What it does: Hindustan Aeronautics Limited is a state-owned company in India that designs and manufactures aircraft for the aviation and defense industries.
Best known for: being one of the biggest aerospace and defense manufacturers in India
Staff stats: more than 28,000 employees in India
Financials: INR215.22 billion in revenues as of 2020
The good bits: Trainees earn INR40,000 in basic pay per month during the training period. They also receive variable dearness allowance, housing rent allowance, and Provident Fund contributions among other benefits.
The not-so-good bits: The company requires design and management trainees to sign a five-year service agreement bond. Freshers who fail to comply would pay up to INR500,000.
Shri Walchand Hirachand founded Hindustan Aircraft Limited in 1940 before the company became Hindustan Aeronautics Limited in 1964. HAL has become one of the biggest aerospace and defense manufacturers in India where its operations include:
In 2018, HAL went public by listing on the Bombay Stock Exchange and National Stock Exchange of India. The Central Government has owned a majority stake in the company, although institutional investors have bought more shares in recent years.
HAL has secured multimillion-dollar contracts even before going public, including international agreements with the likes of Airbus and Boeing.
Freshers should anticipate a high-pressure work environment, particularly for design and management trainees. The 52-week training program can be unnerving for someone who struggles with completing tasks within a short time.
HAL expects trainees to take each training module seriously. The company will extend the training period by six months for those who fail one or two modules. If they don’t pass three or more modules, HAL will terminate their contracts.
Terminated trainees will then need to reimburse the corresponding expenses incurred by the company throughout their stay.
HAL’s biggest competitors include Beechcraft, Bell Textron, and Dassault Aviation.
HAL became embroiled in an alleged bribery scandal in 2014. The Defence Ministry ordered the Central Bureau of Investigation to look into an INR100 billion supply deal between the company and Rolls-Royce.
HAL observes a ‘community-based development approach’ for its corporate social responsibility initiatives. These include an INR737 million training center and an INR439 million wind power plant in Karnataka.
Freshers must prove to HAL that they can handle the pressure of undergoing a 52-week training program. There’s a lot at stake for those who are unable to perform well, as evidenced by a service agreement bond.
Instead of being crippled with fear, freshers should see the employment bond in a more positive light. It implies job security for the first five years of their careers—with an attractive remuneration package to boot.
The hiring process may last up to two months. Freshers with high marks (at least 55% to 65%) have a higher chance of joining HAL, especially for design and management trainees.
HAL solely relies on interviews (100 points) for selecting candidates via on-campus recruitment. Aspiring trainees need to ace an online written test (80 points) to be invited to an interview (20 points). The company divides the online test into three parts:
Aside from online applications, the company hires design and management trainees at different academic institutions:
Freshers should apply via job portals and on-campus recruitment to become exempted from paying application fees if HAL hires them. Otherwise, the company charges the following rates:
HAL refunds the application fee to unsuccessful candidates who belong to the Scheduled Castes, Scheduled Tribes, and Persons with Disability groups.
Think very carefully about the future before accepting a job offer as a design or management trainee. Successful candidates must sign a five-year service agreement bond. HAL would require them to pay up to INR500,000 if they violate the agreement.
Freshers can join HAL as graduate apprentice trainees, who are accepted based exclusively on merit. Insiders advise aspiring trainees (mostly engineering and technology graduates) to maintain at least 75% in aggregate marks to boost their chances of acceptance.
If they want to become design and management trainees, a 52-week training program awaits them. The program involves theoretical and on-the-job training at different work locations. The career progression for trainees is simple:
Design and management trainees earn a basic pay of INR40,000 per month, aside from a variable dearness allowance ranging from INR40,000 to INR140,000. Company benefits include housing rent allowance, canteen allowance, and performance-based pay.
The fixed salary bracket for Grade 1 Engineers ranges between INR30,000 and INR20,000 per month. On the other hand, a Grade 2 Engineer’s fixed monthly salary may range from INR40,000 to INR140,000.
Regular employees enjoy a more comprehensive benefits package including: