The Hindu Business Line : BEL sets export target of Rs 500 cr by 2007

BHARAT Electronics is working at an export target of Rs 500 crore and sales turnover of Rs 5,000 crore by the year 2006-07. As part of its globalisation strategy, BEL is pitching its export thrust at France, Sweden and other European nations, Africa, SAARC and the CIS nations where its current licensed MNC partners have a footprint.

According to years-old licensing arrangements, a few companies from Israel and Sweden have had access to the Indian market. Now the time has come for them to reciprocate and give up some of their market to BEL, senior company officials said.

At an informal meeting with a small media group, Mr Y. Gopala Rao, who took over as CMD on October 1, said in the next three years, the 50-year-old defence electronics major would be looking to sell niche products offering total solutions in these markets.

The export target would be 10 per cent of the total turnover it hopes to achieve during this period, he said.

The company closed 2002-03 with sales of Rs 2,571 crore.

BEL would like to expand the product line in the six core areas of growth. "In the new business environment, we would like to transform the company into a globally competitive one in areas such as radars, sonars, communication equipment, consumer electronics, components and in particular opto-electronics," Mr Rao said. So far, about 60 per cent of the exports have been in the civilian line, with the global defence market proving a tough customer.

"We have been studying customer needs in each area of our operation. BEL will go for 5-6 strategic alliances and proactively develop new products based on customer needs. It has already been infusing capital of Rs 150 crore each year," he said without naming the partners.

The focus is shifting from manufacturing and assembly to design skills, and technical and human skills are being sharpened to meet the goals. The defence-civilian product mix would remain at around 70:30.

The order book as on April 1 this year is at a "comfortable" Rs 6,944 crore. Mr Rao said this will be maintained by April 2004 too. For fiscal 2003-04, BEL is projecting sales of Rs 2,750 crore and has already achieved Rs 1,128 crore for the first half.

Mr S.C. Khanna, Director (Commercial & MIS), said there is a market for radars and communication equipment abroad. Though another product, the electronic voting machines, has been customised for Singapore, South-East Asian nations and Malawi, the hitch was that these countries still needed to have laws allowing EVMs. This year's EVM order would go up to 1.4 lakh.

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BEL sets export target of Rs 500 cr by 2007