global partnership BEL-THALES
Limited
BEL has established vast manufacturing infrastructure across four
strategic business units for production. These include specialised
assembly and test facilities for RF & Microwave Super components,
Near Field Test Range (NFTR) Antenna test facilities and Far-field
Antenna test facilities. Thales is a world leader in mission-critical
information systems for Aerospace and Space, Defence and Security
markets. Thales’ designs, manufactures and sells a comprehensive
range of radars tailored to the needs of military and civil users.
Bharat Electronics Limited and Thales
Bharat Electronics Limited (BEL) was set up in
Bangalore in 1954, under the Ministry of Defence
and is India’s foremost Defence electronics company.
BEL is a multi-product, multi-technology, multi-unit
conglomerate with over 350 products in the areas
of Military Communication, Radar, Naval Systems,
C4I systems, Weapon Systems, Electro optics and
Electronic Warfare systems.
BEL has been manufacturing Radars since 1964 for
the Defence forces based on in-house development,
transfer of technology from DRDO and technical
collaborations with several leading foreign Defence
OEMs. In the process, BEL has established vast
manufacturing infrastructure across four strategic
business units for production. These include
specialised assembly and test facilities for RF &
Microwave Super components, Near Field Test Range
(NFTR) Antenna test facilities and Far-field Antenna
test facilities. EMI/EMC, ESS and environmental test
facilities have also been set up.
Technological Challenge-Expanded Capability
BEL has gained expertise and experience in
absorbing and further developing technologies.
There have also been several success stories in the
field of indigenous development of radars and BEL
has been enjoying the status of a premier Radar
House in India. The Radar segment is a thriving
business area and constitutes about 25-30 per cent
of BEL’s turnover from sales covering Surveillance,
Tracking, Navigation, Air Traffic Management
and Fire Control Radars.
However, there are many gaps in technology that
need to be overcome in order to produce sophisticated
radars of the future. More than ever, Size, Weight and
Power (SWaP) management in all Radar segments is
posing a technological challenge. Networked Radars,
Small Form Factor Radars, Radars for aerospace and
space applications are the emerging requirements.
For such opportunities, BEL scouted for engagement
with a reputed International Radar company which
could complement BEL’s strengths to address the fast
developing Radar business.
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April 2016 Defence AND security alert
‘Make in India’ initiatives
In line with the Government’s Make in India policy,
BEL has been taking several initiatives to achieve
self-reliance in Defence through strong thrust on:
● In-house R&D and indigenisation
● Increased outsourcing from Indian private
industries
● Public-Private Partnerships
● Joint Ventures
● Capacity expansion and modernisation
In-house R&D and indigenisation:
■ R&D being the key area of focus, constant efforts
on R&D has enabled BEL to achieve 80 per cent
of its turnover from indigenous technologies.
■ BEL has been substantially investing around 8
per cent of its turnover on R&D annually and is
planning to increase to 10 per cent progressively
in the next 3 years.
■ BEL has institutionalised a process for 3-year
Roll-on R&D plan based on customer perspective
and technology roadmap.
■ BEL is in the process of setting up a new Product
Development & Innovation Centre for developing
common sub-systems and futuristic products.
■ BEL has empanelled around 180 partners
for collaborative R&D including 100 Indian
private industries to further augment its R&D
and Product design efforts and also bridge the
technology gaps. Around 120 projects have
already been identified for collaborative R&D.
Increased outsourcing from Indian Private
Industries:
■ BEL recognises outsourcing as one of the
strategic tools to achieve cost benefits and also
complement the strengths of private sector to
build a strong industrial base.
■ BEL is focussing more on core areas and R&D.
■ BEL has formulated long-term outsourcing and
vendor development policy.
■ BEL has also prepared a policy for use of its test
facilities by the Private entities.
■ BEL has achieved procurement level of
8 per cent from MSMEs during 2014-15 against
4.73 per cent during 2013-14.
■ To give further impetus to ‘Make in India’ manufactures and sells a
policy, BEL has nominated Nodal officers across comprehensive range of radars
all its 9 Units.
tailored to the needs of military
■ In order to broaden the domestic Vendor base, and civil users. A large pool of
BEL added 750 new indigenous vendors during engineers and researchers give
2014-15 and has planned to add around 800 Thales a capability to design
new indigenous vendors during 2015-16.
and deploy equipment, systems
■ BEL has implemented online vendor registration and services to meet the most
and e-procurement processes.
complex security requirements.
