New Orders From Radars, Missiles To Drive Growth For Bharat Electronics

State-owned defence and aeronautics company Bharat Electronics Ltd (BEL) today said that new orders in categories like radars, missile systems, communication & network systems, tank electronics, gun upgrades, and electro-optic systems will be among the key growth drivers this year (2016-17).

SK Sharma, chairman and MD of BEL said that about 7-8 per cent of its revenues last year came from new products such as night vision equipments, 2D and 3D surveillance radars, software defined radio (naval version), and laser warning systems.

BEL’s revenue for 2015-16 rose 12 per cent on year to Rs 7,522 crore from Rs 6,695 in the previous year. Its order book value stood at Rs 32,022 crore as against 21,617 crore in the previous year.

The company reported export sales of $85 million during 2015-16, up 47 per cent from $57.85 million in the previous year driven by its indigenously developed naval surveillance radar which was exported for the first time.

This year, BEL aims to continue its focus on indigenous technology in line with prime minister Narendra Modi’s ‘Make in India’ initiative. Last fiscal, 86 per cent of the company’s revenue came from indigenous technology with 40 per cent of input materials being outsourced from Indian private industries. Procurement from micro, small and medium enterprises (MSMEs) increased to 20 per cent during 2015-16 as against 8 per cent during the previous year.

This year, the company is also pursuing business opportunities in areas such as solar energy, homeland security, smart cards, and telecom, Sharma said.

In continuation with its focus on innovation, the company increased its expenditure on research and development to Rs 704 crore last year, up 28 per cent from Rs 549 crore in the previous year.