Star PSU: Bharat Electronics expands global presence to boost exports

According to preliminary figures, BEL completed 2021-22 with a turnover of almost Rs. 15,000 crore (US$ 1.93 billion), including US$ 32.3 million in export sales, up from US$ 51.9 million in 2020-21. In the last two years, it has exported to the United States, France, Israel, Germany, Switzerland, Sweden, China, the Republic of Armenia, the Maldives, Indonesia, Sri Lanka, Turkey, and Bhutan.

BEL has also developed a long-term outsourcing and vendor development programme in line with the Make in India initiative and the government's efforts to encourage micro, small, and medium companies. This has increased the emphasis on domestic vendors and outsourcing partners. BEL has already established marketing offices in Oman, New York, Singapore, Vietnam, and Sri Lanka in order to increase its global business, and it is collaborating closely with Indian enterprises and local partners in a number of locations. The company anticipates exports to increase from roughly 3% of revenues presently to more than 10% in the coming years. At the moment, the export order book exceeds US$ 400 million.

The country has set an ambitious objective of Rs. 35,000 crore (US$ 4.50 billion) in defence exports by 2025, and it is making a strong policy push to achieve this, as well as increasing private sector engagement. According to Morgan Stanley Research, Indian defence equipment output is predicted to rise at a 10% annual rate between FY21 and FY25. BEL has already stated that it expects to beat industry growth figures.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.