bharat electronics ltd share price Management discussions

(A) Industry Structure and Developments, Strengths, Weaknesses, Opportunities and Threats, Major Initiatives undertaken and planned to ensure sustained Performance and Growth: (a) General outlook of the economy, industry in which the Company operates, Government Budget, particularly the Defence Budget, market conditions and how these impact the Company, measures taken / action plan to protect the interest of the Company

In the third decade of this millennium, at least three economic shocks have hit the global economy since 2020 with the pandemic-induced contraction of the global output, followed by the war situation witnessed by the world where giant global powers appear to be stacked against each other leading to a worldwide surge in inflation, and synchronised policy rate hikes by central banks across the economies in a bid to curb inflation. Indian economy, however, appears largely unscathed by the impact of these economic shocks. The Indian economy, after manifesting initial signs of sluggishness, appears to have moved on after its encounter with the pandemic, staging a turnaround in FY 2021-22 ahead of many nations and positioning itself to ascend to the pre-pandemic growth path in FY 2022-23.

The FY 2022-23 so far for India has reinforced the countrys belief in its economic resilience. The economy has withstood the global economic challenges while maintaining its growth momentum in the process. The forecast by the National Statistical Office (NSO), growth of the Indian economy broadly lies in the range of 6.5-7.0% in FY 2022-23 which is higher than almost all the major economies and even slightly above the average growth of the Indian economy in the decade leading up to the pandemic.

Even as Indias outlook remains bright, global economic prospects for the next year have been weighed down by the combination of a unique set of challenges expected. The Economic Survey 2022-23 projects a baseline GDP growth of 6.5% in real terms in FY 2023-24, which is broadly comparable to the estimates provided by other agencies such as the World Bank, IMF, RBI, etc. The actual outcome for real GDP growth will probably lie in the range of 6.0% to 6.8%, depending on the trajectory of economic and political developments globally.


Defence allocation for the FY 2023-24 has been increased to 5.94 Lakh Crore which is about a 13% increase compared to the previous year. The capital allocation, which relates to the modernisation and infrastructure development of the Armed Forces has been increased to 1,62,600 Crore in FY 2023-24 from

1,52,370 Crore in FY 2022-23, with an increase of 6.7% over the previous year.

To further foster innovation, encourage technology development and strengthen the defence industrial ecosystem, innovation (iDEX) and Defence Testing Infrastructure Scheme (DTIS) have been allocated 116 Crore and 45 Crore respectively representing an enhancement of 93% for iDEX and 95% for DTIS over 2022-23.

However, the Ordnance Factories (OFs), which the government has converted into seven corporate entities, have seen an overall decline in their shares in the Budget.

Ministry of Defence (MoD) has taken numerous steps to achieve ‘Aatmanirbharta in defence and Positive Indigenisation Lists is one of the landmark initiatives towards achieving that vision. The MoD had earlier promulgated First, Second and Third Positive Indigenisation Lists comprising 310 items. The ‘Fourth Positive Indigenisation List of 101 items was announced in Oct 2022, which will provide continuous impetus towards self-reliance in defence.


Apart from its core Defence business, BEL has ventured into several non-Defence areas like Homeland Security, Smart City, Energy Storage Products, Solar, Space Electronics, Network & Cyber Security, Railways & Metro Solutions, Medical Electronics & Healthcare Solutions, and Software Solutions, etc.

Homeland Security

The Homeland Security market in India is spread across Central / State Governments, government entities including PSUs and private sector organisations. A significant market opportunity exists in police modernisation, critical infrastructure protection, border management, counter terrorism, urban area security, ground transportation, port & maritime security, etc.

Prevailing internal security concerns due to terrorist activities & crime, data thefts, remote monitoring needs for centralised command & control, asset protection & disaster management, growth in public infrastructure, increased IT spending, and increase in security spending are boosting demand for the Homeland Security market in India.

In the FY 2023-24, the Ministry of Home Affairs (MHA) has been allocated 1.96 Lakh Crore, with an increase of 1.1% over the revised estimate of 1.93 Lakh Crore for 2022-23. Of the Ministrys total budget, 65% of expenditure is on police, 31% on grants to UTs and 4% on other items such as disaster management, rehabilitation of refugees and migrants, and conducting the census.

In the FY 2023-24 Budget, 1.27 Lakh Crore has been allocated towards police in comparison to 1.17 Lakh Crore in 2022-23. Central Reserve Police Force (CRPF) which is primarily responsible for internal security has been allotted 31,772 Crore in 2023-24 in comparison to 29,325 Crore in the previous year. Central Industrial Security Force (CISF), which protects vital installations like nuclear projects, airports and metro networks, has been given 13,215 Crore in 2023-24 in comparison to

12,202 Crore previous year.

Smart City

The Smart Cities Mission (SCM) was launched in June 2015 as a Centrally Sponsored Scheme (CSS) with the objective to provide a decent quality of life to citizens in cities, through deployment of ‘smart solutions, and improvement in the core infrastructure. The Mission was originally planned till March 2022 but has been extended till June 2023.

Allocations for SCM decreased by 9% from 8,800 Crore in FY 2022-23 Revised Estimate to 8,000 Crore in FY 2023-24 budgeted estimate. Cumulatively, 45,915 Crore has been allocated for SCM till FY 2023-24, which accounts for 96% of anticipated GoI funds for the Mission. So far 64% of the projects had been completed.

Additionally, City Investment to Innovate, Integrate and Sustain (CITIIS), a new initiative under SCM has seen an increase in total allocation by almost 10 times between its initiation in FY 2018-19 and FY 2023-24.

The Strategic Business Unit which was formed exclusively to address the Homeland Security and Smart City business has made significant achievements in the Homeland Security and Smart City domain.

Energy Storage Products

Continually rising ozone-harming Green House Gas (GHG) discharges have forced nations and organisations to take focussed time-bound measures for the adoption of clean and renewable energy.

As per market reports, the global battery energy storage system (BESS) market is projected to grow from US$ 10.88 Billion in 2022 to US$ 31.20 Billion by 2029, exhibiting a CAGR of 16.3% during the forecast period.

Government of India (GoI) notified Phase-II of Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME India) with budgetary support of 10,000 Crore for a 5 year period commencing from 1 April 2019. The scheme has supported approximately 10 Lakhs electric vehicles till end of March 2023 by way of demand Incentive amounting to about 4,500 Crore.

The Government has also approved the Production Linked Incentive (PLI) Scheme, ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage for achieving manufacturing capacity of 50 GWh of ACC for enhancing indias manufacturing capabilities with a budgetary outlay of 18,100 Crore. The scheme incentivises local value addition for battery storage manufacturing ecosystem in India and also discourages the import of components, through increased duties etc.

BEL is addressing the energy storage system requirement of strategic applications (including defence) and included the EV segment among its focussed markets. BEL has acquired technology from DRDO for high capacity Lithium-ion cells for strategic applications and set up a production facility. BEL is also exploring the adoption of hydrogen fuel cell-based technologies for commercial manufacturing in partnership with potential technology partners.

Solar – Renewable Energy

The Government has set an ambitious target of generating 280 GW of installed solar capacity by 2030. In the Budget for the FY 2023-24, the government has allocated 5331 Crore for the solar power sector including grid and off-grid projects. This is about 54% increase compared to previous years of 3,365 Crore allocations.

BEL has scaled up its operations from Cell/Module manufacturing to execution of solar power plant projects under the Engineering Procurement Construction (EPC) / Developer mode. BEL has created a new Micro SBU for a focussed approach to address the solar business, which is likely to contribute to BELs business on a continuous basis in the near future. BEL has set-up a solar power plant using solar modules made up of Bifacial solar cell technology as experimental basis.

During the year, BEL signed an MoU with NHPC for exploring various possibilities for jointly setting up of Solar Manufacturing unit.

Space Electronics

ISRO has opened up opportunities for manufacturing of launch vehicles and small & micro satellites, for the Indian industry. ISRO has ambitious plans to increase the number of satellite launches on an average of about 18 satellites per annum from the FY 2023-24 onwards. Commensurate with the plans of ISRO, the Department of Space has been allotted a budget of 12,544 Crore for the year 2023-24, which is slashed by 8% from the FY 2022-23 Budget. Out of this, 11,699 Crore has been earmarked for projects under various heads. This clearly indicates Indias commitment to the development of its space programme. In addition to this, ISRO has approval for the launch of 30 PSLVs and 10 Geo Synchronous Satellite Launch Vehicles (GSLVs) in the next three years.

