Vayu: How is your order book position? Tell us about the key orders executed during FY 2020-21 and major orders for this financial year from Defence and Non- Defence space?
BEL: BEL’s overall order book stands at Rs.57,636 Crores as on 31 January 2022. The major projects executed in FY 2020-21 were LRSAM, Air Defence Weapon System, CDR TI for BMP & T72, Land-based EW System Upgrade, AFNET, Ventilators, Homeland Security, Smart City projects, Coastal Surveillance System, K-FON, SDR (NC), EOIR, CCTV, Avionics for Light Combat Aircraft, Electronic Fuzes, NAISS and Low Level Transportable Radar. BEL has acquired orders worth about Rs. 14,000 Crores in FY 2021-22. Major Orders received include AFNET Performance & Security Enhancement and SATCOM Network, Ventilators (including service), Naval Fire Control System, Software Defined Radio, Advance Torpedo Defence Systems, Digital Mobile Radio Relay, etc. Some of the major projects planned for execution during 2021-22 are Long Range Surface to Air Missile System (LRSAM), Coastal Surveillance System (CSS)-Phase II, Kerala Fibre Optic Network (K-FON), Weapon Locating Radar (WLR), Integrated Perimeter Security System (IPSS), EW Upgrade System, Naval Gun Fire Control System, Electronic Voting Machines (EVM), etc.
Air Defence Weapon System
Vayu: Please tell us about BEL’s exports. What are the major products and who are the customers?
BEL: BEL achieved an export sale of 51.93 Million USD during FY 2020-21. Some of the countries, where BEL’s products were exported were USA, France, Israel, Germany, Switzerland, Sweden, China, Republic of Armenia, Maldives, Indonesia, Sri Lanka, Turkey, Bhutan and few specific SEZs. The major products/ systems exported during the year included Coastal Surveillance System, Data Link II, EOS CoMPASS, IFF-I Mk-XI, Radar Finger Printing System, Communication equipment, TR Modules, Vacuum Interrupters, mechanical parts, cable looms, radar spares, sub assembly of Radar & EW Systems, assemblies and sub-assemblies of Missile Systems, Shelter Spares, Electronic Fuzes, etc. The Export order book, as on 31 January 2022, stands at US $347.28 Million including Offset orders of US $157.99 Million. BEL is fast expanding its global presence, putting its best foot forward to give a thrust to exports worldwide. All-out efforts are being made to tap new markets across the globe. In a bid to develop new markets in the Indian Ocean Region (IOR) and friendly foreign countries (FFCs), BEL has operationalised overseas marketing offices in Oman, Vietnam, Sri Lanka and Myanmar. BEL has also expanded its Singapore and New York Regional Offices to handle marketing activities. The Government is encouraging defence exports through many policy initiatives and has set a target of Rs.35,000 Crs by 2025. BEL has identified Exports & Offsets as one of its thrust areas and has drawn up plans to offer its select products and systems to various export markets. Some of the other products and systems which are being promoted for exports include Homeland Security solutions, Smart City solutions, Border Protection Systems and Coastal Surveillance System. Having established a Coastal Surveillance System (CSS) for a few neighbouring countries, BEL is interacting with the Ministry of External Affairs for supply of CSS to other friendly countries. BEL is also focusing on Offset as a potential avenue for revenue generation. BEL is interacting with many foreign OEMs to meet Offset obligations in various programmes of the MoD. BEL has identified contract manufacturing (build-to-print and buildto- spec) for foreign OEMs and partnerships in the form of Transfer of Technology of the latest systems and solutions as areas of emerging export opportunities. Efforts are also on to establish long term supply chain relationship with global players.
D-4 Antidrone System
Vayu: Could you brief us on some of BEL’s important programmes for which tie-ups have been forged with leading defence and aerospace firms worldwide?
BEL:BEL has active collaborations with top Defence and Aerospace firms. In some specific niche technology areas, BEL does look for collaboration with foreign firms to meet the requirement of Indian customers. Similarly for various programmes of foreign OEMs, BEL is the preferred supply chain partner. BEL is at present executing an order from ELOP, Israel, for EOIR Payloads (CoMPASS) and other airborne systems. The Company is involved in the manufacture and supply of systems/ subsystems required for missile systems for IAI, Israel. BEL is also working on the development of software for a C4I solution for Rafael, Israel. BEL is supplying RF Super Components to Thales through a JV between BEL and Thales (BTSL), for Rafale aircraft. BEL is also working with several OEMs in USA and Russia for various products and systems such as Data Link II, IFFI (Identify Friend or Foe Interrogator), etc. Apart from these, the Company is actively interacting with many other OEMs such as Elisra (Israel), Telephonics (USA), and Saab (Sweden), to explore aerospace related business opportunities.
Low Level Light Weight Radar
Vayu: Could you tell us about BEL’s ongoing programmes with the Indian Air Force?
