Stock Report

HAL, GE Aviation Sign Contract for Supply of Forgings

Posted On : 2021-02-04 16:28:28( TIMEZONE : IST )

Hindustan Aeronautics Ltd today signed a contract with GE Aviation for development and supply of ring forgings for GE Aviation military and commercial engine programs. The five-year contract valued over INR 100 crores (USD 15 M), involves supplying both steel and nickel alloy forgings for shrouds, cases, rings and seals. Mr Chandrashekhar Yavarna, Senior Director, Global Sourcing Strategy, GE Aviation handed over the contract document to Mr M S Venkatesh, Executive Director, Foundry Forge Division.

With this contract award, GE Aviation has initiated the development of a raw material supply chain in India as part of its "Make in India" and "AatmaNirbhar Bharat" strategy. The award of contract followed HAL's successful bidding in GE's Global request for quotes (RFQ).

The ring forgings will be manufactured at HAL's newly established, state-of-the-art ring rolling facility at the Company's Foundry and Forge Division in Bengaluru. The division has, after a rigorous audit process, obtained GE Aviation approvals for its quality system and special processes.

"Foundry & Forge Division of HAL, Bangalore Complex is supplying Ring forgings for Defense & Civil Aerospace requirements for the last 3 decades. Current contact from GE Aviation for their Global Aero engine requirements is a reaffirmation of HAL's capabilities in the field of Ring Forging manufacturing and is a significant step forward in country's efforts in becoming a major player in global Original Equipment Manufacturers (OEM) supply chain." Said Mr. Amitabh Bhatt, Chief Executive Officer (CEO), Bangalore Complex.

"We are pleased to enter this agreement with Hindustan Aeronautics Limited for these critical forgings. HAL's investment in developing this capability and their new facility positions them as a world-class supplier, and we look forward to continuing strong partnership and joint success with HAL," said Vince Kinman, Executive Forging Sourcing for GE Aviation.

HAL's Foundry & Forge Division in Bangalore specializes in manufacturing of seamless rolled rings in aluminum, nickel & titanium alloys and various grades of steel for civil and military aero-engines and space applications.

Shares of Hindustan Aeronautics Ltd was last trading in BSE at Rs.976.15 as compared to the previous close of Rs. 964.8. The total number of shares traded during the day was 59718 in over 4079 trades.

The stock hit an intraday high of Rs. 978.35 and intraday low of 964.05. The net turnover during the day was Rs. 58083263.

Source : Equity Bulls