BEL is one of the major players in the ground segment of satellite communication and desires to enter into space electronic, manufacture of satellites, payloads for satellites, satellite communication services and address launch vehicle segment jointly with the Indian private industry. BEL has long-term objective of becoming a prominent player in Space Based Assets and Payloads. BEL also expressed its interest for participation in productionisation of satellites and Small Satellite Launch Vehicle (SSLV) with support from ISRO.

BEL has qualified as an industry partner of ISRO for the Assembly, Integration and Testing (AIT) of satellites. It has completed Satellite AIT of three RISAT satellites at ISRO. BEL has collaborated with ISRO and has come out with new products like the next-generation Indigenous Receivers for Positioning and Navigation (IRNSS), Satcom Terminals, LTCC-based Substrates and high power space TWTs, which have a usage in defence, Government services and paramilitary applications. BEL is jointly working with ISRO for the supply and commissioning of various types of Satellite networks and HUBs for satellite communication applications. BEL has plans to establish manufacturing facilities for LEO satellites as well as space-based payloads for defence space related projects.

Network and Cyber Security

The cyber security market in India which is driven by investments by organisations to safeguard against cyber threats is expected to grow to about 29,116.00 Crore by 2027. The global Cyber Security market is expected to reach about US$ 366 Billion by the year 2028.

The Network & Cyber Security (NW&CS) division has made key progress during the year in implementing a sizeable amount of cyber security business such as Security Analytics Centre (SAC) for Govt. agencies, Data-diode solutions, PKI and associated services for defence forces, security services for banking/Govt. agencies, secure rugged laptops, Next generation firewall systems, Security Operation Centre (SOC) for PSUs, etc.

The Network & Cyber Security division is also vigorously pursuing current technologies like quantum key distribution, block-chain, digital forensic, remote Voting, IoT Security etc. in collaboration with several start-ups, OEMs, Channel partners and academia.

Railways and Metro

Indian Railways has prepared a National Rail Plan for India 2030. To enable Atmanirbhar Bharat and the Make-In-India initiative, the plan is to create a future ready railway system by 2030, bringing down the logistic cost for Indian industries. A special thrust on promotion of Digital India and adoption of emerging technologies, including 5G, AI, ML and Drones.

The total capital expenditure by Railways for the FY 2023-24 is projected at 2,65,000 Crore, an increase of 9% over the revised estimates of 2022-23. Indian Railways is planning to redevelop 400 stations across 100 cities. The program has an outlay of over One Lakh Crore. Induction of 400 new Vande Bharat trains in the next 3 years. For metro, the total budget of the financial year 2023-24 is 19,518 Crore.

In this segment, the modernisation and new projects like National Common Mobility Card (NCMC) compliant Automatic Fare Collection (AFC) Gating system for Metros, Indian Computer-based Train Control/Intelligent Automatic Train Supervision (i-ATS), Rolling Stock Driver Training Simulator, Real Time Information System (RTIS) for Indian Railways, Supervisory Control And Data Acquisition (SCADA), CCTV Radios, Video Surveillance Systems, FOG Vision, LTE-based Mission Critical Communication Networks for the Railways, Unmanned Railway Crossing System, Composite Panels for Rail and

Metros, Platform Screen Doors etc., are some of the key areas being pursued by BEL.

BEL is collaborating with DMRC, RDSO, NCRTC and various public/private organisations in the area of i-ATS System, Mission Critical Communication System, Composite Panel, Platform Screen Doors, etc. The NCMC-compliant AFC gating system executed by BEL, will be implemented across all modes of transportation i.e. metro, trains or buses in a phased manner.


As per the reports, the global composites market size is projected to grow to US$168.6 Billion by 2027, at a CAGR of 8.20%. The future of the Indian composites market also looks promising with opportunities in pipe and tank, aerospace and defence, wind energy, electrical and electronics, construction, transportation, marine and telecommunication. The Indian market is expected to reach an estimated US$ 1.9 Bn by 2026 with a CAGR of 16.3%. The Composites market is growing due to the rising demand for lightweight, high-performance solutions across industries.

BEL is planning to address the composites structures requirements of shipyards, submarines, aero structures, Railways & Metros, land equipment, pressurised missile containers, high altitude enclosures etc. BEL has set up facilities for the same and has also tied up with Government labs/Academia for consultancy and development of composite structures.

Civil Aviation

As per reports, the global domestic aviation market is expected to reach US$ 1,130.8 Billion by 2027 at a CAGR of 3.2%. The aircraft passenger traffic in India is estimated to reach 520 Million by 2037, and airline operators are projected to increase their fleet size to 1,100 aircraft by 2027. Indias aviation industry is expected to witness 35,000 Crore investments in the next four years. The Indian Government is planning to invest US$ 1.83 Billion for the development of airport infrastructure along with aviation navigation services by 2026. This includes investment in air traffic management, airport ground infrastructure, other Modernisation activities, etc. The AAI has earmarked a sum of 25,000 Crore for a period of five years, for modernising 100 airports across the country.

To enable Aatmanirbhar Bharat and Make-In-India initiative, BEL is collaborating with M/s Airports Authority of India for modernisation of Airports, providing solutions for air traffic management, other ground & navigation solutions, etc.

Towards this, BEL in association with AAI, has developed indigenous Automated Air Traffic Management System (ATMS) and Advanced Surface Movement & Guidance Control System (ASMGCS) solutions which have been deployed at Bhubaneswar Airport and are under exploitation and validation.

BEL is also exploring partnerships with global OEMs in the civil aviations segment for indigenisation of systems and solutions required for modernisation of Airports and ground infrastructures.


Defence Technology is transiting from Platform-centric warfare to Network-centric warfare. Amidst this transition, the software is becoming a crucial piece of weaponry in the modern Defence system. Advance software systems and embedded software technologies play a vital role in modern warfare and transforming every aspect of product offerings.

India is one of the leading software development centres in the world and the Indian IT industry is growing at a CAGR of 10.71%. As per reports, the Indian IT industry, comprising software products, IT services, engineering and R&D services, ITES/BPO, hardware and e-commerce is expected to grow to US$350 Billion by 2025.

The Software SBU of BEL is handling multi-disciplinary projects/programmes which require cutting-edge technologies. The SBU is catering to the in-house software requirements and is also exploring & addressing opportunities in both domestic and export markets.

Apart from core Defence segments, opportunities with respect to Homeland Security, e-Governance projects, smart cities, digital transformation projects, healthcare, software simulators, software assurance services, ERP implementation, and digital agriculture, are also being focussed. During the year, BEL has started a Software Development Center at Vizag to cater for the software services and support activities.

Medical Electronics & Healthcare Solutions

The medical electronics market globally is expected to reach over US$ 795 Billion by 2030. Indian medical electronics market is expected to grow to US$ 25 Billion by 2025 at 17% CAGR.

After successfully manufacturing 30,000 ICU ventilators and around 18,000 Oxygen Concentrators, during the pandemic, BEL has taken firm steps towards diversifying into the medical electronics & healthcare segment. One of the objectives of your Company is to enter into this market segment and introduce affordable healthcare products/solutions to urban & rural populations in India and achieve Atmanirbharta in this segment.

To quickly grow in this segment, a few niche products, indigenously designed by Indian companies, have been identified which can be manufactured at BEL through a ToT. Your Company is also planning to come out with its own products for futuristic markets, either through in-house effort or through a collaborative R&D approach. With these approaches, your Company is planning to produce Haemodialysis machines, portable remote patient health monitoring systems, patient monitoring system for ICUs, Urine Albumin detection system, C-Arm X-ray machines, Ultrasound, turbine-based ventilators, MRI, etc.

Focussed approach for new areas in Defence

To give a focussed approach to upcoming areas in defence & aerospace sector, BEL has ventured into Unmanned Systems, RF and IR Seekers, Missiles, Rockets, Glide Bombs, Arms & Ammunitions.

Unmanned Systems

The UAV Market is projected to grow from US$ 26.2 Billion in 2022 to US$ 38.3 Billion by 2027, at a CAGR of 7.9%.

