Your company has signed a Memorandum of Agreement (MoA) with IAF fordevelopment of NATO origin countermeasures under "Make in India" Category II.These would replace East European countermeasures and adapt to NATO CMDS (Counter MeasureDispensing System) which were developed by Bharat Dynamics Limited
Welcome to the annual report of your company for the year 2020-21!
As per the Union Budget for the financial year 2020-21 the totalallocation for Defence is around USD 62.85 Bn. Around 1/4th of this amount is allocatedfor capital expenditure. Besides the government's push to promote indigenous defencemanufacturing is evident in the Defence Acquisition Procedure 2020 which prioritisescapital acquisitions from domestic players over foreign ones. The Ministry of Defence hasnotified two "Positive Indigenisation lists" dated 21st August 2020 and dated31st May 2021 of total 209 defence items to be indigenized in phases.
The opening of the Defence sector for private sector participation hasbeen helping foreign Original Equipment Manufacturers (OEMs) to enter into strategicpartnerships with Indian companies. This enables them to leverage the domestic markets aswell as aim at global markets as a global sourcing partner. Besides helping in buildingdomestic capabilities it will also bolster exports in the long term thereby increasingthe forex inflow.
Giving a boost to the mining sector especially commercial coal miningand bringing in reforms to attract more investment into the sector is the direction takenby the government in its announcements intended to revive the economy following thepandemic. According to CIL in the next five years it's going to open 55 new coal minesand expand at least 193 present ones.
Favourable government policy promotes self-reliance indigenisationand technology upgradation. The policies also aim at achieving economies of scaleincluding the development of capabilities for exports in the defence sector.
In the light of large-scale disruption inflicted by the pandemic on thecrucial sectors of the economy the government announced wide-ranging measures under theAtma Nirbhar Bharat economic stimulus package. We are enthused by the positive impact thatthese programmes will have on the defence and power sectors the two primary customersegments of your company.
Stepping into FY20-21 we are excited at the opportunity to contributeto India's defence readiness. I am happy to share some of the noteworthy developments:
Trial runs at Katepally unit for propellants for BrahMos and Pralaymissiles.
Trial runs of multispectral flares for the Indian defence forces.
Productionization of Astra BrahMos LRSAM MRSAM and other missiles /rockets.
Your company bagged an order of substantial value from IAF for supplyof countermeasures.
To meet the requirement of smoke generators signalling flares andIdentification of Friend and Foe (IFF) flares your company has developed different colourcompositions and supplied to Indian Navy and paramilitary forces.
Your company has signed a Memorandum of Agreement (MoA) with IAF fordevelopment of NATO origin countermeasures under "Make in India" Category II.
These would replace East European countermeasures and adapt to NATOCMDS (Counter Measure Dispensing System) which were developed by Bharat Dynamics Limited.
On successful trials and acceptance by IAF your company foresees to beself-reliant and fulfil countermeasures requirements of IAF.
Your company entered into a technology transfer agreement with ThorimbaLimited for manufacture of ammunition in India.
Modernization of the armed forces and indigenous manufacturing haveemerged as focus areas including the 'Make in India' program. This is an opportune timeto embark upon a new phase of selfreliance in the defence manufacturing withtechnologically advanced processes within India.
On commercial explosives front while the total production of coal inIndia remained stagnant the push for making India self-reliant on coal is a positive signfor the coal mining industry. A number of structural reforms have been initiated tofacilitate the increased production of coal including an auction of 41 coal minesinviting participation of private players.
I take this opportunity to express my deep gratitude to everyindividual who has contributed to our journey in their capacity as a stakeholderemployee shareholder banker customer and partner.