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Bharat Dynamics Ltd.

BSE: 541143 Sector: Engineering
NSE: BDL ISIN Code: INE171Z01018
BSE 09:27 | 30 Jul 415.65 10.90






NSE 09:07 | 30 Jul 409.95 5.15






OPEN 410.00
52-Week high 481.25
52-Week low 280.70
P/E 29.56
Mkt Cap.(Rs cr) 7,618
Buy Price 415.70
Buy Qty 1.00
Sell Price 416.15
Sell Qty 1.00
OPEN 410.00
CLOSE 404.75
52-Week high 481.25
52-Week low 280.70
P/E 29.56
Mkt Cap.(Rs cr) 7,618
Buy Price 415.70
Buy Qty 1.00
Sell Price 416.15
Sell Qty 1.00

Bharat Dynamics Ltd. (BDL) - Chairman Speech

Company chairman speech

On this momentous occasion as BDL enters into its Golden Jubilee year it gives meimmense pleasure in welcoming you all on behalf of the Board of Directors to this 49thAnnual General Meeting of your Company.

I must admit it is my privilege and honour to be a part of this great Company builtover five decades by the dedication commitment and perseverance of the men and womenassociated with the Company since its inception.

It is remarkable to think that in 1970 BDL has started its journey in a modest waywith a single product and today it is evolved into a multi-product multi-unit handlingvaried technologies.

The journey has been long and the milestones many as BDL grew from strength tostrength spreading its customer base across geographies as its products being used both inIndia and abroad. Today BDL has emerged as the one of the leading Defence PSU not onlymeeting the ever changing requirements of our armed forces but also making a significantmark across the globe. It gives us a great sense of fulfilment of having met therequirements of our armed forces.

Fifty years is an achievement by any standards but when one looks at what has beenachieved in this period it gives us a sense of pride.

Before I apprise you on achievements of your company in 2018-19 along with theoperating scenario and the initiatives taken I must say that though it is early days ofmy journey as Chairman and Managing Director of this company I found it very exciting andeventful with "Team BDL" standing firmly behind me and providing me a sense ofreassurance in overcoming the future challenges in taking this company to greater heights.


This year has been a challenging one in terms of performance. The performance of thisyear especially demonstrates the determination and resolute character of our organizationas we could register a reasonably good sales turnover of र 3069 Crore (with a valueof production of र 3235 Crore) under very trying circumstances with overwhelmingtechnical challenges. I would give credit to each and every employee and stakeholder whomade it possible to achieve this target especially under very difficult circumstances. Theslight decline in VOS and VOP should not dampen our spirits as this drawback is mainlycaused by some last minute technical hitches but not due to lack of our efforts. None theless there is every reason to feel sanguine as majority of technical issues are resolvedand your company is back on track and it is poised to get many new projects. I would liketo advice all the employees to work with same determination and strengths and put yourbest efforts and I am certain your company will bounce back with renewed vigour.

Turning to financial performance your company continues its journey in the path ofprofits and continues to pay dividends. I am happy to inform you that your board hasdecided to pay a final dividend of र 30.61 Crore for the year 2018-19 (i.e. at र1.67 per equity share of र 10/-each.)


Indian industry today is on the threshold of entering into a new era where it willassume greater responsibility in making the nation self-reliant in Defence Production.

India's defence industry has been growing at a modest pace for the past few years.Modernisation of the armed forces and indigenisation of manufacturing are the key focusareas. The segment is receiving the much needed push under the Make in India programme.The concept of import substitution is being gradually accepted by stakeholders. This is anopportune time to embark upon a new phase of self-reliance in the sector by manufacturingtechnologically advanced equipment within India. Private sector participation is graduallypicking up. The objective of the Indian defence offset guidelines is to encourage foreignvendors to engage in complete transfer of technology arrangements with Indian offsetpartners. That said the government is set to announce radical changes in the guidelinesto bring in investments in the defence and aerospace segments. Going forward thegovernment plans to substantially step up investments in modernisation of the armed forcesand creation of infrastructure especially in the aerospace and electronics segments. Inthis regard the new Defence Procurement Procedure is expected to speed up the process ofawarding of contracts by the Government.

With the Government of India continues to unveil a host of initiatives to encouragedefence indigenisation your company with its long experience manufacturing expertiseco-development partnership with DRDO labs robust supply chain strong project managementskills and reinforced D&E is poised to benefit and prosper.

The maiden Coffee Table Book on BDL entitled "The Dynamic Decades ofBDL" was released by Dr.Ajay Kumar Secretary (DP) on 25 Jan 2019 at BDLVisakhapatnam Unit. The book depicts the most defining and inspiring moments of thecompany since its in- ception which was in the year 1970.


1) New Orders: I am pleased to announce that your company has bagged orders worthof Rs 2686 Crores excluding Taxes during 2018-19 which includes various types of missileslaunchers test systems and accessories.

2) Projects in Pipeline: In addition I am happy to share that some indents are inadvanced stages of order placement on BDL for which your company top management has beencontinuously pursuing for expediting the order placement.