The Unmanned Underwater Vehicles (UUV) market is estimated to be US$ 3.5 Billion in 2022 and is projected to reach US$ 7.4 Billion by 2027, at a CAGR of 16.0%. The Unmanned Ground Vehicles (UGV) market is estimated to be US$ 2.7 Billion in 2022 and is projected to reach US$ 3.6 Billion by 2027, at a CAGR of 5.7% from 2022 to 2027. The Unmanned surface vehicles (USV) market is estimated to be US$ 0.77 Billion in 2023 and is projected to reach US$ 1.2 Billion by 2027, at a CAGR of 11.1% from 2022 to 2027.

BEL has been addressing the UAV/UGV/UUV/USV requirements of the Indian Defence/Non-Defence segments by partnering with DRDO/foreign OEMs/ Indian Academia/Start-ups, etc. BEL has also been working on the Payloads (like EO, Communication, ESM, etc.), Data Links and Ground Control Station requirements of the UAVs.

To address the unmanned systems business opportunities in a focussed manner with dedicated resources, a separate business vertical has been created at BEL Bangalore. The vertical is building its capabilities through in-house development as well as through partnerships to gain inroads into the unmanned systems business.

RF and IR Seekers

The global missile seekers market size is projected to grow to US$ 6.8 Billion by 2026, at a CAGR of 5.2% by 2026. The main drivers for the global growth of this segment are the geo-political instabilities, change in warfare strategies, advancement in missile seeker technologies and miniaturisation, depletion of stocks, increasing defence budgets of emerging economies, etc.

The domestic demand for this segment got a major boost with issuance of a series of positive indigenisation lists by MoD, GoI wherein all strategic missile systems are included for domestic manufacturing in a phased manner. With major strides in indigenous missile systems development by DRDO, the domestic defence industry will have a major role and opportunity for absorption of technology and production in the years to come. BEL is associated with DRDO during various phases of development for technology absorption, engineering and productionisation of RF and IR seekers. BEL is continuously investing for creation of necessary infrastructure for mass manufacture of the seekers to meet the required demand. BEL is also working with the services to explore refurbishment and life extension of armament in this segment.

Missiles, Arms & Ammunition

Arms & Ammunition including smart weapons are critical for the strategic needs of the country for which self-reliance has to be ensured. For long, the Services were dependent on imported arms/weapons. GoI/MoD through major policy initiatives for Make-In-India such as indigenisation of ammunitions, positive indigenisation list, Make-II, etc., is offering huge opportunities to domestic defence manufactures including BEL.

As per the reports, the global arms and ammunition (including small arms, smart weapons) market, is projected to reach $ 37.71 Billion by 2030.

BEL is engaged in development and also partnering with DRDO, technology partners, academia, R&D institutes, start-ups etc. for development of missiles seekers, glide bombs, rockets, ammunitions, electronic fuzes and its related parts. BEL has made substantial investments in creating facilities for processing/hot integration and several storage magazines with all necessary regulatory licenses and approvals.

(b) Industry Structure and Developments

At present, India is one of the largest importers of defence equipment with majority of its defence needs being met through imports, though Indias arms imports have decreased in the recent years, as per the reports. The Government of India aims to develop a strong self-reliant domestic industry in the defence sector with substantial participation from the private sector, including MSMEs and start-ups to reverse the trend of imports.

In this regard, the Government has taken several initiatives like the Make-In-India programme, creation of an eco-system for the development of technologies through innovation by MSMEs / start-ups, etc. With the support of the Government, the Indian industry is expected to move up in the value chain and deliver quality products, systems and services to the defence forces. The Government has promulgated a draft defence production policy that aims at increasing defence production to 1,70,000 Crore by 2025.

The MoD has introduced the Strategic Partnership (SP) model for the Indian private sector, as part of the DPP 2016. The model aims to progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon systems and platforms.

The Defence Acquisition Procedure 2020 (DAP 2020) has incorporated several improvements focussing on self-reliance, wherein indigenisation and innovation are enabled through processes of making, design & development and strategic partnership. Import substitution has been facilitated through various schemes with the aim of reducing lifecycle costs and building a robust ecosystem with the help of the domestic industry/ MSMEs. Amendments to DAP-2020 are underway, in order to further simplify the Make-I and Make-II procurement process, inclusion of Space activities, etc.

To promote indigenous defence manufacturing, the Government has undertaken initiatives like liberalisation of industrial licensing, development of Defence Corridors, funding for Innovation in defence and aerospace through iDEX / DIO, continuous updation of DPP, thrust on exports, etc. Suo moto proposals can also be submitted under the Make-II category.

Foreign Direct Investment (FDI) up to 74% is allowed through the automatic route and above 74% under the Government route, wherever it needs to access modern technology.

The DRDO developed technologies are now made available on a non-exclusive basis to the Indian industry, including the private sector against the payment of ToT and royalty fees. Also, the DRDO has come out with a revised policy and procedures for transfer of technology to industry.

Two defence industrial corridors in Uttar Pradesh and Tamil Nadu are being established by the Government. The Uttar Pradesh Defence Industrial Corridor (UPDIC) will have six nodes at Agra, Aligarh, Chitrakoot, Jhansi, Kanpur and Lucknow. The Tamil Nadu Defence Industrial Corridors (TNDIC) will have five nodes at Chennai, Coimbatore, Hosur, Salem and Tiruchirappalli. An investment plan of about 11,100 Crore and 8,700 Crore has been announced for Tamil Nadu and the UP corridors respectively by DPSUs including newly formed DPSUs and private companies.

The procedure of ‘Make-I and ‘Make-II programmes has been introduced and is being simplified further, by the Government which is likely to help MSME and Start-up companies to integrate into defence production. BEL is also participating in many of the Make-II programmes of the defence services.

Toward MoDs big push for the Atmanirbhar Bharat initiative, MoD has put an import embargo on 400 plus items from Aug 2020 and published four positive indigenisation lists of Services with timelines to boost the indigenisation of defence production. BELs Products / Systems can meet about 30% of these positive lists of defence indigenisation.

Under these changing business scenarios, BEL is focussing on enhancing its interaction levels and building long-term relationships with emerging strategic partners, users and other key stake holders in the Indian defence industry.

(c) SWOT Analysis


Leader in Defence Electronics in India

Strong multi-layered in-house R&D, skilled work force and strong domain knowledge

Wide product range with a strong Product Support network

Loyal customer base / strong relationship


Gaps in some of the technology areas

Dependence on the Defence market

High lead Time to Market

Excessive/multiple regulations impacting agility


Growing Defence & Security needs huge modernisation/upgrade plans for defence

Introduction of IDDM category in DPP

Strategic partnerships with friendly countries

Positive Lists for Indigenisation by MoD


Increased competition – Indian Private and Global

Changing Customer preferences

Rapid changes in technologies

Sourcing of few critical and denied technologies

Policy interventions favouring Private Sector

(d) Major initiatives undertaken/planned, including strategy, goals and targets set by the top management, to ensure sustained performance and growth of the Company

The Company has undertaken the following major initiatives to ensure sustained performance and growth of the Company:

(i) Strategic alliances in emerging businesses through Co-development, Co-production and Manufacturing ToT:

The Company is working in many strategic and other areas of national importance such as Weapon systems, Surveillance, tracking and multifunction AESA-based radars, naval & airborne applications, Next generation Electronic Warfare Suites and Counter Measure systems, Air Defence systems, including Seekers & Missiles, Unmanned Systems for land, air, surface & underwater applications, Anti-Submarine Warfare systems, Software Defined Radios for tactical applications, Network Centric Systems, Night Vision Devices, Multi-sensor Stabilisation systems, Arms and Ammunitions, Transportation Solutions for Railways and Metro, Composite Products for land, marine & avionics Segments, Artificial Intelligence & Robotics, Space Electronics & Launch Vehicles, Solar, Medical equipment and related solutions, Energy Storage products etc.

Many strategic alliances have been formed and also select partnerships are being pursued with defence laboratories, DPSUs including the newly formed DPSUs, academia, start-ups, niche technology companies and reputed global OEMs and Indian companies / agencies for addressing the emerging defence and non-defence businesses, including exports.

