Bharat Forge is moving forward on its plan to transition the entire defence vertical into subsidiary Kalyani Strategic Systems, which bagged a licence for perpetuity from DPIIT to manufacture various defence products, the company informed stock exchanges on July 31.
KSSL will be manufacturing defence products at its Jejuri unit in Maharashtra. Approval from Department for Promotion of Industry & Internal Trade (DPIIT) enables KSSL to participate in potential defence programs in the future, Bharat Forge said.
KSSL has already been collaborating with overseas partners for export order worth $155.5 million. In August last year, KSSL exported India's first indigenously designed, developed and manufactured artillery system and has secured multiple orders for ammunition shells that have filled up its capacity for the next 2-3 years.
Defence as a Critical Pillar
Bharat Forge has been relying on orders relating to the defence vertical to ramp up the orderbook and turnover. In FY24, the company bagged close to Rs 4,500 crore worth of defence orders out of a total order wins of Rs 6,300 crore. As a result, the defence revenue grew four-fold in FY24 to Rs 1,561 crore, with more than 90 percent of this meant for exports. The company had earlier informed investors that the strong order pipeline has ensured earnings visibility for the next three years.
"We are now building the capability to manufacture over 250 guns and 1,000 vehicles per annum. Our manufacturing ecosystem will be structured to exceed this capacity should the demand rise", the company shared in its annual report earlier in July.
The Atmanirbhar Push
In FY24, India's defence production touched Rs 74,739 crore, with private companies contributing 22 percent of the total production, valued at
Rs 16,411 crore.
Defence exports rose to Rs 21,083 crore in FY24, clocking a growth of 32.5 percent compared to the previous fiscal.
Progressively, the Defence Ministry is targetting an over three-fold growth in production to Rs 3 lakh crore and aims to double exports to Rs 50,000 crore by FY29.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
