BENGALURU,BEML, a public sector firm, plans to double its revenues from the defence and aerospace verticals.
“The Centre’s Make in India initiative is showing results. Revenues from the defence and aerospace verticals, which used to be around 10-11 per cent of the company’s total turnover, is likely to touch 25 per cent this fiscal,” Deepak Kumar Hota, CMD of BEML, told BusinessLine.
“In value terms, the company is likely to post ₹800 crore in revenues from the defence and aerospace verticals, against ₹300 crore a couple of years ago,” he added.
After the Make in India initiative was launched, the company built a 1,200-odd supplier base, of which nearly 20 per cent are small and medium enterprises (SMEs).
Now, modernisation of key infrastructure is taking off, and the company is waiting for opportunities in civil aviation, airport infrastructure and defence engineering.
The company, which displayed its products and services at the Aero India 2017 show, got enquiries for Tatra ground support vehicles, armoured recovery vehicles, BMP transmission and aircraft towing tractors, said Hota.
Talking about localisation or indigenisation, Hota said: “The company has achieved 90 per cent indigenisation in the manufacture of mining equipment. In rail and metro it is around 45 -50 per cent, in defence and aerospace it is around 50 per cent. In the manufacture of Tatra trucks we have achieved 70 -75 per cent.” To facilitate more indigenisation, the company plans to throw open its testing facility at Kolar Gold Fields to other companies including SMEs.
At Kolar, BEML has built a test track to carry out ‘acceptance test’ for heavy duty army vehicles like armoured recovery vehicle and main battle tanks.