Some of the products & systems identified and being pursued for alliances for co-development, co-production and manufacturing ToT and for lifecycle support include Surface-to-Air Missile (SAM) Systems, Long Range Missiles, RF / IIR Seeker, Air Defence Radars (land and naval based), Navigational Complex system, Sonar Systems, Next Generation Night Vision Devices, Gun Upgrades / New Gun programmes, Small Arms for defence, Navigation Receivers, Explosives, Ammunitions, Inertial Navigation Systems, High Power Lasers, Tethered Unmanned Aerial Vehicles and Swarm UAVs, Remotely Operated Vehicle (RoV), Counter Measure Systems, Electronics systems for futuristic AFV platforms FICV etc, Satcom Terminals, Navigation receivers, Composite Products, Rail & Metro Solutions, Li-ion Cells, Medical equipment and related solutions etc.

(ii) Joint Ventures (for existing/emerging business areas):

BEL has been continuously exploring opportunities for establishing joint ventures / special purpose vehicles with reputed companies in complementary technology / strength areas to bridge technology gaps and also to scale up the existing areas as well as enter into new and emerging business areas.

The Joint Venture BEL-THALES Systems Limited (BTSL) is formed between BEL and Thales, France. Benefitting from the confluence of work culture and technology/ manufacturing support of the parent companies, the JV has imbibed the best practices of both parent organisations and is growing into a centre for development, evolution and customisation of products and as a trusted supplier.

BTSL has successfully manufactured and delivered low band receiver modules for electronic warfare suite solutions for fighter aircraft. BTSL has successfully customised and demonstrated the capability of Passive Radar to Indian customers like IAF, CABSEC etc. BTSL is also working on Built to Print projects for medium to long range Tracking and Illumination Radar System with Thales. BTSL is also carrying out Radar service management of Air Surveillance Radar (ASR) and Mono-Pulse Secondary Surveillance Radar (MSSR) for various existing and new customers. BTSL has set up a well-equipped Integration facility for high-end avionics systems, which has been further expanded for the manufacturing activity covering quality inspection, testing, assembly, functional tests, thermal cycling, vibration tests etc.

BEL is in advanced discussions with an Israel OEM for setting up a Joint Venture Company for providing product life cycle support for weapon system in India for which the Israel OEM is the main designer.

Technology Upgradation and R&D Challenges

Core technologies required for developing state-of-the-art products and solutions are often not readily available. R&D on core technologies requires constant upgrade for realising solutions with a competitive edge. While it is inevitable to use proprietary technologies, getting locked into a single source for technologies/solutions is a major challenge.

The demands of Size, Weight and Power (SWaP) along with quality requirements always push R&D efforts to the edge. At the component level, R&D efforts are steered towards meeting newer requirements of SoCs, MMICs, highly integrated processor ICs, microwave super-components, etc. At the product level, R&D efforts are towards creating modular, configurable, multi-function and fault-tolerant products. Realising Systems of Systems needs expertise in systems engineering, project management along with system integration expertise. Obsolescence of critical components, continued dependency on foreign OEMs and requirement to support the entire product life cycle are the other critical challenges.


To overcome the challenge of continuous upgrade of underlying core technologies for all products and solutions across BEL, a 3-tier R&D structure is put in place. The Central Research Laboratories (CRLs), one each located at Bengaluru and at Ghaziabad, are engaged in blue sky research and applied research in core technology areas of Communication, C4I, Big Data,

Network Centric Software, Electronic Warfare, Radio Frequency, Microwave, Power Amplifiers, Antenna, Radar Signal and Data Processing, Image Processing, Electro-Optics and Lasers, Embedded Smart Computing, Sensors, Networking, Navigation, Artificial Intelligence, Cyber & Network Security, Crypto, Switching, Cloud and Data Analytics, Machine Intelligence, Robotics, Unmanned Vehicles, NMS, DSS, Multi-Sensor Tracking and Data Fusion, GIS Technologies, Simulation, War Gaming, Tactical Algorithms, Cognitive Computing, Sensor-System Integration, Web Technologies, Software Engineering etc.

A centralised Product Development and Innovation Centre (PDIC) and the 3 Centres of Excellence (CoEs) in the areas of Electronic Warfare & Photonics (EW&P), Military Communication Systems (MCS) and Radar & Weapon Systems (R&WS), located at Bengaluru, focus on engineering of core technology modules into products / systems. The core areas of PDIC are Automation Solutions, Antenna Vertical, Crypto Solutions, Embedded Systems, Energy Systems, Engineering Solutions, RF and Microwave, MMICs, SoCs, Sonar Systems, Super Components, Navigation and Stabilisation, etc.

The Development and Engineering (D&E) divisions, operating at all Strategic Business Units (SBUs)/Units, liaison with end customers for understanding their requirements, mapping them to technical specifications and developing products/solutions incorporating the core technology modules developed through the other tiers, i.e. CRLs and PDIC.

The D&E of Software SBU, at Bangalore, addresses all requirements related to software modules either directly to the customers or through respective D&Es of SBUs/ Units. Recently, a Software Development Centre has also been opened at Visakhapatnam. The Software SBU is supported ably by the CRLs at Bengaluru & Ghaziabad.

In BEL, the challenges are further being addressed through planned R&D initiatives, systems engineering, technology training for R&D manpower, system-driven obsolescence management and by leveraging expertise through suitable collaborative R&D partners.

To overcome the challenge of lock-in to proprietary technologies, in feasible areas, the Company develops technology modules/solutions based on standard protocols and with modular designs which can be evaluated using standard test and measuring instruments. Even when a given Technology Module/

Product/ Solution is Built to Specifications (tailor-made for the defence forces), they are developed with standard interfaces so that it can be used as plug-and-play modules in larger systems to ensure modularity and scalability. This safeguards against the single-vendor/proprietary lock-in situation and ensures that the products/systems developed are easily maintainable.

Further, wherever a subsystem or a component is procured, multiple sources for this subsystem/ component are created to safeguard the Company from getting locked in to a single source. The ever-increasing need for low size, weight, & power is being addressed through the development of a series of miniaturised platforms/products/solutions by optimising processing performance, packaging and thermal management based on a standards-driven approach. Obsolescence is being addressed through obsolescence management plans, tools & actions, which help identify/create alternate sources and move towards indigenisation.

R&D Initiatives and Achievements

Following are some of the new initiatives undertaken by BEL in the areas of R&D and technology development during FY 2022-23:

New initiatives taken include online R&D Flash and IPR information capture on BEL ERP System, Creation of a Dashboard for R&D project status/progress monitoring/review, establishment of BEL-Indian Navy Incubation Cell for Artificial Intelligence (INICAI) at BELs R&D Collaboration and Incubation Centre, signing of MoU with IISc Bengaluru on AI-ML with projects initiated by Homeland Security, Software and CRL Bengaluru, restructuring of CRL Ghaziabad into two verticals as Research and Development (R&D) and Research and Technology (R&T), revision of Sub-delegation of Power for R&D and standardisation of Board / R&D Committee note formats.

BEL has initiated development of several Artificial Intelligence based projects some of which are Digital agriculture platform with integrated crop yield predictions, AI-enabled adaptive traffic signal control solution, Traffic rule enforcement analytics, garbage and litter detection, accident/vehicle break down detection, AI-based surface target classification, Satellite monitoring system, Kinematics on hexapod, and AI-based video analytics.

Efforts are on to enhance collaboration with premier educational institutions and set up R&D/Innovation cells in select institutions. BEL R&D Cell at Kochi has

BEL has been vigorously pursuing IPR related activities year after year. Concerted efforts put in have resulted in the grant of 100 IPRs including 22 patents during FY2022-23. Some of the granted patents are:

Voter Verifiable Paper Audit Trail (VVPAT) System; An Improved Laser Resonator; Automatic Track Initiation using derived kinematics for TWS Radar; Measurement of Radiation Pattern at Bench Level in Reactive Field of Linear Antenna Arrays; A Method for Calculating Cyclic Redundancy Check for Multi Frame Data Words; System and method for Exporting and importing table row data using database key constraints; A method for processing raw video for range ambiguity correction in Radar; Digitally tunable miniature filter; and a compact reconfigurable and fully scalable antenna beams steering controller.

As on 31 March 2023, the cumulative IPRs granted/ registered to BEL are 360 (Patents: 46, Copyrights: 301, Industrial Design: 10, SICLD: 1, Trade Marks: 2). In the r FY 2022-23, a total of 242 new IPR applications were filed (Patents: 121, Copyrights: 110, Industrial Design: 6, SICLD: 4, Trade Mark: 1). R&D/D&E scientists/engineers have presented and published 79 papers in reputed Conferences/Seminars/Journals in the FY 2022-23.

