'Civilian Sector Focus Key for BEL’s Future Growth'

Bharat Electronics Limited, a leading defence PSU has been a major contributor to the three Indian armed forces. But off late, the Navaratna company will focus on the civilian sector for future growth.

Presently with over 80 percent of the projects coming from the defence sector, BEL plans to give equal amount of focus on the civilian sector as well. This was conveyed at the announcement of BEL’s 2014-15 results.

SK Sharma, CMD, BEL Ltd said, “Indigenisation will be its main focus area but it is also eyeing a bigger pie in civilian segment, as capacity enhancement is helping it achieve the targeted growth in the defence sector.”

“Indigenisation continues to be our main focus, we are very much part of the ‘Make in India’ programme," he adds.

Segments like Radar and Missile Systems, Communication and Network Centric Systems, Tank Electronics, Gun Upgrades and Electro-Optic Systems and Electronic Warfare and Avionics Systems will continue to drive BEL’s growth in the coming five years,” remarks Sharma.

Sharing the performance highlights of BEL in 2014-15, he said capacity enhancement and creation of new test facilities is helping the company achieve its targeted growth in the defence sector.

“BEL is also eyeing a bigger pie in the civilian segment and is pursuing business opportunities in the fields of solar, homeland security, smart cards and telecom,” he added.

In the backdrop of increasing competition in the defence business from the private industry, Sharma said BEL was all geared up with strategies and action plans to maintain its technological edge and ensure future growth.

“With its inherent strengths, strong R&D, state-of-the-art infrastructure, competent workforce and diverse product range, BEL intends to retain its leadership position in strategic electronics,” he said.

BEL said the company’s turnover during 2014-15 was Rs. 6,695 crore as compared to Rs. 6,174 crore in the previous fiscal and its Profit After Tax stood at Rs. 1,167 crore as compared to Rs. 932 crore last year.

The company’s order book value as on April 1, 2015 stood at Rs. 21,600 crore as compared to Rs. 23,452 crore on the same date last year; while the expenditure on R&D stood at Rs. 549 crore which is 8.20 per cent of the turnover in 2014-15, compared with Rs. 467 crore which is 7.56 per cent of the turnover in the year—ago period.