History

_x000D_ Bharat Electronics Limited (BEL) was established in 1954 under the Ministry of Defence to meet the specialised electronic needs of the Indian Defence. The company was listed on BSE in 1993 after a successful IPO.  In the past years, it has also diversified into manufacturing multiple civilian products. The company’s customers in the Indian market include the Dept of Telecommunication, Paramilitary Forces, Railways, the Defence Research & Development Organisation, the Election Commission of India, and the list goes on. _x000D_ _x000D_ The company has now matured into a multi-product, multi-technology, multi-unit conglomerate empowering the nation’s armed forces with state-of-the-art products and systems in the areas of Radars and Fire Control Systems, Missile Systems, Communication & C4I systems, Electronic Warfare and Avionics, etc. As of FY 2022, BEL had 9 manufacturing units spanning Banglore, Ghaziabad, Pune, Machilipatnam, Panchkula, Chennai, Kotdwara, Hyderabad, and Navi Mumbai._x000D_ _x000D_ In 2021, it won the Business Standard Annual Awards for corporate excellence as  STAR PSU of the Year. In addition, the company won the Manufacturing Company of the Year Award’ and ‘The Woman Manufacturer of the Year Award’ by Manufacturing Today in 2022._x000D_

Business Segment

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• Defence Segment: The company provides products and services specifically for defence needs under this segment. These include Navigation Systems, Defence Communication products, Land-based Radars, Naval Systems, Electronic Warfare Systems, Avionics, Electro-Optics, Tank and armoured Fighting Vehicle Electronic Systems, Weapon Systems, C4I Systems, Shelters and masts, Simulators, Batteries and Components / Devices. During FY 2022, the segment has been a mainstay for the group and recorded a contribution of 90% to overall revenue.
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• Non-Defence Segment: The company deals with civilian requirements via this segment. The product and services comprise ​Cyber Security, E-Mobility, Railways, e-Governance Systems, Homeland Security, Civilian Radars, Turnkey Projects and Components / Devices. The segment derived 10% of revenue in FY 2022.
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• BEL Optronic Devices Limited (BELOP): It is a wholly-owned subsidiary of BEL, which is engaged in the manufacturing of Image Intensifier Tubes used in night vision devices and dewar assembly for cooled thermal imager applications.
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• BEL-THALES Systems Limited (BTSL): BEL possess a 74% stake in the company, and the subsidiary is involved in designing, developing, marketing, supplying and supporting Civilian and Select Defence Radars for Indian and Global markets and other end-users.
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• Defence Innovation Organisation (DIO): BEL holds 50% shareholding in the subsidiary. It is a ‘Not for Profit’ company to fund innovation in the Defence sector.
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BEL Corporate Action

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• In 2022, the company announced a bonus share issue of 487,31,85,886 shares in a ratio of 2:1. The record date for the issue was September 16, 2022.
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• In 2017, the company announced a bonus share issue in a ratio of 1:10. The record date for the issue was September 29, 2022.
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Management Outlook

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• The company is focused on expanding the business by capturing new customers in the existing and new geographies. New business models like OPEX, Service model, and Government-owned Company Operated (GOCO) are being explored towards this.
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• BEL is optimistic about its plans to expand the network of marketing offices, which presently spans six countries. The company is focused on increasing business opportunities in South East Asia, Europe, the Middle East, Africa and North and South America.
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SWOT Analysis

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• Debt-free business.
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• Diversified revenue stream.
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_x000D_ Weaknesses_x000D_

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• Falling market share due to the entry of new players in the industry.
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• Rising operational costs.
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_x000D_ Opportunities_x000D_

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• Higher demand for defence products.
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• Focus on increasing revenue from the non-defence segment.
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_x000D_ Threats_x000D_

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• Geo-political crisis.
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• Competitive pressure.
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