIAE.NS rise as much as 2.9% to 4,185 rupees

** The state-owned fighter jet maker reports 22.1% rise in Q2 consol net profit while rev from ops gains 6%

** More than 3.1 mln shares change hands, 2.2x of 30-day avg

** Avg rating of 11 analysts equivalent of "buy", median PT is 5,292 rupees - LSEG data

** Stock last up 1%, taking YTD gains to 46.5%, on track for fifth straight yearly gain

(Reporting by Ashish Chandra in Bengaluru)

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Nov 8 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• HAL - CONTRACT FOR AVIONICS UPGRADE OF DORNIER-228 TRANSPORT AIRCRAFT

Further company coverage: HIAE.NS

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By Nivedita Bhattacharjee

BENGALURU, Oct 14 (Reuters) - India has a plan to carve out a beachhead in the battle for commercial space, officials say: crunching space data, building small satellites and launching them cheaply into orbit rather than challenging heavyweights such as SpaceX head-on.

In particular, it is taking aim at providing cost-effective services and hardware to sectors such as communications, agriculture and commodities, where high-quality data is a precious resource.

At stake is a launch market worth $14.54 billion by 2031, and a related data services market pegged at $45 billion by 2030.

"The world has gone from satellites the size of a Boeing plane to the size of a laptop," said AK Bhatt, director general of the Indian Space Association, an industry body.

"This is a sector that India can win, instead of challenging heavy launches where Elon Musk has dominance. The country already has an historical advantage in data mining and interpretation."

Since February, India has opened its space sector to private players and created a 10 billion rupee ($119 million) venture fund to support space startups. It has also unveiled plans for crewed space exploration and a mission to Venus, but the focus is on developing commercial ventures.

In many ways it will be an uphill fight. Other countries such as Japan and China have advanced space industries, and designs on cheap launches. Spaceflight itself is difficult; the startup landscape globally is littered with failed boosters and satellite designs.

For India, "the tech is there and the ability is there... but space is tricky and very competitive, and while private companies have shown that they can create a niche for themselves, we need more proof of concept," said Namrata Goswami, a space policy expert at Arizona State University.

She added that the Indian government must be an "anchor customer" for private industry.

Most of the revenue growth is expected to come from so-called downstream data applications, said Pawan Goenka, chairman of IN-SPACe, India's space regulatory body.

Those involve crunching data from orbit to help improve crop yields on earth, build more accurate navigation systems, bolster telecommunications, tighten border security and fight climate change, Goenka said.

Indian companies such as Bellatrix Aerospace, Pixxel, Agnikul Cosmos, Dhruva Space and others are already building or have launched small satellites or satellite components.

India's space agency, ISRO, last month completed the third and final developmental flight for its Small Satellite Launch Vehicle. The design will then be handed to private companies.

"The end uses of Earth observation are vast," Goenka said. "What we are doing is address various parts of the puzzle."

Bengaluru-based SatSure, for example, has been providing real-time satellite data to the Airports Authority of India to enhance air traffic management and safety, helping planes avoid weather hazards. The project is expected to save 37.5 billion rupees ($446 million) in fuel costs for airlines annually by 2025 and result in a roughly 70% reduction in airport process planning timelines, the authority said.

Earth observation (EO) satellites - orbiting cameras and sensors - can unlock similar savings in other areas, said the company's chief executive, Prateep Basu.

"EO is solving problems that span across utilities, navigation, trading, industries, helping save millions of dollars," Basu said.

GOVERNMENT PUSH

Since the government opened up the market, companies big and small have jumped in, with legacy IT firms like Infosys INFY.NS investing in satellite imaging company GalaxEye Space Solutions, Google-backed GOOG.O Pixxel signing contracts with NASA, and Baring- and Promus-backed SatSure taking on clients such as HDFC Bank HDBK.NS and global seed company Syngenta.

Dhruva Space became one of the first to be handed a permit to operate satellite communication centres on earth - to date the dominion of ISRO.

