|BEL, a state-owned aerospace and defence company, will invest around Rs. 2,500 crore in the next three years in setting up two new manufacturing plants in Andhra Pradesh, even as the Bengaluru-based company is poised to post Rs. 10,000 crore revenue for the year 2017-18.|
This was revealed by MV Gowtama, Chairman and Managing Director of the company. In 2016-17, BEL had invested around Rs. 600 crore in capex, he told BusinessLine, at the DefExpo2018.
The facility at Ananthapur will make Radio Frequency Seekers for missiles and the Machilipatnam plant will manufacture new generation electro-optic equipment. Construction has started in the two new plants.
“We are expecting construction to be completed in around 18 months,” he said, adding, “We will use funds from our internal accruals for capex in 2018-19."
Gowtama said for 2017-18, the Bengaluru-based company expects to report revenue of around Rs. 10,000 crore (unaudited), with an annual increase of 13-14 per cent. In the next three years, the growth rate will be 12-15 per cent.
“If Make in India and policy guidelines in defence translates into reality, being a niche electronics company, we may even have a growth rate of around 20 per cent," he said.
Defence constitutes around 85 per cent of revenue and 15 per cent from civilian segment such as electronic voting machines and point of sale machines for public distribution systems and classroom jammer to conduct examinations.
Gowtama added that the company wants to increase contribution from exports to 5-10 per cent of the total revenue even as the company plans to expands its footprint abroad, especially in the Indian Ocean Region.
To begin with, it will set up a marketing office in Vietnam in a month.
At present, exports constitute 2-3 per cent of revenue, he said.