“A more happy case was that of the Versatile Console System (VCS) for naval ships. D. Lakshmi, the first recruited woman engineer of BEL, handled this development and successfully completed it on time and within the budget. The first system was fitted during the modernisation of INS Vikrant. The saree-clad Lakshmi bravely navigated her way through the maze of cables and ladders typical of a ship under construction and successfully installed and commissioned the system.
Lakshmi also worked on transistorised gun control equipment for battle tanks. Standing atop a fast-moving, revolving turret and testing the gun control equipment is not an easy job and certainly not considered a “womanly” job. But Lakshmi completed the test successfully and won the admiration of the Army personnel, who had earlier scoffed at her.
S. Rangarajan, better known as Sujatha, and a leading writer of Tamil fiction, was the computer engineer who developed the Electronic Voting Machine which has made it possible for 130 crores of Indians to vote in the general election without a glitch.”
Such fascinating nuggets are found throughout the book “Inside the Solid State — The Story of Bharat Electronics”.
The story of BEL is a welcome new arrival in the neglected genre of company histories in this country. This nearly 800-page volume not only chronicles the saga of one of the prized jewels in India’s public sector, it also addresses the key issues that confront hi-tech manufacturing in this country and offers a critique of the Government’s policy regarding public enterprises. Most of the published company histories turn out to be hagiographies of the bosses rather than objective chronicles of the enterprise, but this book differs.
Though primarily meant for serious students of Business Schools, the book also caters to the interested lay reader. The first thing that strikes the reader is the reader-friendly writing style. Flavoured with anecdotes and laced with a dash of humour, it really reads like a story and despite its size, readers can navigate through the book thanks to the abstracts provided at the start of each chapter. The general reader can get a fair idea of the company’s history by reading through Part I (the CEOs). Practising managers and students of management can go on to Part II (Company’s strategies). And readers interested in electronics can go through the relevant chapters.
The key factor for the company’s success is shown to be the company’s commitment towards developing indigenous technology as evidenced by the ratio of its R&D expenditure to sales, which is amongst the highest in the country. The book also reveals how BEL was able to overcome the major challenge posed by the U.S. sanctions not only by the strength of its R&D but also by a bold ‘out of the box’ strategic decision to use ordinary commercial grade components in place of military grade components in some cases and redesign products without affecting their performance.
Other cases in which BEL developed indigenous products in the face of foreign firms quoting unreasonable prices or trying to exploit monopoly situations, have also been outlined. A typical example is the case of the Fly catcher radar.
The book also deals with some of the major issues that confront India today. It emphasises the need to move away from conventional planning to multi-scenario planning. In a way, this has anticipated the recent decision of the Government to abolish the Planning Commission.
Regarding FDI in manufacturing, the book cautions that the mere dismantling of the Licence regime and opening of doors to foreign companies would not achieve much. Foreign companies are unlikely to rush in unless the local outfit can offer substantial technological contribution by way of innovation or adaptation. In this context, the book gives a detailed account of the steps taken by China in the 1980s and 1990s for laying down high-class technology infrastructure.
The Government’s handling of public enterprises comes in for a frank appraisal in this book. Despite being a top performer, the company was consistently denied a free hand not only in strategic decision-making but even in purely operational matters. When the company tied up with Hewlett Packard, a global leader in several hi-tech product lines, and was set to become its global manufacturing hub, the Government scuttled the deal despite the Company’s frantic appeals and this was at a time when China was entering into hundreds of such tie-ups in several fields.
Among the many instances cited in the book, “five CEOs in a period of ten years” really takes the cake. Even housemaids are rarely changed that often!
The company has generally been competently led but, two CMDs, BV Baliga and VK Koshi have played key roles in critical periods and made BEL the great success story it is today.
But what about the future? With the defence sector thrown open to private firms and MNCs — can BEL hold its own? The answer is simple. Will it be allowed a level playing field?
The book cites an instance where BEL made a winning takeover offer but, by the time government approval came, a nimble-footed intruder from the private sector had pirated the chance away. This should not continue to happen. The approvals needed for a PSE should be no more (and no less) than those for the private sector. Can the Modi government ensure this?
S Krishnan the lead author of this book was the Company’s first Finance Director and his stints in the Government, BHEL and IIM have helped to place the Company’s issues in the larger national context. S Prabhala and VK Koshi co-authors were former CMDs of the Company.
However, the book could have done without some avoidable repetition which might put off some of the readers. The proof reading has also been less than perfect.
But these are minor flaws and this book deserves to be read by our managers, policy makers and management teachers.
It is an outstanding effort. Alongside, one also feels sad that the much-celebrated Padma Awards have bypassed people like Lakshmi and S. Rangarajan who blazed new trails and have left a legacy for all times to come.
INSIDE THE SOLID STATE — The Story of Bharat Electronics: S. Krishnan, S. Prabhala, V.K. Koshy; Westland Books Pvt. Ltd., 61, Alapakkam Main Road, Maduravoyal, Chennai-600095. Rs. 1500.
