Bharat Forge, a leading player in the Indian manufacturing sector, has announced a significant step in its strategic plan to bolster its defence capabilities. The company is consolidating its entire defence vertical into its subsidiary, Kalyani Strategic Systems Limited (KSSL).
This move comes as KSSL secures a license from the Department for Promotion of Industry & Internal Trade (DPIIT) for the manufacture of a wide array of defence products at its Jejuri unit in Maharashtra.
KSSL: A Rising Star in Defence Manufacturing
The DPIIT approval opens doors for KSSL to participate in future defence programs and further solidifies its position in the industry. Notably, KSSL has already established partnerships with international collaborators, securing export orders valued at $155.5 million.The company's track record includes exporting India's first indigenously developed artillery system and securing multi-year orders for ammunition shells, highlighting its growing prominence in the sector.
Defence: A Crucial Growth Driver for Bharat Forge
Bharat Forge has identified defence as a key pillar in its growth strategy. In the fiscal year 2024 (FY24), the company secured substantial defence orders worth nearly ₹4,500 crore, contributing significantly to its overall order book.The defence vertical's revenue surged by fourfold to ₹1,561 crore in FY24, with exports accounting for over 90% of this revenue. This robust order pipeline ensures revenue visibility for the next three years and underscores the company's commitment to the sector.
Scaling Manufacturing Capabilities
Bharat Forge is actively expanding its manufacturing capacity in the defence domain. The company aims to produce over 250 guns and 1,000 vehicles annually, with the flexibility to increase output in response to rising demand.This strategic investment aligns with the Indian government's push for self-reliance in defence manufacturing under the 'Atmanirbhar Bharat' initiative.
India's Growing Defence Sector
The Indian defence sector has witnessed remarkable growth in recent years. In FY24, defence production reached ₹74,739 crore, with private companies contributing 22% of the total output.Defence exports also experienced a substantial increase of 32.5% compared to the previous fiscal year. The government has set ambitious targets for the sector, aiming to triple production to ₹3 lakh crore and double exports to ₹50,000 crore by FY29.