BEL has empanelled 9 new Collaborative R&D partners in the FY 2022-23. As of 31 March 2023, cumulative Collaborative R&D partners empanelled are 309 (including 155 MSMEs). The partners are categorised under R&D solution providers: 39, design service providers: 198, consultants: 40 and production service providers: 39, of which 7 partners are empanelled under two categories.

Some of the new initiatives undertaken by BEL in collaboration with academia:

Automatic modulation classification - IIT Mandi ; Design and development of auto key distribution - IIT Madras; IOMT-based anthropomorphic robotic glove - IIT Kota; Development of ferroelectric thin film based solar cell – IISc, Bengaluru; Study and Evaluation of AJIT processor - IIT Powai; C band 25 W GaN RF device with IIT Bombay Image analysis; Activity templating and trend estimation; Game theory based interception; AI-based multi-sensor framework; UAV own ship position; Voice-based identification; RT range enhancement.

Specific areas in which R&D was carried out and benefits derived as a result of the activities and details of major accomplished in the Equipments and Components area, during FY2022-23:

Specific areas in which R&D was carried on and benefits derived as a result of the activities

During FY 2022-23, many R&D projects were taken up by BEL and several projects were completed in specific business segments/areas. These include R&D projects in technology areas like Missile Systems, Radars, Electronic Warfare, Avionics, Military Communication, Naval Systems, Sonars, C4I Systems, Electro-optics and Laser, Tank Electronics, Gun Upgrades, Civilian Equipment, Homeland Security, Medical Electronics, and Components. The benefits derived are in the form of major share of revenues generated by the Company in the above business segments. Several technology modules have been developed, some of which have resulted in import substitution too. Some of the BEL-developed solutions have also resulted in export orders received by the Company.

(e) Diversification / Expansion Plans - New Frontiers

As a diversification strategy, the Company has been exploring opportunities in allied defence and non-defence areas for growth, leveraging its strengths & capabilities acquired in the defence electronics domain and capitalising on the conducive policy environment encouraging indigenous solutions. In the past 5 years, the non-defence portion, on an average in Companys business is about 15-20% of total turnover. This year, the Company has about 11% of turnover from the non-defence segment. The Company aims to achieve and grow and sustain the revenues from the non-defence business in the coming years to about 30% of the Companys turnover.

The Company has been putting continuous efforts & focus to enter and address several new areas in both defence & non-defence for further expanding its business in new markets for sustainable growth. Some of the areas being focussed upon in defence include - Next Generation Indigenous Missile Systems, RF Seekers, Imaging Infra-Red (IIR) Seekers, Arms & Ammunition and Explosives, Smart Weapons, Missile Electronics, Unmanned systems, Airborne Radars, Navigation receivers, Next Gen Image Intensifiers and

Thermal Imaging solutions for Night Vision Devices, Indian Regional Navigation Satellite System (IRNSS) based Inertial Navigation Systems (INS) and Solutions, Directed Energy Weapons, countermeasure systems for air platforms, Avionics systems for next. Gen Aircraft/ Helicopters, Software as a Service, Network & Cyber Security etc.

Some of the areas being focussed in the non-defence include: Solutions for Civil Aviation sector including Air Traffic Management solutions, Advance Ground Control Surface Movement Radar, Anti Drone Systems, Space / Satellite Electronics, Space Launch Vehicles, Satellite Communication Services, Satellite Assembly & Integration, Solar Business, Railway and Metro Solutions, Software as a Service, Electric Vehicles (Li-ion & Fuel Cells, Charging Stations etc.), Homeland Security & Smart City Businesses, Smart Meters, a range of Medical Electronics and Health Care Solutions etc.

BEL has successfully diversified into electronic Ammunition Fuzes, Missile Seekers, light weight Composite Shelters & Masts, Homeland Security & Smart Cities, Network & Cyber Security, Rail & Metro Solutions, Energy Storage products, Solar power plants, Medical Electronics, Cells & Modules, Cyber Security, Digital transformation solutions, Satellite Assembly & Integration, etc.

BEL also continuously strives to expand its business by capturing new customers in the existing geographical markets as well as new geographies for its proven products, systems & solutions. BEL has ventured into new business models like Government-owned Company Operated (GOCO), OPEX Model etc. (e.g. Class Room Jammers, X-ray Baggage Inspection Machines, etc.) to expand its business by capturing new customer segments. BEL is striving to exploit its dual-use technologies (e.g. SDR, Solar Products, Satcom Solutions, etc.) for expanding the market as well as customisation of its products/solutions to meet the new customer segments / geographical areas, especially in the export markets.

BEL is leveraging its new international marketing offices to expand the reach of its products & services to new markets and also explore offset opportunities. BEL is also forging partnerships with other PSUs/industry players to quickly expand the geo-spatial reach through resource sharing.

(e) Specific Measures on Risk Management, Cost Reduction and Indigenisation:

1. Risk Management:

Your Company has an established Enterprise Risk Management (ERM) deployed across the Company. The deployment of ERM is based on the Risk Management (RM) Policy of the Company, approved by the Board, based on the recommendation of the Risk Management Committee (RMC) of the Board.

The Risk Management Policy is reviewed and revised periodically taking into account the changes in the external business environment. The RM policy of the Company is revised during the current financial year. The changes, among others, include the introduction of ESG risk in the identified areas of Risk.

The Risk Management Policy outlines the Risk management structure, scope and objectives, identified areas of risks, roles and responsibilities of Risk Management Committees at various levels, Role and functions of risk champions and other concerned personnel in the Company in respect of ERM implementation.

RM policy in the Company is implemented through an established ERM framework across the Company. The Risk Management framework of the Company has a three-tier structure, with a Board of Directors (BOD) through the Risk Management Committee of the Board (RMC) at the Apex level; Corporate Risk Management Committee (CRMC) at the corporate level and Unit Risk Management Committees (URMCs) at the Strategic Business Units (SBUs)/Units/R&D centres etc.

A comprehensive framework for risk identification, evaluation, prioritisation and mitigation of various risks associated with different areas such as technology, market, product, cyber security, environmental social and governance (ESG), operations, finance, human resources, etc. are also defined in the Policy.

Based on the analysis of the risks reported by the URMCs, risks which have a potential impact across the Company and which need the expert advice and direction of the RMC are identified by the Corporate Risk Management Committee (CRMC) in various areas like technology, marketing, operations, finance, security, HR, ESG, etc. Based on the review by the RMC and its recommendations these risks are addressed by introducing suitable policies and or business process improvements which emphasise decision making incorporating risk mitigation measures.

The implementation of mitigation measures is further reviewed by the RMC for compliance and the implementation status is reported to the Board.

Risks which may have significantly impact the operations of the Company or wherever deemed necessary, are reported to RMC. RMC reviews the risks and recommends to the Board for further deliberations and approval of mitigation measures.

2. Cost Reduction:

In the changing environment of competitiveness and more emphasis by Government on Atma-Nirbhar Bharat (Self Reliance), Cost Competitiveness has become more important for the company. As the profit margins are reducing, cost competitiveness works as survival strategy. BEL has adopted cost reduction strategy as one of the thrust areas. "Cost Reduction" Task Forces are set up in all the Units / SBUs with members from Cross Functional Areas. The Task Forces identify & take up projects and set target for achieving cost reduction with focus on both manufacturing & non-manufacturing areas and encompass all facets of business.

3. Indigenisation:

BEL strongly believes that achieving Self-reliance is one of the prime objectives to meet the strategic needs of the nation. Towards this endeavour, around 75% of the Companys turnover is generated from indigenous technology.

In line with Governments "Make in India" policy, BEL has been taking several initiatives to achieve Self-Reliance through a strong thrust on In-house R&D and Indigenisation, Increased outsourcing from Indian Private industries, Public Private Partnerships, Joint Ventures, Capacity expansion, Infrastructure Development & modernisation etc. Major initiatives taken towards achieving the goals of Indigenisation & self-reliance include:

Continuous product development through In-house R&D efforts, Joint development by partnering with DRDO, National R&D Labs & Academia and Collaborative R&D partnership with the Indian private sector (MSMEs/Start-ups) & foreign OEMs/ Design houses

ToT-based In-depth manufacturing from foreign OEMs

Import substitution of critical sub-systems through in-house/domestic vendor development

Three years R&D plan for Indigenous development

Outsourcing & Vendor Development Policy

Test facilities for use by Indian Private entities

EoIs published for imported items under Make-II to attract capable/prospective domestic manufacturers for Indigenisation

Details of items planned for Indigenisation uploaded on ‘Srijan Portal, Indigenisation portal of MoD

The Government has taken several policy initiatives and brought reforms to encourage indigenous design, development & manufacture of defence equipment within India, with an aim to reduce dependency on imports. These initiatives, inter-alia, include (1) According priority to procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020 (2) Notification of four ‘Services Positive Indigenisation Lists of total 411 items for which there would be an embargo on the import beyond the timeline indicated against them. There are as many as 133 items of BEL included in these lists.

