Bangalore, February 20, 2005 (Business Line)

Hindustan Aeronautics Ltd's (HAL) star product, the indigenous multi-role helicopter `Dhruv,' is seeking to capture the South American market countries It is hoping for positive responses from the ambassadors of eight Latin American countries who witnessed the flight of four versions of the advanced light helicopter (ALH) at HAL's Helicopter Division here.

The ALH has already proven itself in the challenging terrains and record altitudes of Chile. Of the 35-40 helicopters made so far since 2002, the company has given most of them to the armed forces and the Coast Guard, besides exporting two to Nepal in 2003.

"South America offers the best potential for HAL to market ALHs," A.K. Saxena, MD, Bangalore Complex, told presspersons after the demonstration. "Chile, for example, is a lot like our country in terms of its terrain, length and altitude. Dhruv has a good range and payload and offers value for money." Chile's decision is likely to emerge during its Defence Minister's visit to the country in April.

The ambassadors of Argentina, Brazil, Chile, Colombia, Cuba, Peru, Suriname and Uruguay and the counsellor for the embassy of Guyana arrived here on a two-day visit, mainly to HAL's helicopter and Jaguar sections.

The ALH has been brought out in army, navy, air force and civil versions and can accommodate up to 14 passengers or crew. It will be in tough competition with international majors such as Bell Helicopters and Eurocopter. HAL has flown it at the Paris, Singapore, Dubai air shows and was surveyed by many parties at the recently concluded Aero India 2005 in Bangalore.

If orders materialise, Saxena said, HAL could have spin-off businesses such as spares, ground handling, simulators, training and perhaps major servicing opportunities with volume buyers. Production would have to be suitably ramped up.

He said the company is also looking at the Asia-Pacific, West Asian and eventually European markets for Dhruv. On the domestic front, Karnataka, Rajasthan, Arunachal Pradesh, besides ONGC and BSF, are potential buyers.

Dhruv in civilian operations has been positioned as a VIP copter, heli-tourism transport for reaching remote mountainous areas, evacuation support during disasters and emergencies and as air ambulance.

It would be the only one in the 14-seater class and it also offers 15-20 per cent cost advantage over the rivals, according to Wing Commander (retd) C. D. Upadhyay, HAL's Chief Test Pilot for the Rotary Wing.

Depending on the equipment and payload it carries, a Dhruv may cost in the order of Rs 40 crore.

The helicopter market worldwide, he said, is on a growth curve and an indication of that is a forecast for China, which says it may be buying 2,000 new helicopters by 2010 and five times the amount by 2020.