By Staff Correspondent
The international defence market is buzzing with opportunities, and BEL is charging ahead with ambitious strategies to strengthen its global footprint! With a clear focus on tapping new markets in the Indian Ocean Region and friendly foreign countries, BEL has seen phenomenal export growth—92% in FY 2023-24, reaching a record USD 92.98 million in sales. As Indian Aerospace & Defence learns from Suresh Kumar K V, Director (Marketing), BEL, a strong export order book of USD 387 million, BEL is expanding its geostrategic reach by setting up overseas marketing offices and offering cutting-edge products that are gaining global acceptance. Simultaneously, BEL is diversifying into exciting non-defence areas like Civil Aviation, AI, Smart City solutions, and more, while modernizing its infrastructure to support growth. Financially, BEL is thriving, achieving a record turnover of Rs. 19,819.93 Crore in FY 2023-24 with a 33.7% profit jump. With a robust order book of Rs. 71,000 Crore, BEL is all set to soar higher!
Q. How do you look at the current international market for defence products, and what strategies is BEL employing to strengthen its global presence?
A. The Ministry of Defence has set an ambitious target of Rs. 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 focused 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% 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. 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.
Q. Can you elaborate on your diversification plans?
A. Defence has traditionally been contributing to around 80% 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.
Q. Could you elaborate on your recent infrastructure expansion initiatives and their strategic significance?
A. 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.Â
Q. Could you provide an overview of your company’s recent financial performance, including turnover, profit growth, and order book status?
- 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 Rs. 19,819.93 Crore as against Rs. 17,333.37 Crore in FY 2022-23, thereby registering a growth of 14.35%. The growth was driven by strong performances across all segments. Defence contributed to 81% of revenue in FY 2023-24 with the balance 19% coming from the non-defence segment. Profit after Tax grew by 33.7% to Rs. 4,020 Crore in FY 2023-24 as against Rs. 3,007 Crore in FY 2022-23.
BEL also continued the momentum in order acquisition by booking highest ever annual order inflow of Rs. 35,046 Crore during FY 2023-24. The company’s order book position as on January 1, 2025, stands at around Rs. 71,000 Crore, giving it stable revenue visibility.
