Bharat Electronics: Ready To Take Off

Peak valuations notwithstanding, state owned Bharat Electronics is a good proxy play on Indias ambitious defence plans.

- Jitendra Kumar Gupta

The country’s armed forces have a potent weapon in their arsenal. In May, the army inducted India’s first homegrown surface-to-air missile system Akash. The missile can take on multiple targets up to a maximum range of 25 km and at an altitude of 20 km, aided by sophisticated radars and control systems. Last month, the Indian Air Force (IAF) formally inducted the 96% indigenously made state-of-the-art weapon system. The IAF has signed an initial contract for eight squadrons of the Akash defence system, with each squadron featuring two firing units and four launchers. Each launcher has a capacity to fi re three missiles in quick succession. The missile can not only target enemy aircraft up to 30 km away and at altitudes up to 18,000 m, but can also annihilate aerial targets such as fighter jets, cruise missiles and air-to-surface missiles. Not surprising, then, that SK Sharma is proud to be associated with the manufacturing process of the missile. The 59-year-old is the CMD of the state-owned Bharat Electronics (BEL), which, along with another state undertaking, Bharat Dynamics (BDL), bagged the #4,000 crore order for the missile system. While Bharat Dynamics is the main integrator partner, Bharat Electronics is developing the electronic systems, comprising long-range capture surveillance and capture radar, fi re control radar and control systems. In short, BEL’s share of the pie is around #3,000 crore-#4,000 crore but, more importantly, the quantum of orders will only increase going ahead.