Russian Helicopters has had to go back to the drawing board on plans to raise fresh capital, following last month’s failed attempt at a $500 million share flotation. Prospective investors didn’t buy the state-backed group’s business plan, raising questions about with Russia’s other planned privatizations will prove to be viable.

The group, which brings together the famous Mil and Kamov design bureaus as well as Rostervertol, generated earnings of approximately $461 million in 2010, claiming a profit margin of 17 percent. But financial analysts indicated to AIN that prospective investors were concerned by what they perceived as a lack of transparency over its orders backlog, due to restrictions in the way Russian manufacturers are required to report contracts and provisional deals.

At a Paris show press conference yesterday, Russian Helicopters outlined plans to modernize its product portfolio through new partnerships with Western avionics groups. Perhaps these envisaged deals may constitute a stepping-stone to further investment and restructuring of the group.