Defense Business and Industry

MoD partners with BCG to restructure HAL by March 2026 amid order surge.

The Ministry of Defence has engaged the Boston Consulting Group to implement a major restructuring of Hindustan Aeronautics Limited (HAL) by March 2026, driven by an unprecedented order backlog of ₹2.52 lakh crore that has strained its production capabilities. The overhaul, the most significant since HAL’s inception in 1964, aims to transition from a traditional license-production model to a more competitive aerospace lead integrator, focusing on product-specific verticals and strategic outsourcing. This restructuring is critical for HAL to expedite delivery timelines and remain competitive, particularly as it faces challenges with the Advanced Medium Combat Aircraft (AMCA) program amidst rising private sector competition. Ultimately, this transformation is essential for HAL to maintain its status as the backbone of Indian military aviation.

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