"India is a software powerhouse and produces some of the best minds in the world in data science, machine learning, and artificial intelligence. The space downstream market is, at the end of the day, a software play," said Aravind Ravichandran, founder of France-based advisory firm Terrawatch Space.

The consultancy Euroconsult forecasts that between 2023 and 2032, about 26,104 small satellites - weighing less than 500 kilogrammes (1,100 lb) - will be put in orbit, averaging 1.5 tons of daily launch mass. The firm expects the overall small satellite industry to be worth $110.5 billion in the next decade.

Indian space companies have already seen an influx of funding - $126 million in 2023, a 7% increase from the $118 million raised in 2022 and an increase of 235% from the $37.6 million raised in 2021, according to Tracxn data.

But India has only about 2% of market share in commercial space activities, demand is still largely dependent on global clients, and well-established U.S., Russian and Chinese companies are formidable rivals.

"To truly make a dent, (Indian) solutions have to scale to the rest of south Asia and then to the rest of the world," said Pixxel founder and CEO Awais Ahmed.

($1 = 84.0560 Indian rupees)

(Reporting by Nivedita Bhattacharjee in Bengaluru; Editing by Gerry Doyle and Kim Coghill)

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Sept 13 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• RAJALAKSHMI MENON NAMED PART-TIME OFFICIAL DIRECTOR (GOVERNMENT NOMINEE DIRECTOR)

Source text for Eikon: ID:nBSE1mrlQb

Further company coverage: HIAE.NS

(Reporting by VijayDattaram Malkar)

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Sept 4 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• DAC APPROVAL FOR AON FOR PROCUREMENT OF DORNIER-228 AIRCRAFT

Source text for Eikon: ID:nNSE8NDQxm

Further company coverage: HIAE.NS

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** Shares of Hindustan Aeronautics Ltd HIAE.NS up 3.1% at 4,832.35 rupees

** India govt's cabinet committee on Monday approved the purchase of 240 aircraft engines from HIAE in a deal worth 260 billion rupees ($3.10 billion)

** Analysts tracking defence equipment maker rate it "buy" on avg, same as peers Bharat Dynamics BARA.NS and Bharat Electronics BAJE.NS - LSEG data

** HIAE's 72% YTD jump leads gains among defence peers

($1 = 83.9450 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

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Aug 30 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• SAFHAL HELICOPTER ENGINES, CO SIGNED AIRFRAMER CONTRACT

Further company coverage: HIAE.NS

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Adds quotes in paragraphs 6 and 7, details and background throughout

By Krishna N. Das

NEW DELHI, Aug 20 (Reuters) - Prime ministers of India and Malaysia sought to reset relations between the two countries on Tuesday as they agreed to boost trade, movement of workers and the use of their own currencies to settle bilateral transactions.

Malaysia is home to nearly 3 million people of Indian heritage, but relations soured around late 2019 following remarks by largely Muslim Malaysia's then-Prime Minister Mahathir Mohamad against New Delhi removing the autonomy of India's only Muslim-majority region Kashmir.

That had also hit purchases of Malaysian palm oil by India, the world's biggest buyer of edible oils like palm.

But the Malaysian approach has changed under Prime Minister Anwar Ibrahim, who took office in 2022 and previously told Reuters he was keen to have good ties with India.

The two countries started settling trade in their own rupee and ringgit currencies in April last year, and India's palm oil imports from Malaysia has also increased.

"With the support of Prime Minister Anwar Ibrahim, there has been a new momentum and energy in our partnership," Modi said, as Anwar stood by his side during his first visit to New Delhi as prime minister.

"Today we have decided that our partnership will be elevated to a 'Comprehensive Strategic Partnership'. We believe that there is still a lot of potential in economic cooperation. Bilateral trade and investment should be expanded."

