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http://www.deccanherald.com/content/559364/lt-defence-aerospace-sources-50.html
L&T Defence & Aerospace, India’s biggest private sector defence company, has said that 50% of its sourcing is taking place from SMEs.
In an interaction with DH, Senior Vice President and Head of L&T Defence & Aerospace Jayant D Patil said that the company is focussing on areas including warships, submarines, communications, engineering equipment, artillery and missile systems.
“Currently, we have 1,100 SME partners for our eight defence manufacturing plants spread across the country. But L&T treats about 70-80 of them as partners with placement of repeat orders. These companies have continuous work from us,” Patil said.
He pointed out that no PSU can match with L&T in this aspect of ecosystem creation, as it is sourcing 50% of components from SMEs.
Patil also added that the company is committed to, and is focussing on indigenisation, having begun as partner to DRDO three decades ago to design and develop indigenous technologies and products.
Design centres
“Today, we have five R&D centres, also called design centres, across the country. Our Bengaluru centre, where we have 200 employees, handles product development, including embedded systems software for avionics and military communication segments,” he said.
L&T Defence and Aerospace is looking at acquisition and JVs very carefully. “As we believe in indigenisation of products and systems, our approach to merger and acquisition is selective, and so is global collaboration. We have attained 60-90% indigenisation,” he said.
“It is better that we design products as they create high value with indigenous technology to support the armed forces through product life cycle. Also, we can save on cost because we know how to make changes, undertake upgrades and develop next generation products,” he said.
On the export front, he said that the company is doing business of Rs 150 crore a year, and this is confined to five countries. “We expect that it will increase at least three to four-times in the next five years,” Patil said.
The company is also eyeing to secure at least Rs 50,000 crore worth of orders over three years in defence across the areas of focus.
India has become the world’s fourth largest spender on defence, following an increase of 13.1% in its 2016-17 overall defence budget, according to research firm IHS.
However, this year’s capital budget has not grown over revised estimates of last FY.
From the dubious distinction of largest importer of defence equipment in the world, Indian policymakers are taking definite initiatives to indigenise the sector and have categorised 3.1 lakh crore worth of acquisition programmes over the past two years with almost 85-90% being ordered from Indian companies.
L&T Defence & Aerospace, India’s biggest private sector defence company, has said that 50% of its sourcing is taking place from SMEs.
In an interaction with DH, Senior Vice President and Head of L&T Defence & Aerospace Jayant D Patil said that the company is focussing on areas including warships, submarines, communications, engineering equipment, artillery and missile systems.
“Currently, we have 1,100 SME partners for our eight defence manufacturing plants spread across the country. But L&T treats about 70-80 of them as partners with placement of repeat orders. These companies have continuous work from us,” Patil said.
He pointed out that no PSU can match with L&T in this aspect of ecosystem creation, as it is sourcing 50% of components from SMEs.
Patil also added that the company is committed to, and is focussing on indigenisation, having begun as partner to DRDO three decades ago to design and develop indigenous technologies and products.
Design centres
“Today, we have five R&D centres, also called design centres, across the country. Our Bengaluru centre, where we have 200 employees, handles product development, including embedded systems software for avionics and military communication segments,” he said.
L&T Defence and Aerospace is looking at acquisition and JVs very carefully. “As we believe in indigenisation of products and systems, our approach to merger and acquisition is selective, and so is global collaboration. We have attained 60-90% indigenisation,” he said.
“It is better that we design products as they create high value with indigenous technology to support the armed forces through product life cycle. Also, we can save on cost because we know how to make changes, undertake upgrades and develop next generation products,” he said.
On the export front, he said that the company is doing business of Rs 150 crore a year, and this is confined to five countries. “We expect that it will increase at least three to four-times in the next five years,” Patil said.
The company is also eyeing to secure at least Rs 50,000 crore worth of orders over three years in defence across the areas of focus.
India has become the world’s fourth largest spender on defence, following an increase of 13.1% in its 2016-17 overall defence budget, according to research firm IHS.
However, this year’s capital budget has not grown over revised estimates of last FY.
From the dubious distinction of largest importer of defence equipment in the world, Indian policymakers are taking definite initiatives to indigenise the sector and have categorised 3.1 lakh crore worth of acquisition programmes over the past two years with almost 85-90% being ordered from Indian companies.
