Interview with Suresh Kumar K V,Director (Marketing), Bharat Electronics Limited (BEL)

India’s state-owned Defence Public Sector Undertaking (DPSU) Bharat Electronics Limited (BEL) which racked up Rupees 350 billion worth of new orders in 2024 is now targeting defence exports. “In the last few years, we have made substantial progress, both in terms of export orders acquisition and dispatches. We have identified multiple products and systems for targeted marketing in focussed export markets,” Suresh Kumar K V, Director (Marketing) at BEL told GBP Daily News before the start of India’s biennial airshow, Aero India.

How do you look at the current international market for defence products, and what strategies is BEL employing to strengthen its global presence?

The Ministry of Defence has set an ambitious target of Rupees 50,000 Crore exports by 2028-29. BEL is, therefore, fast expanding its global presence by making all-out efforts to tap new export markets across the globe. In the last few years, we have made substantial progress, both in terms of export orders acquisition and dispatches. We have identified multiple products and systems for targeted marketing in focussed export markets. In a bid to develop new markets in the Indian Ocean Region and friendly foreign countries (FFCs), we have also operationalised new overseas marketing offices.

All these efforts have paid rich dividends. Our Exports business saw a robust uptick in FY 2023-24 with sales growing by 92 percent to a record USD 92.98 Million. BEL's products continued to find increased acceptance in countries such as France, USA, Spain, Israel, Germany, Armenia, Sri Lanka, Mauritius, UK, etc, a clear indication of the company's growing capabilities. BEL also has a healthy export order book of USD 387 Million USD. BEL is enhancing its geostrategic reach and strategically opening overseas marketing offices in the Indian Ocean Region, South East Asia, Middle East Region and Americas.

Can you elaborate on your diversification plans?

Defence has traditionally been contributing to around 80 percent of the Company's annual sales revenue. BEL, however, has been continuously exploring opportunities in allied Defence and Non-Defence areas. The Company aims to increase its Non-Defence share in the overall business in the coming years. The total opportunity in the Non-Defencebusiness segment being pursued by BEL in the next 10-15 years is more than Rs. 2 Lakh Crores. Some of the areas BEL is focussing as part of diversification efforts include solutions for Civil Aviation, Unmanned systems, Railway & Metro systems, Network & Cyber Security, Smart City solutions, Space Electronics, Arms & Ammunition and Seekers, Medical Electronics and Artificial Intelligence.

Tell us about your expansion plans?

From time to time, depending upon the growth needs and opportunities, BEL has been taking major initiatives to modernise and expand its infrastructure. Some of the new infrastructure initiatives taken up recently include setting up of a Defence System Integration Complex for Missiles and Weapon Systems at Palasamudram, Andhra Pradesh; state-of-the-art manufacturing facility for Electro Optics and IIR Seekers at Nimmaluru; Fuze manufacturing facility at Nagpur; manufacturing facility for Land-based EW systems at Ibrahimpatnam, Telangana; modernisation of storage magazine and hot integration facility for arms & ammunition at Vellore; and integration facility for QRSAM at Agra. 

Please tell us about your company's financial performance, turnover, order book position, etc?

BEL has always been a profit-making PSU despite various challenges including stiff competition. FY 2023-24 saw the company achieve a record turnover of Rupees 19,819.93 Crore as against Rupees 17,333.37 Crore in FY 2022-23, thereby registering a growth of 14.35 percent. The growth was driven by strong performances across all segments. Defence contributed to 81 percent of revenue in FY 2023-24 with the balance 19 percent coming from the non-defence segment. Profit after Tax grew by 33.7 percent to Rupees 4,020 Crore in FY 2023-24 as against Rupees 3,007 Crore in FY 2022-23. BEL also continued the momentum in order acquisition by booking highest ever annual order inflow of Rupees 35,046 Crore during FY 2023-24. The company's order book position as on January 1, 2025, stands at around Rupees 71,000 Crore, giving it stable revenue visibility.