BEL conferred Navratna Status

New Delhi, June 22 (UNI) The Bharat Electronics Limited (BEL) was today formally conferred the 'Navratna' status by Finance Minister P Chidambaram at an investiture ceremony here marking a new chapter in the illustrious history of this premier defence PSU.

BEL manufactures a wide range of products in the areas of Military Communications, Radars, Naval Systems, Telecom and Broadcast, Electronic Warfare, Tank Electronics, Opto-electronics, Professional Electronic Components and Solar Photovoltaic Systems.

The PSU became a 'Mini Ratna - Category I' company in February 2002 and has now been elevated to a 'Navratna' based on its consistent performance.

BEL was started in 1954 to meet the defence electronics requirements of the Indian Armed Forces. Starting with a single Unit at Bangalore, it now has nine units spread across the country.

From a humble beginning, BEL has grown steadily over the years to register a Compound Annual Growth Rate (CAGR) of around 15 per cent during the past 5 years.

During 2006-07, BEL recorded a turnover of Rs 3,960.38 crore (provisional) and profit-after-tax (PAT) of Rs 713.85 crore (provisional).

In all, 81 per cent of the company's turnover accrued from products of indigenous design which included BEL's own R&D efforts and its collaboration with DRDO labs.

BEL -- spending nearly 5 per cent of its turnover on R&D -- is constantly innovating and coming out with new products to meet customers' requirements.

The eligibility for considering a PSU for 'Navratna' status is that it should be a 'Mini Ratna I' Schedule 'A' company and have obtained 'excellent' or 'very good' MoU rating in three of the last five years.

Besides, it should have registered a composite performance score of 60 or above on various financial parameters for the last three years including Net Profit to Net Worth, Manpower Cost to Total Cost of Production, Profit before Depreciation, Interest and Tax (PBDIT) to Capital Employed, Profit before Interest and Tax (PBIT) to Turnover and Earning Per Share.

Significantly, BEL has been ranked first among mid-size aerospace/defence companies worldwide by Aviation Week and Space Technology for 2004 and 2005. BEL was named Star PSU for 2004-05 by the Business Standard financial daily.

By becoming a 'Navratna' PSU, BEL will have greater financial and operational autonomy. BEL looks forward to leveraging this for further business growth and diversification, according to a company spokesperson.

On the occasion, BEL Chairman and Managing Director VVR Sastry said: ''We are delighted. It is a recognition of the company's inherent strengths in research and development, manufacturing, quality and thrust on self-reliance. It is also a recognition of the company's ability to face global competition and become an international player." UNI