Bangalore: Aiming to transform itself into a $2-billion global firm in four years, defence PSU Bharat Electronics Ltd is embarking on technology upgradation, contract manufacturing and a new thrust to step up exports.
The Bangalore-based defence electronics firm, which was conferred the Navratna status last month giving it greater financial and operational autonomy, is also planning to diversify into civilian segment.
In an interview to PTI, BEL chairman and managing director V V R Sastry said technology upgradation is going to be the company’s core strategy going forward.
“We have identified areas where technology has to be updated, we have drawn up an implementation strategy....which technology and with whom to cooperate — with DRDO, in-house development or sourcing technology from outside or whether it’s going to be transfer of technology”, he said.
BEL is looking at different strategy for different products and has drawn up plans. It has 350 products.
BEL, which claims 95% of the market share for strategic electronics in India, makes a wide range of military communication systems, radars and sonars, naval systems, telecom and broadcast systems, electronic warfare systems, tank electronics, opto electronics, professional electronic components and solar powered systems.
Noting that BEL has already invested in manufacturing infrastructure, he said, the company as part of human resoures initiative is working on changing work culture, retraining the people and improving productivity.
On exports, Sastry said the focus so far has been on selling products and services to African countries, South East Asian nations and neighbouring markets.
“Now we are looking at contract manufacturing of professional electronics.”
BEL expects revenues of $6-7 million from contract manufacturing in 2006-07.
“We are aiming at achieving a turnover of $1 billion (Rs4,100 crore) this year. We want to touch $2 billion by 2010-11. This is our target,” Sastry said.
He said BEL is looking to foray into the civilian segment.
“We want to expand into where we are not concentrating till now....civilian segment, especially security systems, homeland security systems, civilian communication projects, wide area network, state wide area network and e-governance projects”, Sastry said.
BEL would expand into any professional electronics segment where electronics is a part and systems are required. “We are looking at new opportunities”, he said.
BEL has already bid for two civilian project tenders. The company is upbeat about opportunities in that space, as each state is expected to float tenders in the region of Rs100-150 crore for various such projects, he said.