DeAR ShARehOLDeRS,
At the outset, I would like to extend my gratitude to each of you for
your continued support and investment in BDL. Your unwavering support and faith in us
inspires us to achieve new milestones of success.
I take pleasure in sharing with you the 53rd Annual Report of BDL, a
company built over more than five decades of spirited and perseverant efforts by a highly
skilled work force.
Despite the operational and supply chain disruptions caused by the
current global scenario, BDL?s performance throughout the financial year 2022 23 has
been impressive, bearing testimony to the hard work put forth by all the stakeholders
associated with the company.
The Government of India?s initiatives to make India self-reliant
in providing state-of-the-art weapon systems to the Indian Armed Forces and clearance for
export to Friendly Foreign Countries (FFCs) have opened plenty of opportunities for BDL to
grow and expand into the market. BDL has set the path to work towards more opportunities
and live I take this opportunity to share the performance highlights during the last
financial year and the future outlook for BDL. fInanCIal and performanCe hIghlIghts of
the year:
BDL achieved productionof 2508.43 crore as against 2901.76 crore of
previous financial year and also achieved sales turnover of 2489.39 crore as against
2817.40 crore of previous financial year.
BDL has achieved a profit after tax (PAT) of 352.17 crore as against a
profit of 499.92 crore reported in the previous financial year. I am extremely pleased to
inform you that BDL continues to maintain a consistent dividend payment. Your Board has
recommended a final dividendof 1.20perequityshareof 10each,amounting 21.99 crore. It also
gives me great pleasure to inform you that BDL has already paid an interim dividend
of 8.15 per share in February 2023. The total dividend for FY 2022 23 declared by the
company is 9.35 per share (face value of 10 each).
PeRfORMANCe ViS-A-ViS MoU:
In terms of the Memorandum of Understanding (MoU) signed with the
Department of Defence Production, Ministry of Defence (MoD), Government of India, BDL has
been rated "Very Good" for the year 2021 22, and for 2022 23, it is under
evaluation. new partners In pursuItof teChnologyupgradatIon:
Technology upgradation has always been an area of priority for BDL in
order to keep pace with the current requirements in the global defence industry. In
pursuit of this, BDL has entered into MoUs or teaming agreements with several entities,
like: MoU with MBDA, France, for the manufacturing of Mistral missiles in India for supply
to the IAF.
MoU with a startup, i.e., M/s New Space Technologies, Bangalore, on
product development, including integration of BDL payload(s) onto the UAV platforms of M/s
NRT for military applications, technical support, armament support, and infrastructure
support.
MoU with BHEL for jointly working on the emerging opportunities in
the Indian defence and aerospace market, especially the space sector.
MoU with Raphe mPhibr Private Limited, Noida, to work together on
UAVs and launch systems for the ULPGM project. MoU with Dassault Aviation Pvt. Ltd.,
France, for the integration of BDL weapon systems like Astra and SAAW on Rafale aircraft
for the Indian Armed Forces and future export markets MoU with Thales Belgium S.A. and
Thales India Private Limited for the setting up of manufacturing facilities Rocket and its
major components in India, to be a part of Thales global supply chain for future
requirements of Thales export markets and also for the India market.
MoU with BARIJ Dynamics LLC ("AL TARIQ"), Abu Dhabi,
United Arab Emirates, to cooperate together for the manufacturing of PGM kits in India,
both for India as well as the export market.
MoU with BULTEXPRO LTD., Bulgaria, for setting up the manufacturing
facilities for 122mm GRAD BM ER and non-ER rockets in India, including ToT.
