BEL sets up biz unit for naval sonar systems

With an eye on a substantial portion of business from the Indian Navy and defence offset business opportunities, Bharat Electronics Limited (BEL), the Bangalore-based public sector defence major, has set up a strategic business unit (SBU) for the manufacture of fire control systems and sonar systems for the Indian Navy, at its Bangalore complex. This is the 17th SBU of BEL and 8th in Bangalore.

“We have split our existing SBU for naval systems into two units. While the first unit will make products and systems like radars and sonars among others, the second unit will be for fire control systems. Each unit will be managed by a general manager,” Ashwani Kumar Datt, chairman and managing director, BEL said.

BEL has an order book of Rs 4,000 crore from the Indian Navy and the Naval SBU is witnessing a growth of 15-20 per cent annually. In the remaining two months of the present fiscal, BEL is expecting to get an order worth Rs 450 crore from the Indian Coast Guard for the supply of coastal surveillance equipment, he told Business Standard.

BEL will supply equipment to about 46 strategic locations across the Indian coastline will be covered in the order. BEL has just finished setting up a prototype off the coast of Gujarat to strengthen Coastal Surveillance Project for the Indian Navy and Coast Guard. This project has gained interest following the last year’s terror attack on Mumbai.

He said one unit would look at radars and sonars for Navy, and other group will primarily look after fire control systems like the advanced Naval Gun Fire Control System for the P-28 class of ships for the Navy delivered at a function on Tuesday. These SBUs will work as profit centres to accelerate deliveries to the Navy and shipyards, and after some experience, the detailed business plan will be worked out for each of them, he said.

The strategic business unit for fire control systems has an order book of Rs 1,200 crore and will service orders from the Indian Navy, Coast Guard and others like exports.

Presently, the naval SBU services a $22 million order as part of the defence offset business to an Italian firm. The order includes supply of commandant control radars and communication system and electronic warfare equipment for the fleet tankers from an Italian firm, Finncanteri. The deliveries have started and will be completed in the next two years, he said.

BEL has also set up a manufacturing facility within the new SBU to manufacture digital flight control computer for the light combat aircraft (Tejas), at an investment of Rs 8 crore.