SP's ShowNews (SP's): How do you look at the current international market for defence products, and what strategies is BEL employing to strengthen its global presence?
Suresh Kumar K.V. (Suresh): The Ministry of Defence has set an ambitious target
of ₹50,000 crore exports by 2028-29. Bharat Electronics Ltd (BEL) is, therefore, fast
expanding its global presence by making all-out efforts to tap new export markets
across the globe. In the last few years, we have made substantial progress, both
in terms of export orders acquisition and dispatches. We have identified multiple
products and systems for targeted marketing in focussed export markets. In a bid
to develop new markets in the Indian Ocean Region and friendly foreign countries
(FFCs), we have also operationalised new overseas marketing offices.
All these efforts have paid rich dividends. Our Exports business saw a robust
uptick in FY 2023-24 with sales growing by 92 per cent to a record $92.98 million.
BEL's products continued to find increased acceptance in countries such
as France, USA, Spain, Israel, Germany, Armenia, Sri Lanka, Mauritius, UK, etc,
a clear indication of the company's growing capabilities. BEL also has a healthy
Export order book of $387 million. BEL is enhancing its geostrategic reach and
strategically opening overseas marketing offices in the Indian Ocean Region,
South East Asia, Middle East Region and Americas.
SP's: Can you elaborate on your diversification plans?
Suresh: Defence has traditionally been contributing to around 80 per cent of the
Company's annual sales revenue. BEL, however, has been continuously exploring
opportunities in allied Defence and Non-Defence areas. The Company aims
to increase its non-defence share in the overall business in the coming years.
The total opportunity in the non-defence business segment being pursued by
BEL in the next 10-15 years is more than ₹2 Lakh crores. Some of the areas BEL
is focussing as part of diversification efforts include solutions for Civil Aviation,
Unmanned systems, Railway & Metro systems, Network & Cyber Security, Smart
City solutions, Space Electronics, Arms & Ammunition and Seekers, Medical Electronics
and Artificial Intelligence.
SP's: Tell us about your expansion plans
Suresh: From time to time, depending upon the growth needs and opportunities,
BEL has been taking major initiatives to modernise and expand its infrastructure.
Some of the new infrastructure initiatives taken up recently include setting
up of a Defence System Integration Complex for Missiles and Weapon Systems at
Palasamudram, Andhra Pradesh; state-of-the-art manufacturing facility for Electro
Optics and IIR Seekers at Nimmaluru; Fuze manufacturing facility at Nagpur;
manufacturing facility for Land-based EW systems at Ibrahimpatnam, Telangana;
modernisation of storage magazine and hot integration facility for arms & ammunition
at Vellore; and integration facility for QRSAM at Agra.
SP's: Please tell us about your company's financial performance, turnover,
order book position, etc.
Suresh: BEL has always been a profit-making PSU despite various challenges
including stiff competition. FY 2023-24 saw the company achieve a record turnover
of ₹19,819.93 crore as against ₹17,333.37 crore in FY 2022-23, thereby registering a
growth of 14.35 per cent. The growth was driven by strong performances across all
segments. Defence contributed to 81 per cent of revenue in FY 2023-24 with the
balance 19 per cent coming from the non-defence segment. Profit after Tax grew
by 33.7 per cent to ₹4,020 crore in FY 2023-24 as against ₹3,007 crore in FY 2022-23.
BEL also continued the momentum in order acquisition by booking highest
ever annual order inflow of ₹35,046 crore during FY 2023-24. The company's
order book position as on January 1, 2025, stands at around ₹71,000 crore, giving
it stable revenue visibility.
