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HAL secures copter order from Peru

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HAL secures copter order from Peru
Praveen Bose & Ravi Menon / Bangalore June 24, 2008, 0:49 IST

After several false starts, aircraft maker Hindustan Aeronautics (HAL) has finally hit pay dirt for its much-publicised defence project. The Bangalore-based PSU has bagged two orders for its Advanced Light Helicopter (ALH) from Peru, sources said.

The orders for the 5.5-tonne class (dry weight 3.3 tonne) ALH, christened Dhruv, are for two heli-ambulances to be used by the country's health services.

This is the first international civilian contract bagged by the PSU.

According to sources, the craft has been priced around Rs 40 crore apiece, 10-15 per cent lower than similar machines in its class.

The interiors of the ALH ambulances to be delivered to Peru will be done up in Europe. HAL is in talks with a few firms specialising in interiors and other accessories typically required by heli-ambulances.

"The reason for interiors being done in Europe is that there are no firms in India specialising in heli-ambulance interiors," an HAL source added.

Earlier, supply and service contracts with the Myanmarese and Chilean governments fell through either because of political pressure or competitor's lobbying.

The contract with the Nepal Air Force is said to have run into rough weather when "technical problems" were detected in one of the two ALHs sold to the country in 2004.

HAL sources said that ALH had impressed the Chileans with its manoeuvering ability and user-friendly avionics.

"HAL even flew down four aircraft to Chile and put them through paces. The successful trials prompted the Chilean government to consider the possibility of buying a few choppers. Pressure from government quarters in the US , however, forced Chile to cancel the order and root for Canadian Bell Helicopter's Bell 412, despite the price advantage offered by HAL," the source added.

An undeterred HAL targeted other countries in South America buoyed by its clear price edge over Bell and Eurocopter. HAL displayed the chopper at international aero shows in Singapore, Paris, Dubai, and Farnborough (UK).

The effort is now translating into customer enquiries. HAL has over the past year received enquiries from the national air forces of 35 different countries for the ALH, coupled with requests for demonstrations, according to industry sources. More contracts are clearly within reach for a chopper which made a lacklustre debut in the autumn of 1992, and later, laid low by US sanctions in 1998.

ALH comes in different configurations "but the copter can be adapted to any role and hence should have a good market," according to Ratan Shrivastava, director of Frost & Sullivan's Aerospace & Defence practice (South Asia and West Asia).

Many of the prospective customers who evinced interest in the indigenously developed all-terrain chopper are air forces from Latin America, Africa, West Asia, South East Asia and a few Pacific Rim nations.

While HAL has gone about developing the chopper with customary self-effacement, ALH has not been short of publicity after series production started in 2002. The first lot of variants of the chopper were delivered to the three Indian defence services and the Coast Guard in March that year.

By December, the Army is set to take delivery of the weapon-fitted version of ALH. Over 75 helicopters were delivered to the Army by end-2007, while 10 more operate in the civilian space. HAL plans to produce a maximum of 23 units annually.

Heli-ambulances have attracted interest in the domestic market too, according to Wing Commander C D Upadhyaya, chief test pilot with HAL's rotary wing. Though, the cost of operating the chopper has been a deterrent to purchase plans taking off. "Every time, we are stuck with the same question – who will pay for it? But, now there appears to be some discussions on the issue with a few insurance firms."

Industry experts note that overall the helicopter is still priced a few crores at the higher side. Besides, ALH critics feel that the machine is yet to create a turbulence in the global markets by way of high conversion rate (customer enquiries translating into actual sales).

HAL secures copter order from Peru
 
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Good news indeed.

Personally, I think the ALH is the Lotus Elise of helicopters... a fun, effective, good, one cal heli-bite.
 
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Sorry to burst this love in guys, but this article states that "2" helicopters have been sold. hardly a huge breakthrough when you consider the two you sold to Nepal have had problems.
 
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Sorry to burst this love in guys, but this article states that "2" helicopters have been sold. hardly a huge breakthrough when you consider the two you sold to Nepal have had problems.

Its not the numbers that matter. What matters is that HAL beat the other competitors from Europe and US to secure the deal.

That's why a breakthrough.
 
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Its not the numbers that matter. What matters is that HAL beat the other competitors from Europe and US to secure the deal.

That's why a breakthrough.

Stealth, in this business numbers DO matter. Any problems and crashes with other sales will always play a part. A lot of excuses with things "political pressure" and "lobbying" which implies only these factors play a part in the poor sales of the aircraft.

