Tech Mahindra bags Rs 400 cr ERP project from HAL

Enterprise technology major Tech Mahindra has inked a Rs 400 crore ($53.78 million as per current exchange rates) pact to implement enterprise resource planning (ERP) solutions for Hindustan Aeronautics (HAL).

The move will support HAL’s Project Parivartan, a business integration plan that aims to build a centralised ERP and enable the state-owned company to adopt the best practices of its global peers, the Pune-based firm said in a statement.

“Tech Mahindra will be responsible for the transformation and modernisation of the ERP system as an implementation and support partner, enabling HAL to streamline and standardise its business processes across the organisation,” the statement said.

Project Parivartan is expected to enable the defence PSU, a key manufacturer of fighters, trainers, transport aircraft, helicopters, their engines and associated systems, achieve standardisation, rationalisation and integration of business processes.

Read: Tech Mahindra, SEW to accelerate digital transformation for water, energy providers

Selected as a systems integrator, Tech Mahindra said it will implement Project Parivartan over a period of nine years, ensuring smooth transition to a centralised version of ERP. It will transform the distributed application to a centralised application for all the HAL’s 22 divisions, using business transformation engineering processes such as supplier relationship management (SRM) and customer relationship management (CRM).

“This project will transform HAL’s ERP system, serving the armed forces in an efficient and effective manner,” Sujit Baksi, president corporate affairs and business head emerging markets at Tech Mahindra, said.

Read: Tech Mahindra to acquire 6% stake in Texas based VitalTech

The collaboration aligns with Tech Mahindra’s TechMNxt charter, which looks to leverage new generation technologies to enable digital transformation and build technology solutions, the statement said.