Bharat Electronics Ltd., the listed, government-owned Defence manufacturer, anticipates another good year. Increasing military orders, exports and the “make in India” fervour augur well. In his first media interview, BEL Chairperson & Managing Director S.K. Sharma shares with Madhumathi D.S. what is in store at the Bengaluru-based company.
Excerpts:
Q: How is BEL poised to perform in the 2015-16 fiscal?
A: 2014-15 was a good year; we achieved a turnover of Rs. 6,671 crore. For 2015-16, we hope to maintain 10 per cent growth. Conservatively, we should be [exceeding] Rs. 7,000 crore to Rs. 7,200 crore this year. The order booked is around Rs. 22,000 crore.
Which orders do you look forward to?
Two key Army projects are the Tactical Communication System and the Battlefield Management System [TCS, BMS]. For the first, we expect a request for proposal to be issued in six months. BMS could be next year. We expect additional orders in Akash missiles in a year’s time. The contract for the Army’s Weapon Locating Radar is expected shortly. Then, there are Naval projects like sonars, communications.
How will new investments pan out?
This year too, our capital expenditure will be around Rs. 400 crore. If you include R&D and infrastructure, it would be 20 per cent of the turnover [around Rs. 1,300 crore].
For TCS and BMS, we must develop test beds for command, control, communication, computer and information systems. Focus will be on manufacturing new generation radars, image intensifier technology for night vision devices. We are setting up a transducer characterisation facility in Bengaluru to test Naval sonars.
How would you overcome old technology hitches, as for missile seekers and night vision devices?
Seekers or missile electronics are a controlled technology that no one will offer us. They have to be at best developed here and we are doing it with the DRDO. For the image intensifier tubes technology, we have tied up with Photonics of France.
Which new products are you working on?
We are working on Software Defined Radios [at] Bengaluru, Kotdwara, Panchkula and Ghaziabad. Naval radios are in trials. The Army and IAF versions will follow, may be against competitive bids.
Are you worried about the private sector’s increasing appetite for Defence contracts?
We always said competition is good and welcome. BEL has won important bids against Indian and MNC contenders in electronic warfare, communication, radars and night vision devices; it has also lost some. The market is growing, there is enough for everybody. The two sectors must compete and collaborate.