BDL has also entered into a Licencing Agreement for Transfer of
Technology (LAToT) with Research Centre Imarat (RCI, DRDO
Lab) for the manufacturing of Ceramic Radomes (GELCAST Process). dIVersIfICatIon
plan:
As part of BDL?s diversification plan, we have identified new
verticals such as guided bombs, drone-delivered payloads, warhead manufacturing, products
for space applications and propellants. These endeavors are expected to create new
business opportunities Apart from missiles, which have been the mainstay of BDL,
infrastructure is being set up in the Jhansi plant for the manufacture of rockets and
propellants. Production will commence on receipt of orders from the Indian Armed Forces
with ToT from the foreign technology partner. new InfrastruCture:
To support our growth, BDL has undertaken initiatives to set up new
infrastructure facilities, including the RF SEEKER facility, Warhead Manufacturing
Facility, SMT Line and High Computing Testing Facility, State-of-the-Art Stores and
Environmental Test Facility, and a modular Automatic Storage and Retrieval System
facility. These initiatives will enhance our self-reliance and contribute to BDL?s
Atmanirbhar campaign.
QualItysystems :
Being a missile manufacturing company and producing single-shot
devices, the quality of the product is of paramount importance, and our products should
work the first time and every time.Hence, these products require stringent quality
standards and a high degree of reliability. In pursuit of this objective, BDL has adopted
and maintains international quality standards. As you are aware, the production units in
Kanchanbagh and Bhanur are already certified with the International Aerospace Quality
Management Standard AS 9100D. BDL?s corporate office has been re-certified with ISO
9001:2015 by the certification body, M/s Novo Star Management Systems Solution India Pvt.
Ltd.
new InItIatIVes:
In the spirit of Atmanirbharta in defence, BDL has taken up many new
initiatives during the year. In this endeavour, Hon?ble RM inaugurated the Warhead
Manufacturing Facility at the BDL Bhanur Unit, the Seeker Manufacturing Facility at the
BDL Kanchanbagh Unit, and the Central Storage Facility at the BDL Visakhapatnam Unit.
ReSeARCh AND DeVeLOPMeNt (R&D):
Research and Development (R&D) remain crucial for BDL, and we
continuously work on new product development and the upgradation of existing products to
meet customer requirements.
Corporate goVernanCe:
BDL has a well-established relationship between Company?s
Management, its board, its shareholders, and other stakeholders. With its well-laid-out
principles,policies,procedures, responsibilitiesand accountabilities, BDL has the
perfect means clearlydefined of attaining its objectives and systems in place for
monitoring the performance. BDL conducts business with the highest ethical standards and
prohibits all forms of bribery and corruption across all units of the organisation. During
the year under review, no such instances of bribery or corruption were reported.
BDL?s activitiesare monitored by several external agencies like
the Statutory Auditors, Comptroller and Auditor MoD (Dept. of Defence Production), etc.
I am glad to inform you that BDL has been consistently rated
"excellent" by the MoD in the Corporate Governance category, which itself is a
testimony to the established mechanisms, relations, regulations, and processes by which it
is
CORPORAte SOCiAL ReSPONSiBiLitY AND SUStAiNABiLitY DeVeLOPMeNt:
BDL is conscious of its responsibilities towards society, and as per
the provisions of the Companies Act, 2013, BDL is spending 2% of the average net profits
of the immediate three preceding financial years towards CSR activities. The core areas of
focus under CSR are healthcare, nutrition, education and literacy, skill development and
sanitation, PM TB Mukth Abhiyan, Sahara hostel for Veer Naaris, etc. BDL, as per DPE
Guidelines, has also ventured into aspirational districts and underdeveloped areas in
Telangana and Andhra Pradesh to undertake corporate social responsibility (CSR).
Some of the major projects taken up during the year are as follows:
Establishment of Molecular Oncology Dept. and Procurement of
equipment at MNJIO and Regional Cancer Centre, Hyderabad, Telangana State, with an
estimated budget of 100 lakh, wherein BDL is supporting up to 75 lakh.
Fitment of Cochlear Implants to Children with Hearing Impairment
through ALIMCO in Telangana and Andhra Pradesh, with an Outlay of 335 lakh Distribution of
aids and appliances, including Artificial Limbs and Callipers, to Persons with in
Aspirational Districts of Telangana, with an estimated budget of 50 lakh Awareness
creation and supply of sanitary napkins to girl students of government an outlay of 100
lakh.
