Rajesh Dhingra, CEO (Business Development) of Reliance Defence talks about naval segment being a priority for the company in a chat with BW Businessworld.
On India as a production baseReliance Defence envisions an Aerospace Park at MIHAN, Nagpur and Defence Land Systems Park at Indore SEZ. Both the Greenfield facilities aim to create a comprehensive eco-structure through backward integration under the government’s Make in India programme for indigenous manufacturing of aerospace and defence equipment.
On the target set by the Indian government to boost arms exports 20-fold across a decade Reliance Defence has a mission to develop weapon platforms that not only address domestic requirements, but can also satiate global demand. The Indian Naval projects are valued in excess of Rs 2,50,000 crore, but globally the defence shipbuilding demand is estimated to exceed $800 billion over the next 15 years, with the demand for auxiliary vessels alone rising to Rs 7,00,000 crore ($100 billion), offering large opportunities. With the largest and most modern shipyard in the private sector in Pipavav, the naval segment is our priority.
On the private sector’s assumed 25 % share in defence production The combined production value of all DPSU and PSU yards stood at Rs 7,077 crore during 2013-14 against a defence shipbuilding order book of Rs 85,600 crore, or almost 12 times the production capability. In contrast, private sector shipyards, with orders of just Rs 6,300 crore, are operating at a very low capacity utilisation. This by itself offers an immediate opportunity for more than 25 per cent share for the private sector.
On products in the pipeline With world class infrastructure assets of over Rs 6,000 crore and the largest dry dock at our Pipavav Shipyard we are a key player, providing indigenous solutions for the Indian Navy’s Rs 3 lakh crore acquisition plans.
India’s first integrated Dhirubhai Ambani Aerospace Park, spread over 289 acres at Mihan, Nagpurwill, targets all programmes of the three defence services in the aerospace sector, estimated at Rs 2 lakh crore.
In the land systems segment, our primary focus is the modernization plan of the Indian Army valued at Rs 5 lakh crore over the next 15 or 20 years. Last year Reliance Defence invested in planning, prioritizing, people and partnerships. Each of these will play a definitive role in establishing us as a market leader. We have key strategic partnerships with global defence majors to address every major upcoming programme in the spheres of aerospace, naval and land systems.
On its business targetReliance Defence is committed to establishing its brand in all the three domains of this sector naval, aerospace and land systems. Our planned Greenfield facilities in the aerospace and land systems segments, with niche research and development centres for each domain, will drive higher revenues in the succeeding five years of our project implementation.
Reliance Defence believes that the key to long-term competitiveness and cutting edge strategy is through indigenous design, development and prototyping. A Centre for Aerospace Design, Engineering and Innovation is at Bangalore, while a similar Centre for Naval Systems is already accredited with the Indian Navy / Coast Guard.
suman@businessworld.in
BW Reporters
Suman K Jha was the deputy editor with BW Businessworld
