Company Unit Signs INR 5250 cr MOU with Govt of Maharashtra for DEFENCE, STEEL& EV Sectors
*Not official on exchange yet in fact Mr. Krishnan Iyer, President & COO.resigned
1 Like
They are getting into semiconductor components business and take advantage of the government’s PLI scheme:
with focus on niche markets spanning sectors from consumer and automotive to industrial and high-end defence
We don’t want to pursue the large semiconductor play, which many players are already in. Instead, we’re focused on something that’s unique but has global potential
“The company is looking at an investment of around 4-5 thousand crores over the next two to three years, with the potential for even greater investment,”
Not much details available yet to understand the capital allocation rationale. There must be some kind of a backward integration opportunity. 4000-5000Cr in next 2-3 years means this can be another vertical on it’s own just like defence has turned out to be. With zero background in semi-conductors there is a certain amount of risk involved when it comes to execution, totally depends on the team they hire for this.
The wait for this lumbering asiatic elephant to gallop like a gazelle just got extended.
1 Like
A company that had promised to deliver an Israeli gun with over 60% indigenous content and ensure delivery within months is now struggling to substantiate these claims on paper. The company has requested an extension for submitting its proposal. Source: Alphadefence
No prizes for guessing which is the company. It is Adani defence which is trying to push the Israeli gun Athos. How can one explain, Kalyani having a prodcut(ATAGS) that meets all specifications and has cleared all trials hasn’t been given the order yet. Atleast in the area of defence the playing field must be level. ATAGS orders must been given out years back.
Risks faced by companies that are true IDDM(Indigenously Designed, Developed, and Manufactured) are:
- Babus/officers favouring imports for obvious reasons.
- Favoritism towards screwdriver-giri companies that just assemble and slap their sticker over someone else’s products.
2 Likes
Bharat Forge Update
- KSSL (Kalyani Strategic Systems Ltd) & L3Harris Technologies have signed an MoU for collaboration on advanced defense & security tech in India.
- The partnership aims to enhance indigenous defense capabilities and support critical security initiatives.
Bharat Forge | Financial Results
** Bharat Forge | Management Interview**
- Defence is a lumpy business, YoY growth will remain in double digits
- Significant miss in its Q3 revenue
- Challenges with the overseas subsidiary remain a burden but are expected to be resolved within six months.
Watch the management interview
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Kalyani Strategic Systems (KSSL) unveiled the RC 0912 military-grade rolling chassis at IDEX Abu Dhabi, showcasing its high-performance, customizable defense mobility solutions.
Bharat Forge | Management Interview
- Company has 2 manufacturing plants in the U.S. and are trying to optimise them to mitigate tariff impact.
- Management have no clarity yet on whether Class 8 truck components are part of the 25% tariff order.
- Adds, their defence orderbook currently is at Rs 10,000 cr.
1 Like
The weapon— a 5.56x45mm Close Quarter Battle (CQB) carbine— was declared the L1 bidder in the Army’s recently opened tender. The contract, valued at ₹2,000 crore, represents the largest single order for an Indian-designed, developed, and manufactured (IDDM) weapon system since the early 2000s, when the Army inducted the INSAS rifle.
2 Likes
Emergency order for Quick Reaction Fighting vehicle could turn out to be one of highest value items in this list. Kalyani M4 is a contender for the QRFV - heavy category, it has already received an order once under this category.
1 Like
Per unit cost comes up to Rs.47,000 i.e around USD 560. There are no details about any accessories for the gun that the order entails. Assuming, the order does not contain any accessories, comparing it to the cost of a equivalent gun, the Colt M4 Carbine:
https://www.guns.com/search?keyword=colt%20m4%20carbine
The basic model costs USD864 for one unit. Comparing the Kalyani gun to that, there is a 35 percent discount. Given the order is huge, is a 35 percent discount good enough to expect export orders of smaller size? Kalyani doesn’t have any branding yet unlike Colt.
2 Likes
Surprised to see lack of discussion on the company in last one year. Meanwhile, company’s defence business is getting stronger, it is jointing bidding for AMCA, has entered semiconductor value chain and so on.
Also its holding company -Kalyani Investment Company (KICL) also deserves to be tracked. It trades at 80-90% discount to its investment value in Bharat forge, Hikal and BF utilities.