Bharat Dynamics Share Price

Bharat Dynamics Limited overview

Bharat Dynamics Limited journey

Key milestones since inception are:

• 1970: The company is established as a PSU under the Ministry of Defence.
• 2003: BDL starts manufacturing 2nd generation ATGMs.
• 2004: The firm starts the manufacturing of the naval version of strategic missiles.
• 2007: Bharat Dynamics begins the production of anti-torpedo decoy systems.
• 2008: BDL becomes the production agency for long-range SAMs & heavyweight torpedos.
• 2010: The foundation stone is laid for the third manufacturing unit of BDL in Visakhapatnam.
• 2011: The former President of India, Pratibha Devi Singh Patil, lays the foundation stone for BDL's unit at Amravati, Maharashtra.
• 2014: BDL pays its highest-ever dividend to the government.
• 2015: The firm delivers Akash weapon systems to the army.
• 2016: It executes share buyback.
• 2017: It delivers LRSAMs to the navy.
• 2019: BDL provides MRSAMs to the airforce.
• 2020: The company marks its golden jubilee.

BDL - Initial Public Offer (IPO)

BDL products

• As part of its manufacturing activities, the Hyderabad unit manufactures SAMs, Milan 2T ATGMs, countermeasure launchers and test equipment.
• In the Bhanur unit, Konkurs - M ATGMs and launchers and spares for INVAR (3 UBK 20) are manufactured.
• Its business is to refurbish missiles and extend the lives of deployed and stored missiles.
• It holds a monopoly in the production of SAMs, torpedos and ATGMs in India.
• Currently, it is the only supplier of SAMs and ATGMs for the military.
• At the Vishakapatnam plant, lightweight torpedoes are manufactured, in addition to anti-torpedo countermeasure systems and spare parts. It is also designated to produce VSHORADMs.

Akash SAMs

Long-range SAMs (LRSAMs) and medium-range SAMs (MRSAMs)

Milan 2T ATGMs

Konkurs - M ATGMs

INVAR (3 UBK 20) ATGMs

CMDS

BDL business highlights

The key highlights of BDL's business performance are:

BDL performance highlights

BDL management

• Chairman & Managing Director (CMDE): Siddharth Mishra (Retd)
• Director General (Missiles and Strategic Systems): Dr. BHVS Narayana Murthy
• Joint Secretary (DIP): Anurag Bajpai
• Director (Finance): Nuka Srinivasulu
• Director (Production): P. Radhakrishna
• Independent Directors: Sunil Chintaman Mone, Prof. (Dr.) Sanghamitra Mishra, Rajendra Singh Shekhawat, Nanda Kumar Subburaman and Dr. Pawan Sthapak

Indian defense industry overview

Size of the Indian defence industry

• There have been significant developments, government support and investments in the defence manufacturing sector in the past few years.
• During FY2022-23 (until 1st August 2022), India produced ₹17,885 crore of defence equipment.
• From 1st to 20th August 2022, Chandimandir hosted the 3rd edition of Vietnam India Bilateral Army Exercise - 'Ex VINBAX 2022'.
• During FY2022-23 (until 1st August 2022), exports for the Indian defence sector reached ₹1,381 crore.
• On 4th August 2022, Defence Research and Development Organisation (DRDO) and the Indian Army successfully tested laser-guided anti-tank guided missiles mounted on Main Battle Tank (MBT) Arjun with support from Armoured Corps Centre and School, Ahmednagar, Maharashtra.
• For April 2000 to March 2022, FDI equity inflows into the defence sector reached USD 13 million, based on data from the Department for Promotion of Industry and Internal Trade (DPIIT).

Defence industry growth prospects

• The Defence Ministry sanctioned the supply of military equipment from domestic firms for ₹76,390 crore in June 2022.
• The government sanctioned the establishment of two Defence Industrial Corridors (DICs) in the country. One is in Uttar Pradesh, called the Uttar Pradesh Defence Industrial Corridor (UPDIC) and the other in Tamil Nadu, called the Tamil Nadu Defence Industrial Corridor (TNDIC). This was done to attract ₹10,000 crore of investment in each.
• The Union Budget 2022-23 allocated ₹5,25,166 crore to the Ministry of Defence. Among the expenditures are salaries and pensions of the civilian contractors and members of the armed forces, modernisation of the armed forces, the production of establishments, the maintenance of infrastructure, and R&D organisations.

Risks and concerns

• Indian self-reliance has been hampered by a lack of capital expenditures on defence production, research and development.
• The Indian defence budget has grown over the years, but most funds go to personnel costs, including salaries and pensions, reducing the amount available for defence. For example, for 2020-2021, 58.6% of the defence budget was spent on salaries and pensions and only 22.7% on capital expenditures.
• A relative increase in defence production expenditures is also imminent, even as personnel costs increase.
• India allocated 4% of its 2020-2021 defence budget for research and development, lowering the expenditure amount further.

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