Modi noted that Malaysia had invested $5 billion in India in the past year and identified semiconductors, financial technology, the defence industry and artificial intelligence as areas of possible cooperation.

Anwar said his country would reinvigorate relations with India in all fields and that their potential had not been tapped in the past few years.

Indian foreign ministry official Jaideep Mazumdar told a press conference the country would make a one-off export of 200,000 metric tons of non-basmati rice to Malaysia, making an exception to a ban on such shipments.

Mazumdar said India is also keen to sell defence equipment to Malaysia, as well as aircraft manufactured by state-run Hindustan Aeronautics Ltd HIAE.NS.

The two countries also agreed a framework for the welfare of Indian workers going to Malaysia, which sources labour from some 15 countries including India for its palm plantations and other industries.

There are already some 140,000 Indian workers in Malaysia, the highest ever, and this total could rise as India seeks job opportunities for people at home and abroad.

(Reporting by Krishna N. Das in New Delhi; Additional reporting by Tanvi Mehta and Mayank Bhardwaj; Editing by Shri Navaratnam and David Holmes)

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By Nandan Mandayam

BENGALURU, Aug 14 (Reuters) - India's Hindustan Aeronautics (HAL) HIAE.NS reported a 77% rise in its first-quarter profit on realisations from aircraft manufacturing contracts.

The state-owned fighter jet manufacturer and maintenance firm said its consolidated net profit rose to 14.37 billion rupees ($171 million) in the quarter ended June 30.

HAL is one of the several capital goods and manufacturing firms in India that have benefited from increased government capital expenditure as well as a push to localise defence manufacturing.

The company manufactures military aircraft, helicopters and engines, and also offers maintenance and repair services. Maintenance is HAL's biggest business, accounting for 72% of revenue in the year to March 2024.

Analysts had noted earlier that steady aircraft and engine maintenance demand and strong realisations from manufacturing contracts would likely aid HAL's earnings in the seasonally weak quarter.

However, while HAL's earnings growth "came in-line" according to Elara Capital's Harshit Kapadia, gross margins – which fell to 3.02%, from 4.8% a year earlier – "reported a bigger-than-expected fall".

HAL's stock, which was down 0.8% before the results, rose as much as 2.3% and then trimmed its gains. Shares last traded 0.8% lower.

Defence sector peers Bharat Electronics BAJE.NS reported a rise in quarterly profit, while Bharat Dynamics BARA.NS posted a fall.

($1 = 83.9525 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Subhranshu Sahu and Janane Venkatraman)

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July 18 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• SIGNED AN AMENDMENT TO MEMORANDUM OF UNDERSTANDING WITH AERONAUTICAL DEVELOPMENT AGENCY

• PROGRAM VALUE OF 29.70 BILLION RUPEES

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Further company coverage: HIAE.NS

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June 26 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• HINDUSTAN AERONAUTICS LTD - FINAL DIVIDEND OF 13 RUPEES PER SHARE

• HINDUSTAN AERONAUTICS LTD - APPROVED INCREASE IN AUTHORISED SHARE CAPITAL FROM 6 BILLION RUPEES TO 7 BILLION RUPEES

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** Shares of state-run defence equipment maker Hindustan Aeronautics (HAL) HIAE.NS up 5% in early trade to 5,460.10 rupees

** HIAE on Monday said the Ministry of Defence has issued a request for proposal to procure 156 light combat helicopters

** The procurement is divided between 90 helicopters for the Indian Army and 66 for the Indian Air Force - HIAE

** Stock on track for a ninth straight session of gains, if current trends hold

** Average rating of 13 analysts covering the stock is "buy"; median PT is 5,200 rupees - LSEG data

** Including session's gain, stock is up 94% YTD

(Reporting by Navamya Ganesh Acharya in Bengaluru)

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Adds quotes and context throughout

By Krishn Kaushik

NEW DELHI, June 17 (Reuters) - India and the United States on Monday committed to action to address barriers to bilateral strategic trade, technology and industrial cooperation.

