Bangalore: Defence PSU Bharat Electronics (BEL), which was accorded Navratna status recently, is planning to acquire technology companies overseas.
“We are looking at acquiring some technology companies,” Chairman and Managing Director of the Bangalore-headquartered defence electronics firm V.V.R. Sastry told PTI.
“We are looking at companies which can provide core technologies for our future growth,” he said.
BEL, which claims around 95% marketshare for strategic electronics in India, recorded a turnover of Rs 3,960.38 crore, and a profit after tax of Rs713.85 crore (provisional) in 2006-07.
BEL, which was conferred the Navratna status last week giving it greater financial and operational autonomy, has identified five-six technology areas, including those related to phase array radars, for acquisition.
“We are looking at (acquiring) futuristic technologies where we feel that developing such technologies inside the company will take a longer time,” Sastry said.
“So, we are looking at that type of technology companies. We are evaluating a few candidates, and we have started discussions.”
He indicated that potential acquisition target is European firms, as “the US is still not opened up and there are some restrictions (there)”.
Being a cash-rich company, the size of the acquisition does not matter for BEL, Sastry said, adding, what’s key is the technological ability of the (aquired) companies so that BEL could exploit its future product development.