In addition to this, setting up of the two defence corridors, one each in Uttar Pradesh and Tamil Nadu, aims to generate employment in the coming years. Subsequently, six nodes, namely Aligarh, Agra, Chitrakoot, Jhansi, Kanpur and Lucknow were identified for Uttar Pradesh Defence Industrial Corridor (UPDIC) and five nodes, namely Chennai, Coimbatore, Hosur, Salem and Tiruchirappalli for Tamil Nadu Defence Industrial Corridor (TNDIC). Defence Industrial Corridors (DICs) are aimed at providing a fillip to the defence manufacturing ecosystem in both States.

In order to meet the objectives set for Indigenisation of critical components, the Government of India has been implementing various Action Plans that would address all aspects of the eco-system.

BEL has a greater role to play and complement in realising the Governments objectives on Indigenisation. With the sustained business growth of BEL in Defence Electronics, the opportunities for its supply chain partners are also on the increase, especially for the MSMEs, Startups and domestic players as the companys "thrust and thirst" has been on Indigenisation and Self-reliance since its inception.

While BELs objective & initiatives provide tremendous scope for Indigenisation activities, the Company is confident of increased participation from all sectors will lead to self-reliance and a win-win situation among its supply-chain partners.

DPSUs Positive Indigenisation List:

DPSUs Ist Positive Indigenisation List released in Dec 2021 consists of 2 parts: a) 2,500 items (already indigenised) of which 152 items pertain to BEL. b) 351 items (to be indigenised) during the next 3 years, of which 18 items pertain to BEL.

Out of 107 items in IInd DPSU Positive Indigenisation List, 21 items of import value 1,768 Crore pertain to BEL. These 21 items have to be indigenised in the next 5 years.

Out of 780 items in IIIrd DPSU Positive Indigenisation List, 69 items of import value 222 Crore pertain to BEL. These 69 items have to be indigenised by 2028.

Out of 928 items in IVth DPSU PIL, 9 items of import value of 317 Crore pertain to BEL. These 9 items have to be indigenised by 2028.

(B) Internal Control System and its Adequacy:

BEL has a robust system of internal controls in place. It has documented policies and procedures on Purchase, Sub-contract, Works contract, Accounting, HR, IT and Security, Sub-delegation of Powers, etc. covering all financial and operating functions, and revised in tune with the changing times. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, and protecting assets from unauthorised use or losses, compliance with regulations, etc. BEL has implemented File Life Cycle Management System (FLM) for online processing and approvals of procurement and other proposals, which facilitates complete transparency, accountability, protection and security of the information/files. Elaborate guidelines for preparation of accounts are followed consistently for compliance with Indian Accounting Standards (Ind AS) and Companies Act, 2013.

BEL has implemented a Company-wide ERP system (SAP) with centralised deployment. Governance Risks and Compliance (GRC) Access Control module has been implemented as the primary means of addressing user access risks by embedding preventive rule based checks while assigning authorisations to business transactions.

Authorisations to users are given based on principles of Segregation of Duties and Least Privilege. Risk rules have been configured in the system in several business processes like Finance, Procure to Pay, Order to Cash, Material Management, HR and Payroll. Risk analysis reports are regularly run to ensure that processes are under control. Additional control in the form of biometric fingerprint authentication for critical transactions is also in place. Audit logs for all changes in roles and authorisations are maintained.

BEL has its own Internal Audit Department commensurate with the size and nature of its operations, with teams of professionally qualified personnel who conduct regular and comprehensive internal audits to ensure that all checks and internal control systems are in place. Services of external professional audit firms are being utilised to carry out 100% vouching of vendor payments (including travel/medical claims reimbursements) in nine Units (including BEL Corporate Office, CRL BG Cx, CRL Ghaziabad and PDIC during 2022-23). The Company has a sub-committee of the Board viz. Audit Committee (AC) to keep a close watch on compliance with Internal Control Systems. Also, being a Government Company, BEL is subject to Audit by the Comptroller & Auditor General of India (C&AG).

BELs Internal Audit teams are located at major manufacturing units and Corporate Office of the Company which carry out audits as per risk-based Annual Audit Programme approved by the Audit Committee of the Board. New centre is also planned to address the increased volume of transactions in certain regions wherever required. Internal Audit issues reports to the Auditees and after considering the Auditees replies/action taken reports, IA Centres submit reports of significant issues observed during the audit to the Head of Internal Audit on a periodical basis. Head of Internal Audit submits his/her reports to Companys Management at various levels for corrective actions and finally submits a report to the Audit Committee of the Board indicating status of compliance with well-established internal control systems of the Company and plan for mitigating the key risks associated with major activities of the Company. State-of-the-art Data Analytical Tool is also being used in Internal Audit for data analytics for identification of outliers, if any. BELs Internal Audit checks the adequacy and effectiveness of internal control system through regular audits, system reviews, process reviews, data analytics, etc. and provides assurance on compliance with the legal and regulatory requirements, internal policies and procedures of the Company. Functioning of Internal Audit as well as Internal Control systems are periodically reviewed by Board-level Audit Committee. The Audit Committee of the Board of Directors, comprising Independent Directors, regularly reviews the audit plans, significant audit findings, adequacy of internal controls, and compliance with accounting standards and policies from time to time and issues directives for compliance to further strengthen the internal control system keeping in view the dynamic environment in which the Company is operating.

The Internal Audit Manual, 2023 of BEL outlines the internal audit process in line with the changes that are taking place in the business world with respect to the business process, statutory compliances and the expectation of the stakeholders. It addresses the areas relevant for the auditors information and knowledge for conducting the audit in a meaningful way. Internal Audit Manual serves as a professional guide for conduct of audit and to improve professional approach for effective internal audit function.

The Company continues its efforts to align all its processes and controls with global best practices, to assure the highest level of Corporate Governance.

(C) Financial/Operational Performance:

1. Strategy & Objectives: The main objectives of the financing strategy of your Company are to generate adequate internal resources for profitable growth, to give value for money and create wealth for shareholders, to maintain the highest credit rating and to build in risk mitigation strategies in the business processes to minimise exposure to financial risks.

2. Performance Highlights:


Year ended 31 March 2023 Year ended 31 March 2022

Revenue from Operations

17,64,620 15,31,376

Earnings before Interest,

4,04,752 3,30,924

Tax, Depreciation and Amortisation(EBITDA)

EBITDA Margin (EBITSA/ revenue from operations [Net])

22.94% 21.61%
Profit After Tax 3,00,667 2,34,893

No. of Days Inventory/Value of Production

132 133

No. of Days Trade Receivables/ Turnover

148 148

Current Ratio

1.46 1.39

Debt Equity Ratio

- -

3. Analysis of Financial Performance of FY 2022-23:

Turnover registered a growth of 15.22% from

15,04,367 Lakhs in 2021-22 to 17,33,337 Lakhs in 2022-23.

Value of Production has increased from 15,32,064 Lakhs in 2021-22 to 17,73,082 Lakhs in 2022-23. Increase of 15.73%.

28% increase in Profit After Tax, from 2,34,893 Lakhs in 2021-22 to 3,00,667 Lakhs in 2022-23.

Increase of PAT to Turnover Ratio from 15.61% in 2021-22 to 17.35% in 2022-23.

Turnover per Employee has increased from 169.93 Lakhs in 2021-22 to 196.23 Lakhs in 2022-23.

Earnings Per Share has increased from 3.21 in 2021-22 to 4.11 in 2022-23.

Book Value Per Share has increased from 16.39 in 2021-22 to 18.58 in 2022-23.

Net Worth has increased from 11,98,426 Lakhs in 2021-22 to 13,58,199 Lakhs in 2022-23.

