An Overview
By Our Special Correspondent
INTRODUCTION
In the current Indian scenario, Information Techno-
logy is a household word. In the India of the 80s and 90s, Electronics
as a concept gained wider acceptance, particularly in the entertainment
and communication fields. However, when we go back to the 50s and 60s,
the concept of Electronics was totally alien not only to India but even
to many other advanced countries. When it comes to Defence Electronics,
it is only during the Gulf War days of the early 90s that the world realised
its potential.
With this background, it speaks volumes about
the foresight of the founding fathers of Independent India who had the
vision to establish the country's premier electronics manufacturing company,
Bharat Electronics Limited, way back in 1954 at Bangalore under the Ministry
of Defence.
Though Bharat Electronics was primarily set up
to meet the Defence Electronics requirements of the country, over the years
it has grown into a multi-unit, multi-product company. Besides having 9
manufacturing units located at various parts of the country, BEL has a
network of regional offices, marketing centres and service centres - a
couple of them located at New York and Singapore. BEL presently employs
about 14,600 people, out of which around 3,200 are engineers and other
officers.
PRODUCT RANGE
BEL's product range is wide and varied. While
it manufactures communication equipment, radars and other products for
the Defence Services, it produces a variety of equipment and components
for the Civil Sector.
On the Defence Communication side, BEL supplies
a wide range of HF/VHF/UHF Manpack, Static and Mobile transreceivers and
Transmitter/Receiver Stations which have been developed in-house using
State-of-the-art technology. BEL's family of HF transmitters cover a power
output range of 100 W to 20 KW and incorporate the latest technology like
frequency systhesizers, automatic tuning, high stability and solid state
design for low and medium power stages. BEL has developed a range of programmable
communication receivers, tactical communication equipment and encryption
equipment. In addition to this, BEL supplies the Army a range of multichannel
VHF/UHF Digital Radio Relays, which are designed for quick deployment.
Multichannel Troposcatter Microwave Communication equipment - developed
in-house by BEL - provides a rugged and compact communication system for
the Army and Air Force. BEL also supplies SATCOM systems for the Air Force
and Composite Communication Systems (CCS) for the Navy.
On the civil sector, BEL supplies various types
of HF, VHF, UHF and Microwave Communication Transmitters, Receivers and
Radio Relays to Civil Departments like the Police, DoT (BSNL) and Railways.
BEL is a major supplier of a wide range of studio and transmission equipment
for sound and vision broadcasting for All India Radio and Doordarshan.
Various types of equipment are developed and supplied for the Space Department's
programmes. BEL also supplies Earth Stations to VSNL, uplink for Doordarshan
and Flyaway Terminals for Disaster Management. In addition to this, BEL
supplies various types of Antennae for DoT (BSNL), Doordarshan, VSNL and
the Space Department.
BEL is also involved in the manufacture and supply
of a variety of other products for the civilian sector. Energy Savers for
air conditioners, Motherboards for PCs, Solar Panels and Systems and Surgical
Microscopes are some such products.
On the Components side, BEL is the largest indigenous
source for a variety of electronics components like semiconductors, ICs,
Hybrid Micro Circuits, Crystals and Liquid Crystal Displays for use in
entertainment as well as professional electronic equipment.
PERFORMANCE
With the infrastructural facilities set up over
the years, the R&D expertise built up over the last four decades and
the well-trained and dedicated manpower that has been nurtured since its
inception, the company has been earning profits since 1960. While the company
has achieved a turnover of about Rs.1,500 crores (including direct exports
of Rs.26 crores) during 1999-2000, BEL is set to achieve a turnover of
Rs.1,650 crores in 2000-01, with a forecast of Rs.3,000 crores for the
year 2006-2007. This amounts to a growth rate of 10% per annum. BEL plans
to achieve and sustain this growth rate by periodically updating its products
to match the market requirements as well as technology changes. BEL also
plans to diversify into new business areas such as Airport Modernisation,
Communication and Safety Equipment for Railways, X-ray tubes, Wireless
in Local Loop for rural communication, etc.
BEL has been signing a Memorandum of Understanding
(MoU) with the Government of India since 1989-90 and the ratings of the
company against the MoU during the last 5 years have been either Very Good
or Excellent.
