My reading is it looks like they are still dependent more on Domestic business and its more with Govt, until and unless they go agressive in Sales on Exports and invest for long term (which is always missing in the case with most Indian companies example Ramco in ERP 20-30 yrs back)
To think of it , export Market they are mainly to Middle East, CIS , India friendly nations based on below inputs on concall in Feb 2024
To myself, its NATO countries which may move the needle on Growth from Make in US in FY27 onwards
Also, if you notice, they are Slow moving into Adjacent areas of Naval and AirForce Simulation and even Drones too , so to complete wide variety in Defense portfolio
Some insights came from Feb 2024 concall
One is from a strategic road map perspective, you are saying you will export to 50%, but
what’s our right to win against the global competition, because India, I think your positioning
is like you own the IP, your policies are favoring, but what’s our thought process regarding
that?
Ashok Atluri: So, this is what I said in the earlier question, somebody said how far. For the first 20 years of
our life, any preference from the Indian government actually, say two statements that were
made, I want the best for my boys, and the second was, there is no runner-up in war. And
these two sentences were used to buy the best equipment that was available. And they said,
this is the only way to go. And there is one country in the world that used to say that even if
my country’s company is 60% good, we will buy from them because that will allow me to
reinvest and make me a better system. And India has been following this policy forever, we
want the best, no runners-up policy. And this country-B, which was following this 60% is
enough, some kind of functionalities and I’ll buy only from my country’s company was
Israel. You see where Israel is today in terms of products and in terms of technology and
where India was some eight years back. Today, we are playing a catch up game. We are
trying to becoming number one in many categories. For a land for the simulators, India is
number one and of course, Zen is the major reason for that. But there are other things also
where we are emerging as number one. So, the export, when we go, the thing is that we are
absolutely the number one, only thing is there will be more political reasons. For example,
you cannot sell to any of the NATO countries if you are outside NATO. But these guys will
come and preach us, you should have open policy for importing defense equipment into
India. But now what is happening is that what about the other countries like Africa, Middle
East, CIS countries, Southeast Asia, they would love to buy from a country like India once
you are able to prove the quality and say, listen, our quality is better, we are competed with
them, and these are our products, they would love to buy from us. Because India is not only
in terms of quality and technology better than those companies but also we are a more
reliable partner to them. So we think that export is a very, very major growth and if we then
play cards, the growth projection that I’m giving will look like a joke after some time, they
will be much, much higher than what we are projecting.
Disc : Sold out recently, will look at add later once see clarity on acquisitions roadmap and Order book increase