BEL on aquisition mode for small tech co in Europe

Bangalore, Jun 29: Decorated with the 'Navaratna' Status, Defence electronics Public Sector Bharat Electronics (BEL) has switched on its radar scanning for small and medium technology companies, especially in Europe, for acquisition and set a global footprint.

BEL Chairman and Managing Director V V R Shastry in an interview to UNI said the first result would be known within this fiscal.

''Our radars are already on scouting for companies in Europe and other areas'' he said adding that the Company would also look towards the United States, when it opened up.

He said ''We have identified niche areas in technology we are in and are looking for such Companies''. The strategic fields were Radars, electro-optics, electronic warfare and microwave components''.

Funds would not be a restraint, he said adding that BEL which had hitherto been investing around Rs.150 crore annually, will accelerate it further to touch around Rs.500 crore. ''We are sitting pretty with a good cash reserve and a strong networth of Rs.2500 crore'', he added.

He said the company would also increase its association with Israel where the thurst would be on co-development and co-production, joint cooperation and if necessary joint ventures.

Aiming to emerge a two billion dollar company by 2010-11, BEL would remain tech savvy and has a focused vision to spread its brand globally, he said.
Mr Shastry said functional and financial autonomy for the company, empowered by the navaratna satus, had come up at the appropriate time, when BEL was facing the challenges of globalisation with multinational companies vying for a huge pie in Indian defence contracts. He said ''the navaratna status is a weapon for us to meet the future challenge and emerge a global player from being a national player'' he added.

On the offset policy of the government in defence procurement providing for 30 per cent imports from India by foreign suppliers, he said the Company had already started engagement with foreign collaborators in a significant manner. Experts from these companies have inspected the facilities in BEL and with some of them non-disclosure agreements have also been signed, he said adding that BEL had completed the process and was awaiting huge defence orders to fructify to move further ahead. BEL was aiming to garner at least 30 per cent of the 10 Billion dollar potential offered by the offset policy.

UNI