MTAR Technologies, a leading player in India's defence equipment manufacturing sector, sees the business potential growing significantly as a lot of new opportunities are emerging in the space.

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According to MTAR Tech's managing director Srinivas Reddy, the defence sector has the potential to expand significantly and he expects the company's current market share of 4.35 percent in this space to a promising 15 percent or even more. He highlighted that the anticipated surge in activity within the defence space, signals favourable trends and opportunities for all the industry players.

“We will see a lot of traction coming in moving forward,” Reddy said.

“In defence, right now, we are below 5 percent but we have the capability of growing it much higher to 15-20 percent or even more,” he added.

The defence pack surged ahead of PM Modi's visit to the US on June 19th as there are multiple defence deals on the radar. The defence sector is a key beneficiary of the Make- in-India and Atmanirbhar Bharat policy as self-sufficiency is a key focus for the Indian central government. To add to it, China +1 strategy works in favor of Indian defence equipment makers.

Indian PSUs have been working on developing efficiencies and executions, which is reflected in the large executed order books of the industry players.

Reddy's comments shed light on the need for proactive measures in order to capitalize on the anticipated growth in the defence sector. One crucial aspect he emphasized was the necessity for the company to obtain a defence license to collaborate with key procurers such as the Navy and Air Force.

“We have applied for the defence license. It is a very long process. Once we have the license, we will be able to address the end users directly like the Indian Air Force, Navy etc. so it has got a great opportunity but we should also remember that technology is also very important here in terms of the latest systems that we want to develop,” he said.

By partnering with these procurers, companies can gain access to a wide range of defence projects, contributing to their growth and success.

The defence industry holds immense potential not only for established players but also for new entrants. As the sector witnesses an upward trajectory, both domestic and international companies can seize the opportunity to bolster their market presence and contribute to the nation's defence capabilities. The increasing focus on indigenization and self-reliance in defence manufacturing provides a conducive environment for companies to forge strategic alliances and foster innovation.

Reddy's optimistic forecast serves as a catalyst for companies to prepare for the impending surge in defence-related activities.

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(Edited by : C H Unnikrishnan)