Construction of Panah (Sahara) Hostel for Veer Naaris (Naval
Widows) with an estimated budget of supporting up to 200 lakh Supporting the Dokra and
Terracota Craft Development Project at Kumurumbheem Asifabad (Aspirational District),
Telangana, with an estimated budget of 76.35 lakh Contributed for Pradhan Mantri TB Mukth
Abhiyan towards nutrition support to TB patients at Jayashankar Bhupalpally and Mulugu
District of Telangana State to the extent of 35 lakh. wayforward :
The year 2022 23 ended with turnover of 2489.39 crore as compared to
2817.40 crore of previous financial year. The execution of orders got hampered due to
various operational and technical challenges such as design improvements, delays in
receipt of critical electronic components etc. BDL is taking all steps to overcome these
constraints and looking forward to execute the orders within the given time frames of the
contracts.
In addition to above, BDL has now started concentrating on export
opportunities. Even though our main customers are the Indian Armed Forces, Company is
exploring new markets for immediate growth. Many leads have been received from friendly
foreign countries which are been pursued vigorously to convert them into firm orders. In
order to sustain business and grow, BDL is making all efforts to ensure that these orders
are executed within the delivery schedule with high quality at a competitive price. The
government is putting a lot of restrictions on imports and giving impetus to reduce
foreign importance of enhancing indigenization for self-reliance is noted. In R&D, we
have increased the expenditure and extended all the support. Emphasis is being laid on
timelines for R&D Projects. Accordingly, marketing efforts are put in place to
generate revenue from successful R&D Projects. future outlooK:
BDL is going to witness high growth in the coming years. As on 01
April, 2023, the order book position of BDL is 20054 Crore (Net). We are further able to
consolidate our order book with more orders that are in various stages of finalisation and
are expected to materialise in 2023 24.
The positive Indigenization List brought out by the Gol in terms of
restriction of imports in different phases opportunity to get continuous orders for these
products for BDL from the Indian Armed Forces in the ensuing years, which will help to
improve the BDL order book as well as help further growth of the company.
In the export market, there is interest in BDL?s products like
Akash Weapon Systems from potential buyers. BDL is in the process of converting the leads
received into orders. In order to further consolidate the order book of the company, there
is a huge emphasis laid by BDL on the necessity of realising export orders, and the
company is pursuing the same aggressively.
BDL is confident in the realisation of the potential orders due to the
policy initiatives of the government and the ease of doing business in the country.
BDL is also investing in R&D activities both in-house and in
association with DRDO for various programmes. BDL is also entering into various agreements
with foreign OEMs, both for manufacturing in India as well as joint development
programmes.
BDL?s future prospects appear promising, buoyed by a robust order
book position and a stream of anticipated orders in the pipeline. In addition to that, the
right support and policy initiatives from the Government of India further bolster the
positive outlook ahead for your Company. aCKnowledgement:
I wish to place on record, on behalf of the entire BDL family, our
sincere thanks and gratitude to investors and shareholders who have reposed trust in this
company and continued to support us in all our endeavours through this financial year. I
also look forward to the same support from investors in the years to come.
My special thanks also go to the MoD, Government of India, DIPAM, State
Governments, Customers, Inspection Agencies, DPSUs, our vendors, Employees of BDL and all
the agencies involved directly or indirectly in the growth of this company.
I also thank the board members for their valuable guidance and
encouraging support in the functioning of the company Finally, let me assure you that BDL
is poised to reach greater heights. The entire fraternity of BDL will strive to achieve
the desired results and exceed the investors? expectations.
I am proud of what we?ve accomplished together in the past few
years, and I am even more optimistic about the opportunities ahead.
Jai hind!!!
|
Cmde A
Mahavarao (Retd) |
|
Chairman and
Managing Director |
|
DiN: 09808949 |
Date : 04 August 2023 |
|
Place : hyderabad |
|