 "Premier engineering concern Bharat Forge has broadened its revenue streams by entering new non-auto segments and markets, resulting in the share of the auto business dropping to 58 per cent in the financial year 2024 (FY24) from 80 per cent (FY07). I")
Bharat Forge has emerged as the lowest bidder for an estimated Rs 6,000 crore contract to supply Advanced Towed Artillery Gun Systems to the Indian Army. This indigenous artillery system, developed by the Defence Research and Development Organisation, marks a significant step toward self-reliance in defence manufacturing.
Under the proposed contract, Bharat Forge is expected to receive 60 per cent of the order, with the remaining 40 per cent allocated to Tata Advanced Systems Ltd, provided it matches Bharat Forge's bid price.
Competitive bidding and allocation
The commercial bids for the acquisition of 307 ATAGS units were opened recently, with Bharat Forge emerging as the lowest bidder after a thorough review process. According to procurement guidelines, Tata Advanced Systems Ltd, a key development partner for the ATAGS project, will have the option to secure 40 per cent of the order if it agrees to match Bharat Forge’s pricing.
The ATAGS have undergone rigorous testing by the Indian Army across various terrains, including desert environments and high-altitude regions in Sikkim. These trials, which included sustained firing tests and performance checks at altitudes exceeding 13,000 ft in sub-zero temperatures, confirmed the system’s operational readiness. The ATAGS, which serve as a modern replacement for the Bofors towed guns, have already achieved export success, with Armenia among its first international buyers.
Indian Army’s push for next-generation artillery
In addition to the ATAGS acquisition, the Indian Army has issued a tender to procure next-generation artillery systems that will be fully designed, developed, and manufactured domestically. Initially, the Army plans to acquire 400 of these advanced gun systems, with the potential for further orders to replace aging equipment.
India’s defence manufacturing sector has shown increasing interest in artillery contracts, with companies such as Larsen & Toubro, Bharat Forge, and Tata Advanced Systems Ltd expected to be key competitors. Notably, Larsen & Toubro, which has supplied the K9 Vajra self-propelled guns to the Army, is expected to participate in future bids. The upcoming artillery systems are expected to feature advanced 155mm/52 calibre guns that will be lighter and more versatile than the existing ATAGS models, enabling greater adaptability in diverse combat situations.
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The ATAGS deal highlights India's move toward defence self-sufficiency and the growing role of private defence manufacturers in equipping the Indian armed forces with advanced indigenous technology. With ongoing tenders for next-generation artillery, the sector is set to witness increased innovation and competition as the Army modernises its artillery arsenal.
(With agency inputs)
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