Balu Forge Industries Ltd highlights Defence Production as the next catalyst for its growth
(Time Zone: Arizona, USA)
The Indian Government has given a great Impetus to Domestic Factories to take part in Defence Production in the recent years in a strategy to make the Indian Defense Industry self reliant / 'Aatmanirbhar' . A large part of the procurement program has also moved to the Private Sector with a considerable investment made by the Indian Industry to support the Indian Defence Production. The Government had also in 2020 barred a majority of Import Procurement by the Defence Companies giving a further rise to Home Grown Companies actively participating in the Indian Defence Sector.
There has been a strong focus at Balu Forge towards building readiness for the needs of India as well as a Hub for the Global Defence Industry. We are already an approved vendor to a majority of the 41 Ordnance Factories part of the Ordnance Factory Board in India & for the supply of 182 Components to the above factories.
A large part of the Capital Investment for the next 10 years is planned towards Defence Production with also key Joint Ventures/Technology Partnerships in the Pipeline. The key areas planned in the coming years are Artillery, Undercarriage parts for Armored Vehicles, Weapons & Ammunition for Light & Heavy Regiments and Forged & Machined Components for the Engine Division.
There is a Dedicated Unit planned for Ammunition & Advance Defence System Production in partnership with prominent players in the Global Defense Production Mix. In Addition to the Dedicated Defence Production Facility, the R&D & Innovation Campus in Belgaum, India will spearhead the strategy laid down to build Advance Defence systems & solutions. The R&D unit will work through a 4000 Square Meter Technology Center fully equipped with State of the art Equipment. The Dedicated Defence Unit is set to commercialize production from Q4 FY 2021/22 & the R&D Center from Q2 FY 2021/22.
We have also secured & successfully supplied for over 5 years to Defense Forces in two prominent European Countries and executed supply as a single source to these nations. There will continue to be a strong focus on further expanding the reach & customer base amongst more Defense Organizations globally & building a strong Defence Production Center for the Local & Global Defence Industry.
Shares of Balu Forge Industries Ltd was last trading in BSE at Rs.212.8 as compared to the previous close of Rs. 213.9. The total number of shares traded during the day was 236 in over 7 trades.
The stock hit an intraday high of Rs. 224.5 and intraday low of 212.8. The net turnover during the day was Rs. 50309.