Return on Net Worth has increased from 19.60% in 2021-22 to 22.14% in 2022-23. The main reason for increase is due to increase in Value of production by 15.73%.

(D) Development in Human Resources:

BEL has been focussing on the sustained development of its employees, both at the individual and at the team level through various Human Resources Development initiatives. The focus has been on the Development and Enhancement of Functional, Behavioural and Leadership Competencies in Executives across all Domains and Grades. In line with this, various Technology Specific Programmes, Management Development Programmes, Quality Related Certification Programmes and CEP Programmes were organised both Internally through Subject Matter Experts and Externally through Premier Training Institutions.

Some of the Learning and Development initiatives rolled out during the year are enumerated below:

Sl. No.

Name of the Program

Brief of the Program Target Audience Coverage


Probationary Engineers Induction Program - Batch 1 & 2 The 36-days induction program enables newly joined executives to understand business operations along with Plant & customer visits to ensure smooth integration into the new work environment. E-II grade 253 PEs attended the program


Building Agility for Effective Leadership (BAEL) The program focusses on how businesses need to be agile to adapt to a changing business environment. E-VI & above 27 Executives attended the program


Program on Interpersonal Effectiveness PIE was conducted for Promotee Executives in E-I grade to appreciate the importance of interpersonal effectiveness E-I grade 59 Executives attended the program


Competency Enhancement Program (COMET) for professional growth & business excellence. COMET was conducted to enhance specific competencies after identifying gaps based on BEL Behavioural Competency Survey. E-I to E-III grades 259 Executives attended the program


Intellectual Property Rights (IPR) The program was conducted to provide basic awareness on Intellectual Property Rights covering various topics like Patents, Copyrights, Trademarks etc. All executives 129 Executives attended the program


Creativity & Innovation Program (CIP) The program was conducted to address the business case for innovation & varied aspects of creativity & lateral thinking required for progressing towards innovative behaviour culminating in effective growth. E-II & E-III grade 26 Executives attended the program


Orientation Program for Executives Posted to Overseas Offices To orient the newly posted executives on important features of various products & infrastructure, future product development plans etc. in Units/ SBUs. Executives posted to overseas offices 10 Executives attended the program


Internship Program for Air Force Trainee Officers Internship Program intended to provide practical exposure on various activities related to production/overhaul/ maintenance of various systems & their components in BEL. Air force Engineering Trainee Officers 10 Air Force Engineering Trainee Officers attended the Program


Awareness Program on Defence Export Policy The programs aim to provide awareness of different aspects of the Defence Export Policy. E-II to E-V grades in Mktg. & D&E 39 Executives attended the Program


Sl. No.

Name of the Program

Brief of the Program Target Audience Coverage


Post Graduate Certificate in Management - Batch 1 The program is a one-year online program intended to give the executive a holistic understanding of Business Management & its functions and strengthen strategic thinking and leadership skills. E-IV & above by selection 25 Executives completed the program


Post Graduate Certificate in Management Batch 2 The program is a one-year online program intended to give the executive a holistic understanding of business management & its functions and strengthen strategic thinking and leadership skills. E-IV & above by selection 25 Executives are attending the program


Advanced Leadership Program - Batch 2 ALP was conducted based on the Group Reports gap from Assessment Centre data based on BEL Behavioral Competency Model. E-VI & above 53 Senior Executives attended the program


Certificate Program in Executive Coaching Leadership development is a critical imperative for individual & business development. The program will help develop executive coaches who will facilitate leadership capability development across various levels. HR executives 24 Executives attended the program

During the FY 2022-23, various Technology programs were conducted to enhance the Domain Knowledge and Competencies of our engineers in various technology areas. Executives were also nominated for External Technology programs conducted by Premier Institutes. Some of the programs conducted at BAE/ Nominated by BAE are:

Sl. No.

Name of the Program

Brief of the Program Target Audience Coverage


60 Unique technology programs from various technology domains

Topics on DEW Systems, Intelligent Transportation Systems, GaN-based HPOC Designs, DFM&A, EMP Technologies, Communication, Signal Processing, RADAR, SONAR, MM Wave Engineering, Jamming& Anti- Jamming, Power and spectrum efficiency enhancement techniques for SDRs, Advanced GIS, Automation, Control Systems, Systems Engineering for Defence Product Technologies, Avionics & Electronic Warfare Systems, EMI/EMC, RFIC Design, Unmanned Systems, Emerging Fields in Defence Technologies, Deep Learning, Image processing with Computer Vision, Machine Learning, Cryptography, Information Security, IoT, Advanced GD&T,


1281 Executives attended the programs


21 Certification Programs

Advanced Cloud Computing, Programming Languages. Topics on Wireless & Cellular Communication, Block Chain - Hyper ledger Fabric for Developers, Microwave Engineering, Mechanical Vibration, Machine Learning, Cyber Security, Design of IoT, Principles and Techniques of Modern Radar Systems, Manufacturing Automation, Industry 4.0, IndAS, CDMA/MIMO/OFDM, Patent Law for Engineers & Scientists, Manufacturing Automation, Control Systems, Artificial Intelligence, Data Analytics with Python, Design of Highly Efficient PA using Doherty Technique, Digital Image Processing, Embedded OS/ Embedded Systems, Indirect Taxation - for Finance Executives/GST.


85 Executives attended the programs


M.Tech (Communication & Signal Processing) - IIT Madras Covers advance topics in DSP, Modulation and Coding, Wave propagation, Antenna, Wave guides, Microwave circuits and RADAR systems. EIII-EVI 18 Executives completed the program


M.Tech (Data Science & Engineering /AI) -BITS, Pilani Provides mathematical foundation for data science and develop models based on AI, ML, Deep Learning and Natural Learning Processing. EIII-EV 35 Executives completed the program


IITM - M.Tech (Microelectronics) - IIT Madras Specialisation in Microelectronics with emphasis on design, simulation, modelling, fabrication and testing of microelectronic devices and systems. EIII-EVI 20 Executives are attending the program


Sl. No.

Name of the Program

Brief of the Program Target Audience Coverage


M.Tech (Communication & Signal Processing with Networks Specialisation) - IIT Madras Covers advance topics in the areas of communications & signal processing, with a focus on networks that includes wireless LAN, cellular communication networks. EIII-EVI 13 Executives are attending the program


M.Tech (Mechanical Design) - IIT Madras Covers the areas of Product Design, Engineering Design Optimisation, Advanced Composites, Advanced Mechanics of Solids, Product Reliability, Computational Methods on Engineering, Advanced Dynamics, Vibrations, FEA. EIII-EVI 16 Executives are attending the program

In the Quality Domain, the following Programs were conducted during the FY 2022-23:

Sl. No.

Program Name of the Brief of the Program Target Audience Coverage


Certified Quality Engineer (ASQ- CQE) The ASQ-CQE Certification is a globally recognised certification for QualityExecutives in Engineers working in any field. This is the mother of all ASQ Certifications, and E-III to E-VIA it is one of the most comprehensive programs on quality. The program covers the whole set of quality concepts which are imperative for any Engineer working in any field, and who intends to improve his/her work processes. The ASQ-CQE Body of Knowledge (BoK) covers all the latest and relevant global concepts on quality and related topics. grade 42 Executives attended the program


Certified Reliability Engineer (ASQ- CRE) The ASQ-CRE is one of the most sought-after and globally recognised certification for Design Engineers. The ASQ-CRE Body of Knowledge (BoK) includes design review and control, prediction, estimation, and apportionment methodology, FMEA, planning, operation and analysis of reliability testing including mathematical modelling, understanding human factors in reliability and the ability to develop and administer reliability information systems for failure analysis, design, and performance improvement over the entire product lifecycle Executives in E-III to E-VIA grade 37 Executives attended the program


Certified Manager Of Quality/ Organizational Excellence (ASQ- CMQ/OE) The ASQ-CMQ/OE is one of the most prestigious and globally recognised certification for top-level Quality Managers. The ASQ-CMQ/OE Body of Knowledge (BoK) includes topics like: Lead and champion process improvement initiatives in organisations. Lead team efforts to establish and monitor customer/ supplier relations; support strategic planning and deployment initiatives. Develop measurement systems to determine organisational improvement. Motivate and evaluate staff; manage projects and human resources. Analyse financial situations, determine and evaluate risk, and employ knowledge management tools and techniques in resolving organisational challenges Executives in E-V to E-VII grade (E-V + 4 Years Experience) 21 Executives attended the program


