Vayu: How
do you look at the current international market for defence products, and what
strategies is BEL employing to strengthen its global presence?
The Ministry of Defence has set
an ambitious target of Rs. 50,000 Crore exports by 2028-29. 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% to a record USD 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 USD 387 million
USD. 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.
Vayu: Can
you elaborate on your diversification plans?
Defence has traditionally been
contributing to around 80% 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 Rs. 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.
Vayu: Tell
us about your expansion plans
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.
Vayu: Please
tell us about your company's financial performance, turnover, order book
position, etc.
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 Rs. 19,819.93 Crore as against Rs.
17,333.37 Crore in FY 2022-23, thereby registering a growth of 14.35%. The
growth was driven by strong performances across all segments. Defence
contributed to 81% of revenue in FY 2023-24 with the balance 19% coming from
the non-defence segment. Profit after Tax grew by 33.7% to Rs. 4,020 Crore in
FY 2023-24 as against Rs. 3,007 Crore in FY 2022-23.
BEL also continued the momentum
in order acquisition by booking highest ever annual order inflow of Rs. 35,046
Crore during FY 2023-24. The company's order book position as on 1 January 2025,
stands at around Rs. 71,000 Crore, giving it stable revenue visibility.