India bags $20 mn helicopter contract from Turkey

[Contrarian]

India bags $20 mn helicopter contract
Manu Pubby
Posted online: Sunday, August 10, 2008 at 0033 hr

New Delhi, August 9: After getting a foothold in the South American market, India has bid successfully to get its second international contract for three Advanced Light Helicopters (ALH) for an estimated $ 20 million from Turkey amidst stiff competition from global players.

The contract, finalised by Hindustan Aeronautics Limited (HAL) on Saturday, comes weeks after India made its debut in the international helicopter market by winning a $ 50 million order for seven indigenously built ALH for the Ecuadorian Air Force.

HAL Chairman Ashok Baweja confirmed that an Indian delegation in Turkey finalised the deal and the initial order of three helicopters is expected to go up further. The Indian Aviation giant will start delivering the three machines within six months.

“It was a very difficult country to sell to and we have made a breakthrough. This (the three helicopters) is the first lot and we are hoping to sell more. Turkey is planning to buy more helicopters in several phases,” Baweja told The Indian Express.

While he didn’t disclose the value of the deal, it is expected to be over the $ 20 million mark. Sources said Turkey is planning to buy around 17 ALH helicopters over the next few years and the total value of the deal could be close to $150 million.

What makes the success even more special for HAL is that its helicopter won the bid in the presence of American giant Bell that was also in the fray. Turkey is also known to have traditional preference for US made defence products.

After suffering a series of setbacks — it lost the race to supply 12 utility helicopters to the Chilean Air Force in January and the contract was bagged by American Bell 412 helicopter; and then failed to get a contract from Malaysia — the ALH seems to have made a mark in the international market.
It had won the Ecuador contract amidst competition from Elbit (Israel), Eurocopter and Kazan (Russia), and with Turkey in the bag, will look forward to contracts in the Latin American market where it is the frontrunner in several trials.The USP of the helicopter is its price that is significantly lower than its competitors.

IndianExpress.com :: India bags $20 mn helicopter contract
I thought it deserved a new thread..!

 

[GHATAK]

Wow, good news.

Indian defence industry is looking very positive. Now they need a good marketing team to sell their products.

 

[Contrarian]

Its not JUST the marketing team thats important. Though i'v got to say they are doing one thing right. Its always hard for a new player, so they'r offering decidedly lower costs cutting their own margins even further so thats its quite cheaper compared to the rest, and they would also be fulfilling or giving more of the technology compared to other companies.

 

[nitesh]

Its not JUST the marketing team thats important. Though i'v got to say they are doing one thing right. Its always hard for a new player, so they'r offering decidedly lower costs cutting their own margins even further so thats its quite cheaper compared to the rest, and they would also be fulfilling or giving more of the technology compared to other companies.

Sir, our manufacturing cost is much lower then the other competitors that could also be a factor.

 

[Marshal]

Sir, our manufacturing cost is much lower then the other competitors that could also be a factor.

Yes you are right, It could possibly be one of the factor. no country will buy it if it is not competetive in terms of performance and technology as compere to other helicopters.

 

[JK!]

What other competitors was it up against?

 

[Contrarian]

Sir, our manufacturing cost is much lower then the other competitors that could also be a factor.

Yes, that is true, even so, they reduce their prices to get the extra-edge. Reduce prices, offer more technology, you get your contract.

Oh and i am in no way suggesting that HAL chopper is inferior to the others, that it won just cuz of those reasons. I am saying that to break into a market you have to have a comparable product AND offer the above things.

 

[nitesh]

Yes, that is true, even so, they reduce their prices to get the extra-edge. Reduce prices, offer more technology, you get your contract.

Oh and i am in no way suggesting that HAL chopper is inferior to the others, that it won just cuz of those reasons. I am saying that to break into a market you have to have a comparable product AND offer the above things.

Yes sir, market gaining strategy. Even I don't agree some country will buy choppers for only lower cost.

 

[Keysersoze]

Can we limit the number of threads on this subject please. There is already one open

 

[Vinod2070]

I for one, won't like any Indian exports to be used in conflicts anywhere, especially against civilians.

I would rather forgo some export dollars from military exports than see them used to suppress civilians by some tinpot dictator.

Not that this is directly relevant to this order, just a general comment for military exports.

 

[nitesh]

I for one, won't like any Indian exports to be used in conflicts anywhere, especially against civilians.

I would rather forgo some export dollars from military exports than see them used to suppress civilians by some tinpot dictator.

Not that this is directly relevant to this order, just a general comment for military exports.

vinod sahab, this statement is subject to interpretation by individual nations.

 

[Vinod2070]

Yes sir, Agreed. As I said, it may not be valid to the Turkish order. I don't think they will be used against Kurds.

 

[nitesh]

Yes sir, Agreed. As I said, it may not be valid to the Turkish order. I don't think they will be used against Kurds.

I seriously hope your words comes true.

 

[BATMAN]

I for one, won't like any Indian exports to be used in conflicts anywhere, especially against civilians.

I would rather forgo some export dollars from military exports than see them used to suppress civilians by some tinpot dictator.

Not that this is directly relevant to this order, just a general comment for military exports.

Dude, who is supplying arms to whole middleast and north Africa?
All those countries are ruled by dictatators!
What is your opinion about Mayanmar, where india is supporting Junta?
How about Afghan dictator! where india has sent thousands of troops to make sure all demanding democracy end up dead!
More will follow and but than you will not be there to face.

 

[nitesh]

Dude, who is supplying arms to whole middleast and north Africa?
All those countries are ruled by dictatators!
What is your opinion about Mayanmar, where india is supporting Junta?
How about Afghan dictator! where india has sent thousands of troops to make sure all demanding democracy end up dead!
More will follow and but than you will not be there to face.

Sir ji, how Afghanistan has dictator? Turky ruled by dictator?