- 18 Nov 2022
- ICICIdirect Research
BHARAT ELECTRONICS SIGNS MOU WITH AVNL, AWEIL
BEL - 298 Change: -2.60 (-0.87 %)News:
Bharat Electronics (BEL) has signed MoUs with Armoured Vehicles Nigam (AVNL/AVANI) and Advanced Weapons and Equipment India (AWEIL) to jointly address the requirements of Indian Defence and export markets. AVNL and AWEIL are defence PSUs under the Department of Defence Production, Ministry of Defence. AVNL is engaged in designing & building armoured fighting vehicles (like tanks, infantry combat vehicle, mine protected vehicles, logistics vehicles, etc) while AWEIL is engaged in the design, development and manufacture of defence systems like small arms, medium calibre weapons, air defence, artillery gun systems, ammunition hardware, etc
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BEL has been focusing on expanding its capabilities in other product categories in the defence segment including arms & ammunitions and land based systems. BEL is already in the process of setting up new facility at Nagpur for arms & ammunitions and at Ibrahimpatnam (Telangana) for land-based systems. The company was already engaged in development & manufacturing of electronic systems for armoured fighting vehicles. With this MoU with AVNL, we believe BEL will be able to further expand its capabilities in this segment. In arms & ammunitions also, BEL is actively pursuing opportunities and the MoU with AWEIL will help the company create a new dedicated business segment. We believe that expanding product portfolio and capabilities into this segments will help BEL to explore export opportunities also in future. The order book position of the company was at Rs 52,795 crore as of September 2022 end (~3.1x TTM revenues). Orders inflow during FY23 is expected at ~Rs 20,000 crore
Impact:
Positive