BEL: One of major ongoing programme is Air Defence Weapon System, which is currently under execution. This is a turnkey contract with an additional requirement of setting up specialised infrastructure. The other major programmes are Integrated Air Command and Control System (C4I System developed for IAF), Integrated Perimeter Security System, Radar Warning Receivers (RWRs) for aircraft of IAF, Missile Warning Systems, Self Protection Suite, EW Suites, etc. BEL has been supplying a range of products, systems and services for the Indian Air Force, which include Electronic Warfare Systems, Avionics, Weapon Systems, Radar and Fire Control Systems, Communication systems, C4I Systems, Homeland Security, EO Payloads for Helicopters, Counter Drone Systems, etc. BEL’s airborne EW products include Radar Warning Receivers for aircraft and helicopters, new generation Integrated EW Suites for fighter aircraft and Self-protection Suites for helicopters with light-weight RWR, laser and missile warning capabilities, state-of-the-art Jammers, etc. BEL has been actively associated with the prestigious Light Combat Aircraft (Tejas) programme since 1994. BEL has been partnering for many years with various DRDO labs like ADE, ADA and DARE in the development and manufacturing of various avionics grade systems for the LCA. BEL’s avionics products for Tejas include flight-critical equipment like the Digital Flight Control Computer, Flight Control Panel, Air Data Computer, Mission Critical Line-Replaceable Units (LRU) like Pylon Interface Box and Stores Interface Box, Head Up Displays, Cockpit Modules and Data Link equipment. BEL is actively participating in the MRSAM weapon system programme of the Air Force, which is a joint development programme between DRDO and IAI, Israel, by supplying sub-systems such as Combat Management System, IFF Mk II, etc, for the weapon system. BEL has been supplying various Radars for Air Defence, Surveillance and Fire Control to the Indian Defence Forces since many decades. In the area of Communication, BEL has developed the Software Defined Radio (Airborne) version. Software Defined Radios (SDRs) are multiband, multirole radios. These radios are backward compatible, inter-operable with legacy radios and capable of high data rates. BEL is engaged in projects such as TROPO upgrade, Mobile Radio Relay (DMRR) upgrade, Communication terminals for Advanced Landing Ground (ALG), etc, for the IAF. In order to strengthen the security infrastructure of critical assets, BEL is executing the Integrated Perimeter Security System for IAF. Similarly in the Unmanned Systems domain, BEL is engaged in the design, development, manufacturing and supply of Payloads and Ground Control Stations for UAVs. BEL has also developed various C4I or Network Centric Systems for the Indian armed forces to network and provide a Digital Battle Space for geologically dispersed forces.
Software Defined Radio manpack
Vayu: Tell us about your initiatives to diversify into the civilian business?
BEL:Defence, being the mainstay of BEL, has traditionally been contributing to around 80% of the Company’s annual sales revenue. BEL, however, has been continuously exploring opportunities in allied 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 Rs. 2 Lakh Crores. Some of the areas BEL is focussing on in non-defence include solutions for Civil Aviation sector including Air Traffic Controller Radars, Anti Drone systems, Space / Satellite Electronics, Space Launch Vehicles, Satellite Communication Services, Spacegrade Solar Cells, Unmanned Systems, Satellite Assembly & Integration, Solar Business, Railway and Metro solutions, Software as a Service, Network & Cyber Security, Energy Storage products for Electric Vehicles (Li-ion & Fuel Cells, Charging Stations, etc), Homeland Security & Smart City businesses, Smart Meters, a range of Medical Electronic and health care solutions (ICU Ventilators, Dialysis Machines, Patient Monitoring System, UV Sanitiser, Telemedicine, Medical Simulators, Portable CT Scan, Medical Displays, X-ray C Arm, Ultra Sound, MRI, etc), Artificial Intelligence, Communication Radios & Networks, Composite Shelters & Masts, etc. This wide bouquet of businesses in non-defence would play a key role in driving BEL’s growth in the coming years.
Tethered UAV
Weapon Locating radar-BEL
Vayu: In recent years, the Government of India has stressed on the need to involve the MSMEs, private industry and start-ups in the Defence sector. What are BEL’s initiatives to promote such initiatives?
BEL: The Defence Sector is being opened up for private sector participation with the evolution of Defence Procurement Procedure. In this changing business scenario, BEL is focusing on enhancing interactions at various levels and building long-term relationships with customers, emerging Strategic Partners and other key stakeholders in the Indian Defence industry as a trusted and committed partner. Be it the efforts that the Company has been putting in to engage in collaborative R&D in addition to augmenting its own R&D set up — its recent attempts to outsource work to Indian private industries and MSMEs, or the path breaking decision to go in for Public-Private partnerships to execute turnkey projects, BEL is leaving no stone unturned to ensure that it is in sync with the Government’s larger goal of indigenisation and self-reliance. BEL has formulated a long-term Outsourcing and Vendor Development Policy and has been taking several initiatives in order to broaden the domestic vendor base by implementing online vendor registration and e-procurement processes including GeM. This is in line with the ‘Make in India’ initiative where enhanced thrust has to be put to develop domestic players. BEL has also made provisions for entering into Long Term Agreements (LTAs) with reputed vendors with an objective to secure the supply of items or services over a specified period of time as per mutually agreed terms and conditions. Make in India Display Cells have been established at all Units of BEL. The procurement from MSMEs by BEL has been over 20% in the previous years. BEL also takes part in various events organised by the Government of India to promote MSMEs. Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities. BEL has identified several areas for partnership with start-ups in new emerging areas including Machine Learning, Cyber Security, Artificial Intelligence, Embedded Computing and other latest technologies which can be used for Defence electronics applications. Defence Innovation Organisation (DIO) is a Section-8 company, created jointly by BEL and HAL to support the country in building an eco system of entrepreneurship and innovation in Defence in India by implementing the iDEX framework. iDEX is aimed at fostering innovation and technology development in Defence & Aerospace by engaging industries including MSMEs, Startups, individual innovators, R&D institutes and academia and providing them R&D grants. iDEX will function as the executive arm of the DIO. The Company is also working on emerging technologies such as Artificial Intelligence, Big Data Analytics, Internet of Things, 5G Wireless Communication, Robotics & Computer Vision, Augmented & Virtual Reality, Quantum Cryptography, etc, under R&D collaboration with academia and Start-ups.