3) New Partners in pursuit of Technology Upgradation : Keeping in pace withthe current trends in the global defence industry your company is always in pursuit forlatest technologies and in process of continuous tie- ups with major weapon Design &Manufacturing giants around the world. As part of this it has entered into MOUs/ NDAs/LATOTs with various national and international defence players.

4) New Infrastructure: Keeping abreast with changing technologies your company isin constant pursuit of establishing new infrastructure for manufacturing and testinglatest weapons systems. As part of this

i) Established Production facilities for manufacture of Man-Portable Anti-Tank GuidedMissile (MPATGM) at your Bhanur unit which was inaugurated by Dr G. Sateesh ReddyChairman DRDO on 29th Sep 2018.

ii) Acoustic Tank Test Facility one of its kind of the world class test facility usedfor testing underwater weapons like Torpedoes mines Sonobuoys Decoys etc at your Vizagunit inaugurated by Secretary(DP) on 25th Jan 2019.

iii) In House D&E has upgraded its labs by procuring latest equipment and softwaretools including RF Prototyping Software RF Antenna Design Software Opto- mechanicalSoftware DSP tools IP cores Keil Microcontroller tools etc.

iv) A Full-fledged Surface Mount Technology (SMT) line is established in ElectronicsDivision at KBU which enables to take up the in-house assembly of all complex sub- systemslike OBP SCU CGU etc.

5) Technical Breakthroughs: The dedication and hard work of your employees hasachieved significant success and paid rich dividends in terms of technical achievements.

i) Your Company has contributed for the prestigious Anti Satellite Missile (MissionShakti) by developing Reactive Armour System & Control Bay (Electronics Assembly) andtotal Cable Harness.

ii) Successfully associated with MPATGM Guidance flight Trials on 14th &15th Mar 2019 at Pokhran.

6) Quality Systems: Being a missile manufacturing Company quality of the productis of paramount importance and your products should work first time and every time. Hencein pursuance of high Quality Standards all the production Units in all the three unitsare certified with International Aerospace Quality Management Standard AS 9100D. YourInformation Technology Division (ITD) is certified with ISO-IEC 27001-2013 InformationSecurity Management Systems (ISMS).

In addition all the three units have been upgraded to ISO 14001:2015 EnvironmentManagement System (EMS).


The philosophy of your company in respect of corporate Governance is its commitment tovalues ethical business conduct transparency makes appropriate disclosures comply withlaws and regulations.

Your Company has a well established relationships between the company's management itsBoard its shareholders and other stakeholders. Your company with its establishedprocesses and structure through which the objectives of the company the means ofattaining the objectives and systems of monitoring performance are well in place.

Your company is complying to all mandatory provisions of SEBI and other Governmentstatutory bodies relates to Board Composition audit committees Board ProceduresManagement Discussions analysis of Annual reports certification of Financial Statementsinternal controls and Corporate Governance reporting. Quarterly and annual compliancereports on Corporate Governance are being forwarded to MOD in the prescribed format.

Your Company's activities are monitored by several external agencies like StatutoryAuditors Comptroller and Auditor General of India CVC MOD (Dept of Defence Production)etc.

I am glad to convey that your company has been rated consistently as"Excellent" by MOD in the Corporate Governance category which itself is atestimony for its established mechanisms relations regulations and processes by which itis Governed.


Your Company is committed to protecting the environment health and safety of ouremployees customers and the communities where we work and live. The company contributesin all aspects of environment by maintaining a clean and green environment. As part ofthis your company carries out tasks like Effluent water treatment water conservationtree plantation rain water harvesting and landscaping utilizing effluent water.Committees at working level and steering level for handling various types of pollution inBDL are periodically reviewing the status of pollutions and implement necessarycorrective/improvement mechanisms. Your Company strives for continual improvement in ourenvironmental health and safety management systems and in the environmental quality ofour products processes and services.

BDL also recognizes that we have a responsibility to our employees suppliers andpartners and to the communities in which we operate.

Your Company meticulously follows promotion of Industrial Safety health andenvironmental cleanliness and all statutory obligations are complied with. The twocommittees i.e. industrial safety committee which is statutory and Explosive SafetyCommittee are functioning to meet the safety needs of BDL. Safety Committee meetings areheld at regular intervals for reviewing monitoring and upgrading safety health andenvironment as per statutory requirement. The works are carried out in compliance withFactory's act 1948 and Explosive safety strictly adhering to the Storage and Transport ofExplosive Committee (STEC) regulations. Clean surroundings Green Environment stringentPollution Control measures zero effluent discharge energy conservation systematicmanagement and disposal of hazardous wastes etc have become a part and parcel of ourregular well-established environment management system.

All the three productions units are awarded with IS14000 environmental quality standardis a testimony for the above.


Customer demands are increasing with the rapid onset of technological innovation.Present day demands that Organizations proactively seek to know about the requirements ofservices and accordingly work towards the same.

