Juggernautjatt
FULL MEMBER
- Joined
- Jul 23, 2014
- Messages
- 1,426
- Reaction score
- -4
- Country
- Location
Forging and engineering player Bharat Forge has signed Memorandum of Understanding (MoU) to manufacture defence products, after Defence Minister promised quick 3-month clearances in defence projects.
Seeing a lot of potential in the defence sector, Amit Kalyani, Executive Director, Bharat Forge said the company is set to invest Rs 600 crore in Gujarat plant, as Gujarat goverment is focusing on defence manufacturing. Given that the plant will be funded via internal accruals, the investment will happen over a phased period, based on order, he added.
Sonia: Take us through what your plans are as far as increasing your investments into Gujarat plant and also in the defence space, what is the future looking like?
Answer : We have created a strategy for our defence business over the last five years where we have identified certain products that have complemented to our capability which we have started with, which are basically on land systems and artillery front. We have developed products including Bharat 52 and three other platforms and now we are expanding our focus to three new areas also which we have been working on for the last three years in association with several global companies as well as on our own and these are in the areas of armoured vehicles, electronics and radars. The MoU that we have signed is to setup a new facility which will enable us to manufacture these products and taking a cue from ‘Make in India’ thrust, we are trying to do this in Gujarat because Gujarat is giving us quick clearances and they are facilitating this whole process in terms of approvals and land and things like that and they are creating focus for defense manufacturing also. So that’s what our target here.
Latha: What is the timeline for this investment? Do you break ground right away and where is the money coming from. Is it all entirely cash accrual?
A: We have signed MoU now. We will get land, we will get all environmental clearances etc and then we will start breaking ground and building facilities, but all these are for multiple programmes across multiple products, across multiple sectors, so it’s an investment programme that will also happen over a phased period of time inline with the programmes coming on bid or on order.
Latha: How long. At the moment can we expect 300 crore in three years? What is the timeline of investment?
A: First we will setup a basic facility where you can make prototypes and you can do development work and then when the order visibility that is when you will start scaling up, but to answer your other question about where will the funds come from, this will be internally fund it.
Read more at: To invest Rs 600cr for defence mfg in Gujarat: Bharat Forge - Moneycontrol.com
Seeing a lot of potential in the defence sector, Amit Kalyani, Executive Director, Bharat Forge said the company is set to invest Rs 600 crore in Gujarat plant, as Gujarat goverment is focusing on defence manufacturing. Given that the plant will be funded via internal accruals, the investment will happen over a phased period, based on order, he added.
Sonia: Take us through what your plans are as far as increasing your investments into Gujarat plant and also in the defence space, what is the future looking like?
Answer : We have created a strategy for our defence business over the last five years where we have identified certain products that have complemented to our capability which we have started with, which are basically on land systems and artillery front. We have developed products including Bharat 52 and three other platforms and now we are expanding our focus to three new areas also which we have been working on for the last three years in association with several global companies as well as on our own and these are in the areas of armoured vehicles, electronics and radars. The MoU that we have signed is to setup a new facility which will enable us to manufacture these products and taking a cue from ‘Make in India’ thrust, we are trying to do this in Gujarat because Gujarat is giving us quick clearances and they are facilitating this whole process in terms of approvals and land and things like that and they are creating focus for defense manufacturing also. So that’s what our target here.
Latha: What is the timeline for this investment? Do you break ground right away and where is the money coming from. Is it all entirely cash accrual?
A: We have signed MoU now. We will get land, we will get all environmental clearances etc and then we will start breaking ground and building facilities, but all these are for multiple programmes across multiple products, across multiple sectors, so it’s an investment programme that will also happen over a phased period of time inline with the programmes coming on bid or on order.
Latha: How long. At the moment can we expect 300 crore in three years? What is the timeline of investment?
A: First we will setup a basic facility where you can make prototypes and you can do development work and then when the order visibility that is when you will start scaling up, but to answer your other question about where will the funds come from, this will be internally fund it.
Read more at: To invest Rs 600cr for defence mfg in Gujarat: Bharat Forge - Moneycontrol.com
