Bharat Forge is advancing its plan to transfer its entire defence division to its subsidiary, Kalyani Strategic Systems Limited (KSSL). On July 31, KSSL received a perpetual licence from the Department for Promotion of Industry & Internal Trade (DPIIT) to manufacture various defence products.
KSSL will produce these defence items at its Jejuri facility in Maharashtra. This approval allows KSSL to take part in future defence programs. KSSL has already been working with international partners on export orders worth $155.5 million.
Last August, KSSL exported India’s first home-designed, developed, and manufactured artillery system and has received multiple orders for ammunition shells, securing its production capacity for the next 2-3 years.
Bharat Forge has relied on its defence sector to boost its order book and revenue. In FY24, the company secured around Rs 4,500 crore in defence orders out of a total of Rs 6,300 crore. This led to a four-fold increase in defence revenue, reaching Rs 1,561 crore, with over 90 percent of this from exports. Bharat Forge has a strong order pipeline that ensures earnings for the next three years.
In its July annual report, the company stated, “We are now building the capability to manufacture over 250 guns and 1,000 vehicles per annum. Our manufacturing ecosystem will be structured to exceed this capacity should the demand rise.”
In FY24, India’s defence production reached Rs 74,739 crore, with private companies contributing 22 percent, valued at Rs 16,411 crore. Defence exports grew to Rs 21,083 crore, a 32.5 percent increase from the previous year. The Defence Ministry aims to increase production to Rs 3 lakh crore and double exports to Rs 50,000 crore by FY29.