Certified Software Quality Engineer (ASQ- CSQE) The ASQ-CSQE Certification is a globally recognized certification for Software Quality Engineers. This is one of the most comprehensive programs to focus on software quality. It covers the whole set of software quality concepts which are imperative for any Software Engineer to build an understanding of software quality development and implementation, software inspection, testing, verification and validation, and implementation of software development and maintenance processes and methods. The ASQ-CSQE Body of Knowledge (BoK) covers the benefits of Software Quality Engineering, Team skills, Leadership skills, Software quality management, System and software engineering processes, Project management, Software metrics and analysis, Software verification and validation, and Software configuration management. Executives in E-III to E-VIA grade 13 Executives attended the program


Certified Supplier Quality Professional (ASQ-CSQP) The ASQ-CSQP Certification is a globally recognised certification for Engineers and professionals working in development and improvement of the supply chain for any business area. This is one of the most comprehensive programs on supplier quality development. The ASQ-CSQP Body of Knowledge (BoK) includes Supply chain vision/mission, Supply lifecycle management, Supply chain cost analysis, Risk management, Supplier selection and part qualification, Supplier performance monitoring and improvement, Supplier quality management, Relationship management, Business Governance, Ethics, and Compliance. Executives in E-III to E-VIA grade 19 Executives attended the program


Sl. No.

Program Name of the Brief of the Program Target Audience Coverage


Project Management The PMP Certification [based on Exam Content Outline (ECO)] is one of the most sought-after and globally recognised certification for Project Managers. Executives in E-IV to E-VII 92 Executives attended the
Professionals (PMP) The Project Management Body of Knowledge (PMBOK) includes ten Knowledge Areas (KAs) and the Agile Practice Guide. There are a total of 49 processes in these ten KAs grouped under five Process Groups i.e. Initiating, Planning, Executing, Monitoring & Controlling and Closing Process Group. This program introduces the participants with the basic project Management terminology, glossary and concepts including the Agile concepts as given in the PMBOK Guide. This "35 Contact Hours Project Management Preparatory Training" Program is a mandatory requirement for taking the PMP certification exam offered by PMI-USA. grade program


Design for Six Sigma Green Belt (DFSS-GB) (ISI) Studies have shown that 70-80% of all quality problems are design related. The Design for Six Sigma (DFSS) aims to design or redesign products, services or processes so as to achieve Six Sigma quality. In addition to Six Sigma DMAIC tools, the program provides additional tools, structure and better methods for new design or design modification to achieve greater commercial and technical success of the ultimate product or service. The DFSS approach uses a structured method of DMADV, which indicates the five phases of design improvement, i.e. Define, Measure, Analyse, Design, and Verify. Executives in E-III to E-VIA grade 29 Executives attended the program


Certified Six Sigma Black Belt (CSSBB) (ISI) Six Sigma-DMAIC methodology is a powerful breakthrough business strategy based on data and fact driven approach, and sound performance metrics coupled with statistical analysis. It uses a structured method of DMAIC, i.e. Define, Measure, Analyse, Improve, and Control. The program is at Black Belt (BB) level. A Certified Six Sigma Black Belt (CSSBB) can successfully apply the methodology for breakthrough process improvement resulting in significant improvement in quality, productivity and competitiveness. Executives in E-IV to E-VIA grade 25 Executives attended the program


Business Analytics & Data Management (BA&DM) (ISI) Data is extremely important for an organisation. The insights gained from data analysis can help an organisation develop specific strategies and actions to cost reduction, new product development and optimised customer offerings, and smarter business decision making that drives growth and reduces risks. In order to move to a fact-based decision making culture, managing performance, establishing a framework for decision-making and aligning strategies, todays organisations must adapt business analytics. The course will dwell upon data management techniques, supervised learning for developing models using statistical learning techniques, and machine learning techniques. Executives in E-III to E-VIA grade 25 Executives attended the program.


ISO 14001:2015 EMS Internal Auditor Program Internal audit is an important aspect of an Environmental Management System. This course is intended to provide an understanding of global environmental issues, the national and international legal and regulatory framework for environmental protection, and the requirements of the ISO 14001:2015 Standard. The program also covers the auditing requirements, and methodologies essential to conduct an effective internal audit as per ISO 19011 Guidelines. Audit case studies and open discussions are used to reinforce the learning and required skills of an internal auditor. Executives in E-IV to E-VIA grade 53 Executives attended the program.


ISO 9001:2015 QMS Internal Auditor Program Internal audit is an important aspect of a Quality Management System. This course is intended to provide an understanding of evolution of ISO 9000 Series Standards, Fundamental Quality Management Principles, and the requirements of the ISO 9001:2015 Standard. The program also covers the auditing requirements, and methodologies essential to conduct an effective internal audit as per ISO 19011 Guidelines. Audit case studies and open discussions are used to reinforce the learning and required skills of an internal auditor. Executives in E-IV to E-VIA grade 12 Executives attended the program.


SIX SIGMA DMAIC - GREEN BELT (DMAIC- GB) Six Sigma is a data-driven, process oriented approach, for causing breakthrough improvement in products, processes, and services. Six Sigma is a new culture of doing business. It started with defect elimination through variability reduction in processes, and has become now a means to achieve business excellence. Six Sigma DMAIC methodology uses a structured method of Define,Measure, Analyse, Improve and Control. The program will cover the basic concepts of Six Sigma, various quantitative data analysis techniques for structured problem solving methods, lean concepts, principles and tools. This program will equip the participants to acquire Six Sigma Green Belt certifications, and to successfully apply the methodology for breakthrough improvement. Executives in E-III to E-VIA grade 181 Executives attended the program


Sl. No.

Name of the Program

Brief of the Program

Target Audience



New Programs

Quality Management Tools, Basic Statistics & Introduction to Six Sigma, Project Management Principles

Executives in E-II-EIII grade

100 Executives attended the programs

In addition to the above, the following employee assistance program was introduced during the financial year 2022-23

Sl. No.

Name of the Program

Brief of the Program



Program for Emotional Wellness & Enrichment (POWER)

The employee assistance programme focusses on the emotional wellbeing of the employees. It has been launched in association with United We Care Corporation in the form of a mobile based application which offers all the employees unlimited 24 x 7 access to a wide range of tools and interventions concerning holistic wellness and also provides an option to seek expert advice from Life Coaches, Psychologists, Psychiatrists, Wellness experts, Nutritionists etc. with the promise of complete confidentiality.

All the employees of BEL (8844 employees + maximum of 3 dependents/family members)

Some of the external/open programs/conferences attended by our Executives are:

(i) Online Live IDEA Boot Camp on CaseWare IDEA

12 Advanced Analytics conducted by IDEA Data Analysis Software.

(ii) IIA Annual Conference 2022 (Cyber Security and Impact of Digital Transformation) conducted by The Institute of Internal Audit.

(iii) Interactive Workshop of Senior executives of CPSEs handing implementation of CSR in their CPSEs conducted by the Department of Public Enterprises. (iv) Master class on Building Better Boards by the Indian Institute of Corporate Affairs (IICA) (v) Training program on Preventive Vigilance at NFSU, Gandhinagar, Gujarat conducted by Central Vigilance Commission.

(vi) 11th Strategic Electronic Summit (Defence and Aerospace) conducted by ELCINA.

(vii) Seminar on ICDS and Tax Audit conducted by ICAI.

(viii) Training and Capacity Building Workshop on PM GatiShakti National Master Plan for Sr. Level officers of PSUs conducted by Ministry of Commerce and Industry. (ix) Knowledge sharing workshop for CPSEs on marching towards gender neutrality - the way forward conducted by ONGC and NLC India Ltd.

(x) Workshop on Applying Design Thinking for Innovation Excellence conducted by XIME, Bengaluru.

(xi) Webinar on Procurement by CPSEs from MSEs and through GeM Portal conducted by DPE and SCOPE. (xii) 16th Global Communication conclave on the Theme "Custodians of Reputation-Building New Narrative" conducted by the Public Relations Council of India. (xiii) HR Meet of DPSUs conducted by Goa Shipyard Ltd. (xiv) Intensive training on LDRA Tool Suite conducted by LDRA.

For and on behalf of the Board
Bhanu Prakash Srivastava
Bengaluru Chairman & Managing Director
1 August 2023 (Additional Charge)