Defence Research & Development Organisation (DRDO) is India’s largest research organisation under the Ministry of Defence. It is actively working to develop defence technology in a variety of fields, including weaponry, electronics, combat vehicles, and aeronautics.
In light of geopolitical tensions, the Indian government is emphasising the necessity of self-reliance and indigenous growth in the defence industry. As a result, the Indian defence wing DRDO is expanding its capabilities by collaborating with other players in the defence industry in order to achieve and promote the aim of the “Make in India” initiatives by enhancing the self-reliance and indigenous capabilities of the defence manufacturing sector.
Here are four companies that have signed a partnership with DRDO in fiscal year 2023.
BEML Ltd.
Bharat Earth Movers Limited (BEML) is Asia’s second-largest manufacturer of earth-moving equipment for the mining, construction, and defence industries, as well as a company that manufactures coaches for the metro and Indian Railways.
With a market valuation of Rs 6,700 crore, the company belongs to the small-cap category. On July 11, shares were trading at Rs 1,600 a share, up 2.15 percent from the previous close price.
In February 2023, India’s state-owned Bharat Earth Movers Limited (BEML) signed a licensing agreement for the transfer of technology (ToT) with the Defence Research and Development Organisation (DRDO) for the development and delivery of trawl assembly for the T-72 and T-90 main battle tanks.
Larsen & Toubro Ltd
Larsen & Toubro Limited (L&T) is a leading producer and supplier of defence equipment and systems in India, as well as a company engaged in the engineering, construction, and manufacturing sectors.
With a market capitalization of Rs 3,46,789 crore, the company belongs under the Large-cap category. On July 11, shares traded at Rs 2,473.15 a share, a 1.15 percent increase from the previous close price.
Larsen & Toubro (L&T) secured a contract with DRDO in June 2023 to build two Air Independent Propulsion (AIP) System Modules for the Indian Navy’s Kalvari Class Submarines. This air-independent propulsion (AIP) technology improves conventional submarines’ underwater endurance and stealth.
Bharat Electronics Ltd.
Bharat Electronics Ltd is an Indian state-owned aerospace and defence company under the Ministry of Defence, It primarily manufactures advanced electronic products for ground and aerospace applications in Electronic warfare systems, tank electronics, and simulators.
The company belongs to the Large-cap category with a market capitalization of Rs 92,541 crore. Shares were trading at Rs 126.45 a share on July 11, up 2.85 percent from the previous close price.
Bharat Electronics (BEL) and the Aeronautical Development Agency (ADA), DRDO, have signed an MoU for the Advanced Medium Combat Aircraft (AMCA) programme. The MoU intends to use BEL and ADA’s complementary strengths and skills, with both companies cooperating on the design, development, authorization, manufacture, and delivery of aircraft for the Indian Air Force.
Paras Defence and Space Technologies Ltd.
Paras Defence and Space Technologies is a company that designs, develops, produces, and tests a wide range of defence electronics and space application products.
The company belongs to the small-cap category with a market capitalization of Rs 2,525 crore. Shares were trading at Rs 647.10 a share on July 11, up 2.78percent from the previous close price.
In June 2023, The DRDO awarded a contract of Rs 53 crore to Paras Defence and Space Technologies for the development of Optronic Periscopes, including installation assistance.
Written By Omkar Chitnis
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