Public Private Partnerships:
In the Radar segment,
Dr Ajit T Kalghatgi
The indigenously developed Surface to Air Akash Thales is well known for
The
writer
is currently Chairman
Missile system, which was inducted into the Indian mastering the development of
of
BEL-THALES
Systems
Air Force by the Honourable Raksha Mantri, is a great real-time software for complex
Limited and Director (R&D) of
success story and BEL is proud to be a part of it. Radar systems, as well as
Bharat Electronics Ltd.
Barring a few electronic components, every bit of mission critical software and
Akash has the Made in India tag.
C4I software.
BEL is selected as one of the development and
production agency for major MAKE category Joint Undertakings
projects such as Tactical Communication System BEL and Thales have had well past experiences in
and Battlefield Management System, to be working together and supplying Radars to Indian
executed in partnership with Industry players.
Defence services and providing life time support for
Joint Ventures:
the same. Thales expressed
willingness to co-operate
In order to further strengthen
Akash Missile System is an and partner through a Joint
BEL’s design capability in the
area of Radars, BEL formed
excellent example of Public venture arrangement for
a new joint venture with
select business areas and to
Private Partnership
a European major Thales,
work on joint development
France, for civilian and select
programs.
defence Radars.
Capacity Expansion & Modernisation
● BEL spends around ` 400 crores on expansion
and modernsiation of infrastructure every year.
● World-class manufacturing and test facilities
set up in the recent past are:
■ Super components facility
■ Integration test facility for Weapon systems
■ Antenna test range facility
■ High roof hangar for Radar and Antenna
integration
■ Modern production set-up for airborne
applications
■ Environmental test facilities
■ BEL is planning to spend around ` 1,500 crores
in the next 3 years as part of capacity expansion
and modernisation
Industry Perspective Thales
Search for a joint venture partner from amongst
several international companies was based on the
world standing of the company and the sharing of
a common vision. Thales was invited to be this joint
venture partner. As the erstwhile CSF, Thales had not
only provided technical assistance during the setting
up of BEL six decades ago but also participated in
several successful projects and technology transfers
over the decades. Professional work culture,
complementary strengths and willingness to partner
and share technology and market access made
BEL-Thales partnership an obvious choice.
Thales is a world leader in mission-critical
information systems for Aerospace and Space,
Defence and Security markets. Thales’ designs,
April 2016
Defence AND security alert
41
global partnership BEL-THALES
SK Sharma, CMD, Bharat Electronics Limited
The Joint Venture Company, BEL-Thales Systems commenced for the initial projects. Indigenisation,
Limited was incorporated in August 2014. Equity co-development and ‘Make in India’ for the local as
contribution in the Joint Venture is 74 per cent by BEL well as international market is the motto of the JV.
and foreign direct investment of 26 per cent by Thales The Joint Venture has a turnover forecast of around
(comprising 21 per cent from Thales India Private INR 3000 Crores over the next decade. Access to global
Limited and 5 per cent from Thales Air Systems SAS, markets will enhance business growth with significant
France). The Joint Venture will truly benefit from the sales coming from exports. As has been the case in
confluence of work culture of the parent organisations other sectors of business, product customisation from
by imbibing the best practices of both. Appropriate engineering, cost and features perspective will have an
technologies will help mould the company into a edge to the products made for India.
trusted designer and supplier.
The Scope of the Joint Venture is to Design, Develop, Role Of BEL In Defence Sector:
Market, Supply and Support Civilian and a few selected New services to modernise Armed Forces
Defence Radars for Indian and Global markets. BEL is working in many strategic areas such as AESA
Located in Bangalore, the JVC will acquire capabilities based modern Radars, Next Generation Electronic
in essential Radar technologies and fill certain gaps Warfare Suites, Air Defence Systems, Tactical
in technologies in the country for production of Communication Systems, Battlefield Management
state-of-the-art radars. With substantial technology Systems, Passive Night Vision Devices and
transfer from Thales, this JVC is expected to grow as a Multi-sensor Stabilisation Systems.
