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Laggar betting big on defence sector

The company is hoping defence purchases could pick up along with a rise in demand for armoured vehicles

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Vijay C Roy Chandigarh
Last Updated : Jun 08 2014 | 10:37 PM IST
With a change of guard at the Centre, Punjab-based Laggar Industries Ltd, one of the leading developers and manufacturers of bulletproof steel, armoured vehicles and allied security products expects a significant increase in business. The company is hoping defence purchases could pick up along with a rise in demand for armoured vehicles.

After the Mumbai attacks and rise in terror incidents, many state governments had ordered for allied security products like bullet-proof morcha, head gear, etc, in addition to bullet-proof vehicles. However, their demand remained the same.

Speaking to Business Standard, Sunchit Sobti, director, Laggar Industries, said, "We are dependent on security forces and politicians for business. As far as defence sector is concerned, there has not been major procurement for security products like head gear, bullet-proof morcha, steel inserts for jackets, etc in the past five years. So, we expect Defence Minister Arun Jaitley to give his nod for procurement of security-allied products for the defence forces."

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Analyst also said the demand for armoured vehicles would rise significantly with the new government. Earlier armoured vehicles were bought only by the government to provide security for Cabinet ministers, senior officials or politicians. But now, corporate sector is also coming forward, especially liquor companies, property dealers and infrastructure firms, to get their Sports Utility Vehicles armoured. This is providing a new and profitable business stream for companies engaged in armouring.

"The ownership ratio for armoured vehicle between the government and private individuals is 70:30. We expect that in near future the ratio would shift to 60:40,"he added.

Earlier, the company has armoured 40 diesel locomotives of the Indian Railways which used to ply in the North-east region.

Popular models of armoured utility vehicles include the Ambassador Car, Mitsubishi Pajero, Toyota Land Cruiser, M&M's Scorpio, and Toyota Fortuner.

Besides catering to the domestic market, the company also exports bullet-proof glass and steel and Ballistic Glass in countries like Nigeria, Kenya, Latin America, South Africa, Ireland, Philippines, Malasia, etc.

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First Published: Jun 08 2014 | 8:51 PM IST

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