Accordingly Your company has considerably strengthened its product support Departmentfor effective customer suppot. Exclusive retired service officers are being recruited forensuring that the required support is reached the customer well within the committeddowntime. Your company is in the process of establishing support teams at importantlocations in the close proximity of the customer i.e at base level depots or maintenanceworkshops of armed forces. Teams from D&E and production divisions regularly travel tothe User locations to understand their requirements and to resolve their issues. Yourcompany is also proposing to establish seamless communication channels with customers byinstalling latest electronic support equipment like Chatbots / Intelligent VirtualAssistant by using latest technologies like Artificial Intelligence (AI). This enableseffortless conversations through voice or text So you can offer more choices more self-service and consistency across channels to achieve customer care excellence. Regularinteractions with customer reps are organized by way of periodical meetings for getting toknow their requirements and monitoring the progress.


Your Company considers its vendors as partners in progress and believes in establishingmutually beneficial relationships. Our Vendors are our valued partners in our businessdevelopment and we shall work with them in a spirit of mutual co-operation to meet ourbusiness objectives.

Corporate Commercial Department identifies the vendors rates the vendors based onfeedback received based on different parameters like Quality Delivery time and Quantityetc.

Your company is perhaps the first one to organize AS9100D an internationalairworthiness quality certification training for its vendors as part of vendordevelopment. Your company believes in hand holding our vendor partners in terms oftechnology transfers establishment of facilities sharing our infrastructure whereverneeded etc.

Vendor Meets are conducted by individual divisions and by Corporate CommercialDepartment in order to have clear transparent and common understanding and therebyensuring level playing field to all.


Your Company has a healthy and consistent order book of Rs 7258 Crores as on 01stApril 2019. Though there was a slight concern about the dip during 2018-19 as I have toldin the beginning that your company is back on track resolving the bottlenecks it had. Inaddition there is every reason to feel sanguine about the future as many projects whichare identified for BDL are in different stages of allocation. Your company is activelypursuing with the Ministry for clearance of these projects which will strengthen ourOrder book in coming years.

In the years to come your company will be primarily focussing in the following areas:

• Optimization of existing production lines

• Maximizing the geostrategic reach by increasing the export and indigenization.

• Co-development with design agencies for new projects.

• Offset projects

• Upgradation through innovation of its products.

As part of the focus in above areas following initiatives were taken by your company.

i) Engaged in Co-Development Programmes of DRDO.

ii) It is entering into new domains and is in the process of developing infrastructurefor manufacture of seekers.

iii) Your company is also under discussions with various foreign OEMs to get newtechnologies.

iv) It has significantly strengthened its in-house R&D by inducting professionallyqualified personnel from premier institutions like IITs and NITs.

iv) Your company is progressing well in its in-house R&D efforts of developing athird generation anti-tank guided missile Amogha-III for which top management is totallycommitted. Though the path ahead in completing may have challenges I am confident yourcompany with its grit and determination will overcome and come out with your own in-housedesigned developed and produced missile.

v) In addition your company is putting up its determined efforts towardsindigenization of ATGM's with the objectives of self-reliance import substitutionForeign Exchange savings and overall cost reduction.

Moreover Government's continuous thrust for initiatives like Make in Indiaindigenisation and import substitution will provide ample opportunities and your companywith its decades of experience under its belt will exploit maximum advantage

Based on the order book position anticipated orders and above mentioned initiatives Iam quite confident that your company is well poised for a sustained growth.


Corporate Social Responsibility (CSR) is interwoven in the business model of yourCompany. The Company's CSR efforts endeavour to support the less privileged rural andurban communities with a focus on sections of the vulnerable and marginalised localcommunities that live in close proximity to its manufacturing facilities in semi-rurallocations. Your company has taken various steps for fulfilment of its socialresponsibilities under CSR activities by adopting villages development of aspirationaldistricts Swacha Bharat Skill development etc. Your company has carried out theseactivities by spending approximately Rs. 16 crores during the last year.

BDL is committed to contribute actively towards enhancing their living standardsthrough its CSR interventions in water and sanitation health education and skilldevelopment. Your Company continues to take forward its good work in backward/underdeveloped areas in Andhra Pradesh and Telangana as part of its CSR activities.

For Further details on CSR activities please refer to Page No. 37.


I offer my profound gratitude for the whole- hearted dedication cooperation and hardwork of its employees encouragement received from its esteemed customers (the threeservices and their inspectorates) support from vendors Technology Development and handholding from DRDO guidance from the Ministry of Defence Government of India. We trulyvalue your continued patronage.

I wish to thank the Principal Director of Commercial Audit and Ex-Officio Member theStatutory Auditors of the company and Audit Committee of the board for the valuable adviceand cooperation extended by them.

I am confident that with continuous dedicated efforts commitment and hardwork yourcompany shall march forward to achieve greater heights and will become a billion-dollarcompany in the coming few years.

I convey my sincere thanks to my colleagues on the Board for their counsel and support.

Finally I would like to take this opportunity to thank all the shareholders for theirtrust and support and solicit continued support to fulfill your expectations.

Thanking You Jai Hind!!!
Cmde Siddharth Mishra (Retd)
Chairman and Managing Director
DIN 08367035