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Bharat Electronics Ltd (BEL) with a concerted focus on research and development (R&D) has increased indigenisation and added value to products.
“The company’s total investment on R&D as a percentage of turnover during FY2019-20 stood at 7.5 per cent. Which is one of the highest among the defence PSUs and it is our constant effort towards indigenous development that has led us to achieve 79 per cent of our turnover from indigenous products,” MV Gowtama, Chairman & Managing Director Bharat Electronics, told shareholders.
“About 21 per cent of our revenues came from products manufactured through transfer of technology (ToT) from foreign original equipment makers (OEMs),” he added.
For the company, the defence sector is the mainstay, it has contributed 82 per cent of sales revenue in 2019-20 as against 68 per cent in 2018-19, with the balance 18 per cent coming from the non-defence sector.
Talking on its future prospects, CMD said, “It looks promising as well as challenging. The defence sector is being opened up for private sector participation with evolutions of Defence Procurement Procedure.”
He added that in this changing business scenario, the company is focussing on enhancing interaction levels and building long-term relationships with emerging strategic partners, customers and other key stakeholders in the defence industry.
Covid impact
On Covid-19, Gowtama said “The real impact of Covid-19 on the company is to be seen in the near future as the situation is evolving. However, we have started taking mitigation measures to reduce the impact on the performance.”
The prevailing turbulence in the global business environment has been impacting business and posing a major threat for growth. “To combat the risks associated, the company is foraying into new business areas and keeping pace with the fast changing technological advancements besides enhancing operational efficiency,” he said. “Also, the government’s emphasis on the ‘Make in India’ initiative in the defence sector provides a great opportunity for the company to enhance indigenisation efforts and address the emerging opportunities in the Defence sector,” he added.
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