ThePrint CutTheClutter: HAL’s large order book & low turnover, & Modi govt’s revamp plan for India’s biggest defence firm
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Nov 25, 2025 Discover the complexities of Hindustan Aeronautics Ltd (HAL) as the government seeks to modernize it with a Boston Consulting Group study. Explore HAL's critical role in India's defense and the unusual dynamics of it being both a supplier and government-owned. Delve into the push for private sector involvement in defense manufacturing and the challenges HAL faces with its large order book and low turnover. There's a bold proposal to split HAL for improved efficiency, raising the possibility of a competitive future in aviation.
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HAL Is A State Monopoly Facing A State Buyer
- HAL is a government monopoly supplying aviation platforms across services with no private rival in platform building.
- That monopoly sits opposite a monopsony buyer also owned by the government, creating a circular ownership problem.
BCG Study To Restructure HAL
- The government engaged Boston Consulting Group to study HAL for restructuring and modernisation.
- The BCG report aims to make HAL more agile and ready for competition with private firms.
Huge Order Book, Low Turnover Problem
- HAL has a massive order book but relatively low annual turnover, producing a backlog that restricts new bidding.
- This mismatch depresses its effective competitiveness and operational throughput despite high market value.