The Defence Acquisition Council has given approval to procure equipment worth Rs 27,000 crore domestically. One of the beneficiaries of this could be L&T Defence.
Speaking to CNBC-TV18, JD Patil, Whole-time Director, L&T Defence said, “Out of the Rs 28,000 crore which have been cleared, about Rs 27,000 crore will happen in India. For L&T Defence, directly we should be bidding somewhere around 12,000-13,000 crore out of it; so roughly about 50 percent.”
“If we are looking at the New Generation Offshore Patrol Vessels (NGOPVs) or for that matter the modular bridge or the combat Unmanned Aerial Vehicles (UAVs) which are being looked at by the navy, and BRAHMOS are programs we certainly will directly get involved,” he added.
From the Rs 13,000 crore L&T Defence will bid, Patil expects to surely win about Rs 11,500 crore worth of bids.
“One program which is our own product which is now getting into production that is about Rs 2,500 crore which certainly is ours. The NGOPVs is a program where we have world beating price point and that is another one we should have an extremely good chance. That is a Rs 9,000 crore program. So between the two, about Rs 11,500 crore I would say we have an extremely high chance of winning.
On growth, he said, “We have an assurance that there would be a certain volume of purchases which will happen from Indian industry. If that is precisely what one has to look at, if I look at the next 5-6 years, the private industry, someone of our maturity, should grow in the defence space at least at about 18-20 percent CAGR.”
Watch the video for more