Public sector defence major, Bangalore-based Bharat Electronics Limited (BEL), which is aiming to double its turnover to over Rs 8,000 crore by 2011-12 through both organic and inorganic routes, has chalked out medium-term and long-term growth plans.
According to a draft medium-term growth plan prepared by the company, BEL aims to achieve a turnover of Rs 8,040 crore by 2011-12, a growth of 96 per cent over that of 2007-08, while the long-term plan envisages a turnover of Rs 10,000 crore.
The company, which currently generates 84 per cent of its revenue from the defence business, aims to increase the civilian contribution to 25 per cent, V V R Sastry, chairman and managing director, BEL said.
The company has appointed KPMG, global consultant, to prepare the blue print for the company’s future growth.
Some of the major programmes taken up by the company include Akash Weapon System (AWS) for Indian Air Force, battlefield surveillance system, thermal imager stand alone system (TISAS) for T-72, thermal imager fire control system (TIFCS) for T-72, development of passive night vision devices, central acquisition radar, combat net radio and a host of civilian products.
Offset business is the major business opportunity that BEL is aiming at in the next few years. About three years ago, BEL identified major projects for offset implementation for both civil and defence segments. A potential of Rs 5,000 crore for BEL’s range of products was identified to be implemented in next 10 years. The company has signed 12 non-disclosure agreements and 11 memorandum of understanding (MoU) with foreign companies such as Lockheed Martin, Boeing, Fincatierie and IAI for offset implementation.
“We have identified offset implementing units and getting accredited for AS 9100 certification. We are also upgrading our manufacturing facilities and modernising R&D infrastructure to meet offset requirements. We have planned a capital expenditure of Rs 570 crore over the next two years to upgrade the facilities,” Sastry told Business Standard.
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As part of the offset business, BEL is likely to get orders in the areas of Special Mission Aircraft, Fleet Tanker, Long Range Maritime Reconnaisance and Anti Submarine Warfare Aircraft (LRMRASW) and UAVs Ground Control Station. Other offset opportunities being pursued by BEL include medium multi-role combat aircraft (MMRCA), multi-role transport tanker, UAVs, VVIP helicopters, self-propelled gun missile systems among others.
The company, as part of its long-term growth plan, aims to become a world class global player in professional electronics market. Its strategic initiatives include enhanced R&D thrust in identified technology areas, develop world class products for global markets and diversify into new business areas.