BEL has been substantially investing around 8% of its turnover on R&D annually and is planning to increase to 10% progressively in the next 3 years.
A new Product Development & Innovation Centre for developing common sub-systems and futuristic products is being set up at Bangalore with an investment of about Rs.500 crores.
BEL is also investing on select R&D projects through collaborative efforts with niche technology companies.
Export of BEL products and services
BEL achieved the highest ever export sales of USD 57.85 million in 2014-15, registering a growth of 37.7% over the previous year’s export turnover of USD 42 million. The export sale for the year 2015-16 is expected to surpass the targeted USD 65 million and touch about USD 80 million.
BEL is focusing on opportunities in the areas of Offset obligations of vendors in various RFPs of the Ministry of Defence. The focus is on ‘Build to Print,’ ‘Build to Spec’ and ‘Buyer Nominated Equipment.’ BEL has signed MoUs with many foreign companies and is working with major Aerospace and Defence companies to establish long-term supply chain relationships. BEL is also pursuing possibilities to export products and systems to friendly countries with the approval of MoD. Currently, the Coastal Surveillance Systems, Naval Air Surveillance Radars, Sonars, Night Vision Devices and Electronic Voting Machines are being promoted to South East Asian, Middle East and African countries.
The long-term export plan of BEL is to reach sustained export sales to total sales turnover ratio of 10% from the current level of 5.3%.
Financial health of BEL
BEL is a continuously growing premier Defence Electronics Navratna company and has been making profits consistently. BEL has been sharing its monetary growth with consistent dividend payouts to its shareholders. BEL has also recently concluded a successful bonus share issue with the shareholders. The company is able to meet the incremental working capital requirements and investments towards capacity expansion and modernisation from internal resources.
The effective and efficient funds management has helped the company to retain the highest rating by ICRA for both short term and long term sanctioned bank limits.
In 2014-15, BEL achieved a turnover of Rs.6,695 crores, registering a growth of 8.43% with PAT of Rs.1,167 crores. The PAT to Turnover ratio of the company is in the range of 15 - 18% in last 5 years. BEL has got a healthy order book and also good order inflow projections for the next 2-3 years.