The Hindu Business Line : BEL signs up KPMG for growth strategy

“A six-month contract has been signed wherein KPMG will study BEL’s present plans and identify opportunities for expansion of business in the existing areas as well as new business segments not [currently] addressed by BEL,” the 54-year-old defence electronics PSU announced on Tuesday.

BEL, with 2007-08 sales turnover at Rs 4,100 crore and net profit of Rs 1,170 crore, makes diverse products ranging from defence electronics, radars, signals, telecommunications to satellite antenna, solar cell panels and broadcasting equipment.

A statement citing BEL’s Chairman and Managing Director, Mr V.V.R. Sastry, said the company was currently consolidating its core strengths after being on the growth path over the last decade.

“The time has come for BEL to revisit its growth and business strategies and make it more suited to today’s competitive environment. KPMG will draw detailed business plans for the chosen areas and also assist in implementation and project monitoring where necessary,” he said.

Mr D.A. Mohan, Executive Director (Strategy and Systems), and Mr Ramesh Srinivas, Executive Director, KPMG India, signed the contract recently in the presence of Mr Sastry and KPMG India’s COO, Mr Richard Rekhy.

Project proposals

Mr Mohan told Business Line that the mandate covered project proposals for new businesses, technology match and manpower to identifying potential partners for any future collaborations after the initial six months.

The steering committee would consider its implementation thereafter. BEL’s eight units and seven strategic business units are spread across the country – three of them in Bangalore.

According to Mr Rekhy, competition had become a global phenomenon today and modern businesses need to adapt to it quickly. KPMG, which has 2,000 international and national clients, has, in the past, helped various other firms evolve appropriate strategies to meet the challenges of globalisation.

“We are confident that BEL can reaffirm its position as a leader in the industry and register a quantum jump in growth,” he said.