The Rs 6,500-crore Godrej group plans to push its military equipment supply business aggressively. For now, it would be making machineries and equipment for the armed forces.
MUMBAI: The Rs 6,500-crore Godrej group plans to push its military equipment supply business aggressively. For now, it would be making machineries and equipment for the armed forces, but expects huge earnings from the nuclear business once the Indo-US civil nuclear deal is cleared.
Jamshyd N Godrej, chairman, Godrej and Boyce Manufacturing Company Ltd told DNA Money on the sidelines of the Confederation of Indian Industry’s Retail Brand 2007 summit on Thursday, “We have plans to pursue the defence business aggressively as the defence sector is hotting up. We have a separate team to handle defence business and will reveal future course of action at the appropriate time.”
Godrej and Boyce is already a supplier of airframe sections for the Brahmos missile, besides equipment for satellite launch vehicles built by the Indian Space Research Organisation (ISRO).
The group also supplies equipment for the nuclear sector, both civilian and military, and also equipment for refineries.
Industry experts feel defence is set to become big business for Indian companies. The defence ministry proposes to give contracts worth Rs 30,000-crore for defence production to private players in the coming years. No wonder a number of private players are reaching for a piece of the pie.
Since the norms for private sector participation in defence deals was relaxed, companies like L&T and Tatas have acquired licences for making defence related products.
The Tata group is looking to consolidate its defence businesses under one entity. Among the automakers, M&M and Ashok Leyland supply vehicles to the military, too.
A couple of foreign players, such as Lockheed Martin and Rolls Royce are also eyeing the country’s defence sector, even as top-notch international players like EADS, Boeing, Rolls Royce are scouting for Indian partners.
Prior to opening up of the sector in 2001, the government used to place defence orders only with PSUs and foreign players. Today, it allows foreign direct investment up to 26% in defence projects.
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