It's being purchased by a private concern with a small budget rather than a govt.
It doesn't mention WHO the other competitors were or if they even bothered floating a good tender for such a small order.

Its easy to win if no one else is racing with you.
 
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The Chile deal would have gone to HAL had it not been Uncle Sam's arm twisting.
 
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The Chile deal would have gone to HAL had it not been Uncle Sam's arm twisting.

Maybe the American deal was too good to pass up? Isn't that the nature of big business? Maybe they only looked at the price of the Druv and then thought The U.S. is offering us a better deal.

You had inquiries from 35 airforces and sold how many? I wonder if the Nepalese purchased their helicopters after "arm twisting from the Indian govt? Even allies like Burma have said no.
 
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Ah well, lets wait and watch. Hopefully this order will get the ball rolling.
 
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Maybe the American deal was too good to pass up? Isn't that the nature of big business? Maybe they only looked at the price of the Druv and then thought The U.S. is offering us a better deal.

The explanation given was that "we (Chile) would like to standardize our fleet;" instead of the six 5.5-tonne helicopters originally planned, 4 heavier Bell 212s were purchased. HAL's bid was for 46 million dollars. It is well-known that Chile gave in to American pressure.

You had inquiries from 35 airforces and sold how many?

That is yet to be seen; defense matters (especially purchases) do take time and I'm certain you are well aware of it.

Bolivia and now Peru have opted for two Dhruvs each. Isreal's Ministry of Defense operates some civilian Dhruvs.

I wonder if the Nepalese purchased their helicopters after "arm twisting from the Indian govt?

May be, may be not.

Even allies like Burma have said no.

Some Dhruvs have been transferred to Burma (I may be wrong here) while some are yet to be given.

EU recently opposed the sale of Dhruvs to Burma and demanded the cancellation of the deal; the GoI refused to do so.
 
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Still you can dance around it as much as you guys like. The simple truth is that no one really wants the Druv.
I could argue that the IA only bought them after arm twisting from the Govt. what you are telling me is that you have sold maybe (And I dispute these figures) that you have sold maybe 5/6 Druv's. Frankly if the product was as good as claimed you would have people beating your door down for it.

You created a product for a saturated market. Where the opponent has better product, better marketing, and better support.
 
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Guys you are both racing to reply to me but the proof of the pudding is in the eating......5 or 6 aircraft does not a production create. ;-)
 
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Still you can dance around it as much as you guys like. The simple truth is that no one really wants the Druv.
I could argue that the IA only bought them after arm twisting from the Govt. what you are telling me is that you have sold maybe (And I dispute these figures) that you have sold maybe 5/6 Druv's. Frankly if the product was as good as claimed you would have people beating your door down for it.

You created a product for a saturated market. Where the opponent has better product, better marketing, and better support.

Who's claiming otherwise? We haven't sold more than 6-10 Dhruvs.

The IA/IAF wanted a feasible replacement for the Cheetah. They got a light multi-role helicopter that is cheap enough to be purchased in bulk. When the HAL designed the Dhruv, the thought of export might have never crossed their minds.

I'm not claiming that Dhruv is very very good. The Dhruv is not the best in the world; I would even state that it is not the best performer in its class in all parameters. It does however offer significant value for money and is a reliable multi-role platform. But this alone does not crack the nut; market reputation is build over time. Further, countries tend to stick to tried and tested products and firms. Dhruv is a new product from a "new" vendor; it will take time for the market to accept it.

This may be a tough over-saturated market; this does not imply that one does not try or there is absolutely no demand for a new product.
 
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Stealth, in this business numbers DO matter. Any problems and crashes with other sales will always play a part. A lot of excuses with things "political pressure" and "lobbying" which implies only these factors play a part in the poor sales of the aircraft.

It's being purchased by a private concern with a small budget rather than a govt.
It doesn't mention WHO the other competitors were or if they even bothered floating a good tender for such a small order.

Its easy to win if no one else is racing with you.

Just a correction: The order is from the country's health service (presumably government run) and not a private company.
 
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Stealth, in this business numbers DO matter. Any problems and crashes with other sales will always play a part. A lot of excuses with things "political pressure" and "lobbying" which implies only these factors play a part in the poor sales of the aircraft.

It's being purchased by a private concern with a small budget rather than a govt.
It doesn't mention WHO the other competitors were or if they even bothered floating a good tender for such a small order.

Its easy to win if no one else is racing with you.

Well when you are taking "business", hope you understand the term "entering in to an account/market". When you try to enter an account/market you don't consider the numbers. it's the entry that matters:cheers:
 
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