The commitment was made at a meeting between the national security advisers of the two countries, Ajit Doval and Jake Sullivan, during Sullivan's two-day visit to New Delhi.

The U.S. and India are forging deeper strategic ties, with mutual concerns about an ascendant China in the Indo-Pacific region, even though India has maintained its close relationship with Russia despite its invasion of Ukraine in 2022.

Sullivan and his Indian counterpart chaired the second meeting of the India-U.S. initiative on Critical and Emerging Technology, which they launched in January 2023.

Without naming any country, a joint fact sheet of the meeting shared by the Indian government said Sullivan and Doval "resolved to prevent the leakage of sensitive and dual-use technologies to countries of concern".

They also launched a new strategic semiconductor partnership between U.S. and Indian companies for precision-guided ammunition and other national security-focused electronics platforms, it said.

They also agreed to co-invest in a lithium resource project in South America and a rare earths deposit in Africa "to diversify critical mineral supply chain" and committed to soon conclude a bilateral critical minerals pact for graphite, gallium and germanium.

Last year, during Modi's state visit to Washington, India had announced buying 31 MQ-9B drones from General Atomic, and the two countries had started discussions to jointly produce General Electric's GE.N fighter jet engines by Hindustan AeronauticsHIAE.NS in India, which is yet to be finalised.

Sullivan and Doval also discussed possible co-production of land warfare systems.

The visit is the first by a high-ranking U.S. official since Prime Minister Narendra Modi returned to office with the help of allies as his party failed to win a majority.

Modi met U.S. President Joe Biden on the sidelines of the G7 Summit in Italy last week. Sullivan met Modi and Foreign Minister Subrahmanyam Jaishankar earlier in the day.

The relationship between Washington and New Delhi has been tested after the U.S. accused Indian government agents of plotting to murder a Sikh separatist leader on U.S. soil last year, after Canada made similar allegations. India dismissed the Canadian accusations, but initiated an investigation into the U.S. allegations.

The U.S. has extradited an Indian national from the Czech Republic, whom it has indicted for the foiled assassination plot.

There have also been some concerns raised about the treatment of minorities in India.

(Reporting by Krishn Kaushik; Writing by Sakshi Dayal; Editing by Jan Harvey and Alison Williams)

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June 11 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• RBI: EXPORT-IMPORT BANK OF INDIA ENTERED INTO AN AGREEMENT WITH GOVERNMENT OF CO-OPERATIVE REPUBLIC OF GUYANA

• RBI: AGREEMENT TO MAKE LINE OF CREDIT OF USD 23.37 MN FOR PROCUREMENT OF TWO HINDUSTAN 228-201 AIRCRAFT FROM HINDUSTAN AERONAUTICS

Further company coverage: HIAE.NS

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June 10 (Reuters) - Hindustan Aeronautics Ltd HIAE.NS:

• CLARIFIES NO CONNECTION COULD BE FOUND BETWEEN CO , ITS DESIGNATED PERSONS AND RAJAT MISHRA

Further company coverage: HIAE.NS

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** Infrastructure major Larsen and Toubro (L&T) LART.NS, defence equipment maker Hindustan Aeronautics Ltd (HAL) HIAE.NS among five key beneficiaries from incoming Indian government's capex plans, says brokerage CLSA

** Diversified construction firm NCC NCCL.NS, roadway builders IRB Infrastructure Developers IRBI.NS and J Kumar Infraprojects JKIP.NS are brokerage's remaining three picks

** All 5 cos gain between 2.1%-6.2%

** Road transport ministry's plan to award 3,000 kms of highway projects in first 100 days to aid IRBI, domestically-made defence projects to benefit LART, HIAE - note

** Large orders to be placed across infra and defence domains "key to market confidence", adds CLSA

** Bets on continuing capex support benchmarks to trade higher on the day .BO

(Reporting by Hritam Mukherjee in Bengaluru)

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