R&D
BEL established its own R&D departments in
the 1960s. Through its own research and development and through the collaboration
agreements entered into with various world-class manufa- cturers, BEL has
acquired an excellent capacity to develop professional electronic equipment
and to assimilate technologies from overseas manufacturers. This enables
BEL to support all its equipment and products for periods ranging from
10-25 years.
Besides designing new generation equipment and
periodic updation of the same, the R&D departments work closely with
DRDO labs for progressing new development projects on concurrent engineering
basis and to absorb the technology for speedy industrial manufacture. On
an average, BEL has been spending 5% of its turnover on R&D.
In addition to the establishment of R&D departments
in all the units, BEL has set up Central Research Laboratories at Bangalore
and Ghaziabad for undertaking fundamental research in futuristic areas
so as to identify and realise latest technologies relevant to the company's
products. The Central Research Laboratories have been emerging as first-class
Research Laboratories by establishing close links with academic institutions
and the manufacturing wings of the company. These Central Research Laboratories
have been addressing the areas of Signal Processing, Computing, Radar &
Communication Systems, Microwave Systems and Microelectronic packaging.
QUALITY
To achieve and sustain the highest levels of
quality in all its areas of operation, BEL has adopted the Total Quality
Management (TQM) approach. All the Divisions / Units of BEL have obtained
ISO 9000 accreditation.
In order to channelise and disseminate the quality
practices acquired over the years, BEL has established a Quality Institute
during the year 1999-2000. The institute is imparting training on quality
related issues to all the officers of BEL at middle and senior level. The
institute is also engaged in the development of training modules on various
quality related areas and conducts regular training programmes not only
for BEL officers but also for Customer Agencies on a selected basis.
EXPORTS
In addition to the supply of equipment to the
Defence Services and the efforts to create a niche market in the civil
sector, BEL has been giving a thrust to exports over the last one and a
half decades. A variety of products are being exported to countries like
Mauritius, USA, Hong Kong, Kenya, Austria, Philippines, Singapore, Switzerland,
Israel, Nepal, Malaysia, Botswana, Brazil, etc. The products exported include
Defence Communication Equipment, Components, Software, Batteries, Energy
Saver Equipment and Optical Components. While BEL has achieved an exports
turnover of Rs.31 crores (including deemed exports) during 1999-2000, it
aims at reaching an exports turnover of Rs.40 crores during the year 2000-2001.
CHALLENGES AND CONCERNS
While BEL has been performing well on the financial
front and receiving various awards in the areas of R&D, Safety, Professional
Electronics, etc, it has also been faced with expected and unexpected challenges
over the year. Factors such as liberalisation and globalisation have thrown
open the Indian professional electronics market to all players. BEL met
this challenge by measures such as product updation, diversification and
cost reduction. The rapid obsolescence of electronic components, systems
and equipment has been another major challenge, which is being met by BEL
through its own R&D strength.
Besides the above expected challenges, measures
such as US restrictions (and the consequent passive sanctions by some European
countries)
on some of the units of BEL in the post-Pokharan II years have thrown up
unexpected challenges. BEL always found an opportunity in such challenges
and tightened its belt by forming task forces to address such issues. By
the persistent efforts of these task forces to identity alternate sources/components
and redesigning of the sub-systems of equipment, where necessary, BEL could
cope with the US sanctions and meet its commitments to the Defence Services
to a large extent. The efforts initiated are being further progressed so
as to progressively reduce BEL's dependence on imports from the US and
other sanction imposing countries.
PLANNING FOR THE FUTURE
BEL has established a regular system of preparing
and monitoring five year Roll-on-Plans (RoPs). These plans are prepared
and reviewed twice a year to assess and ascertain the market / technology
positions and to apply corrections to the plans on a continuous basis.
These five year RoP exercises have turned out to be very successful and
the plans have by and large been materialising.
In addition to the above, a Medium Term Perspectives
Plan for 1998-99 to 2006-07 has also been drawn up with the Ministry of
Defence with the active participation of the Army, Navy and Air Force.
This plan is expected to provide greater levels of certainty for the growth
of the company.