Centre for development, evolution and customisation
BEL has entered into many strategic alliances for
of products. The aim is to
addressing the emerging
bring out complex, high
requirements of the
technology Civilian and
Indian Defence forces
With substantial technology
select Defence Radars
with Defence laboratories,
transfer from Thales, this JVC Ordnance Factory Board,
for Indian and Global
markets in a time bound
is expected to grow as a Centre DPSUs and other reputed
and cost effective manner.
global/Indian companies.
for development, evolution and The various products/
The JVC will address
a larger share of the fast
systems include Surface-tocustomisation of products
developing Indian and
Air Missile (SAM) systems,
International Radar and
Air Defence Radars,
Radar Systems’ business. Besides the initial products Tactical Communication Systems, Battlefield
selected, such as Air Traffic Management (ATM) Radars Management System, Sonar Systems, Next
and Short Range Surveillance Radars, potential future Generation Night Vision Devices, Gun upgrades
products like Long Range Surveillance Radars and /new gun programmes, Inertial Navigation Systems,
Active Phased Array based Fire Control Radars have Medium-Altitude Long-Endurance Unmanned
been identified. Teams with experts from partners have AerialVehicles (UAVs), Electronic Ammunition
been pooled together and co-development work has Fuses, Electronics Systems for Futuristic Infantry
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April 2016 Defence AND security alert
Combat Vehicle (FICV), Satcom Terminals and collaborative role in developing the large private sector
Missile Containers.
players and MSMEs in the growth path. BEL expects
Strategies To Retain BEL’s Leadership
to further move up the value chain and become a
India has evolved as the most lucrative full-fledged Lead System Integrator across technology
aerospace and defence market globally with mega domains and design value chain.
acquisition programs coupled with the government’s
proactive stance towards modernisation of the Indian Role Of BEL vis-à-vis Private Players
defence forces. The defence budget, as projected Currently, BEL is the system integrator in Military
by FICCI, in the next 10 years is to the tune of Radars, Missile Systems, Electronic Warfare and
US$ 620 billion with 50 per cent for capital Avionics and other strategic electronic systems in
acquisitions for the Indian defence forces. The collaboration with Private industry and the MSMEs.
Indian Defence Aviation industry is one of the Akash Missile System is an excellent example of Public
fastest growing markets in the world propelled by Private Partnership, which has resulted in a worldthis increasing defence spend. As per the FICCI class Missile system. Going forward, there will be
report, the annual opportunity for Indian companies increased private sector participation in the Indian
(PSU & Private) is expected to reach US$ 41 billion defence and aerospace sector. Government is currently
in size by FY 22 and US$ 168 billion of cumulative exploring a Strategic Partnership Model, to identify
opportunity between FY 14-22 driven by domestic and develop large private sectors as Lead System
and external demand.
Integrators similar to PSUs.
In the changing business environment, BEL
BEL is bullish on the opportunities available and
has taken several steps towards enhancement of keen to capitalise on these opportunities in the defence
in-house R&D such as creation of short/medium and aerospace sector. BEL will continue to collaborate
/long-term Technology Plans, close co-operation with with DRDO and select foreign technology partners
DRDO Labs, other national
and would be working
research laboratories and
on the next generation
Professional work culture,
R&D organisations including
products and systems in
academia, R&D Committees
areas of Radar, Missile
complementary strengths and the
to chart out technology
Systems, Communication,
roadmaps and action plans
Naval Systems and other
willingness to partner made
and Collaborative R&D with
Defence systems and
BEL-Thales partnership an
niche technology companies.
products.
BEL, in association with
In the backdrop of
obvious choice
DRDO labs, is developing
increasing competition in
the next generation modern
the defence business from
Radars (AESA-based), Surface to Air Missile Systems, private industry, BEL is gearing up with strategies
Electronic Warfare suites for fighter aircraft and and action plans to maintain its technological edge
helicopters, Integrated EW systems for various and ensure future growth. With its inherent strengths,
terrains for the Indian Army, Software Defined Radios strong R&D, state-of-the-art infrastructure,
for the Armed forces, Thermal Imaging sights for competent workforce and diverse product range, BEL
Tanks and Weapons etc.
intends to retain its leadership position in strategic
BEL is currently playing the role of a System electronics.
Integrator and will continue to involve and play a
April 2016
Defence AND security alert
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