MSMEs And Start-ups Have Huge Opportunities In Defence Sector

PUNE: Several policy initiatives undertaken by the Government in the past few years to encourage indigenous design, development, and manufacture of defence equipment, to promote self-reliance in defence manufacturing & technology along with the rise of future smart technologies present MSMEs and Start-ups with huge opportunities opined various experts at the MSME conclave held in Pune. Federation of Indian Chambers of Commerce and Industry (FICCI) in association with the Department of Defence Production, Ministry of Defence, Govt of India organized a Defence MSME Conclave under the MoD Scheme for Promotion Of MSMEs in Defence on Friday, at Ammunition Factory, Khadki, MIL, Pune. The half-day program brought all relevant stakeholders together on a common platform to develop Defence MSMEs / Start-ups Industry which in turn could strengthen India’s indigenous defence production and defense exports.

The keynote address was delivered by Mr. Surendra Prasad Yadav, Joint Secretary (Land Systems), DDP, MoD, Government of India. Mr. Neelesh Tungar, Co-Chair FICCI Homeland Security Committee & COO, Bharat Forge Limited gave the welcome remarks followed by a special address by SK Rout, Director Operations, Munitions India Ltd, Mr. MK Gupta, CMD, Star Wire (India) Ltd, Partha Roy Chowdhary, Commercial Lead India, Lockheed Martin India Private Limited. Anil Kulkarni, VP and Head of Supply Chain Management at L&T Defence will deliver the vote of thanks. Mr. Praveen Kumar, DoG DOMW DOP Ministry of Defence also participated in the deliberations.

Mr. Surendra Prasad Yadav, Joint Secretary (Land Systems), DDP, MoD, Government of India, said that the pandemic had resulted in disruption in the supply chain in the defence industry too but the industry demonstrated a great level of agility. Self-reliance in defence is non-negotiable. Durable national security requires credible defence capabilities, development of infrastructure, strategic technology management, and establishment of a self-reliant defence industry at the forefront of government policy. After the clarion call by the Hon. Prime Minister on ‘Armanirbhar Bharat ‘ the country has aggressively moved in this direction of being self-reliant and a global supplier. Product-linked Incentive schemes have been launched by the Government to increase production in the country. This offers a great opportunity for MSMEs

In his welcome address inaugural address will include experts from the field including welcome remarks by Mr. Neelesh Tungar, Co-Chair FICCI Homeland Security Committee & COO said that indigenous defence and a vibrant defence ecosystem would require existing MSMEs to scale up and diversify the requirements in terms of quality, capacity, skillsets, and manufacturing capabilities. Large-scale system integrators like defence PSUs, and the private sector companies for OEMs are critical in terms of hand-holding and also looking at how we develop the whole ecosystem in our country.

SK Rout, Director of Operations, Munitions India Ltd, said that a number of conclaves have been conducted over the last year and this is the fifth such conclave organized at Ammunition Factory, Khadki. MSMEs have a huge role to play in the growth process. To succeed together we have to become cost competitive with on-time deliveries and the topmost priority being quality. We have ensured timely payments for the sustenance of business as well as technical support for our suppliers.

Mr MK Gupta, CMD, Star Wire (India) Ltd, said that manufacturing defence products require a variety of raw materials out of which certain materials are critical and strategic in nature. In order to achieve substantive self-reliance in defense manufacturing there is a need to reduce dependence on imports of these materials and to encourage domestic manufacturers through policy and procedural interventions.

Partha Roy Chowdhary, Commercial Lead India, Lockheed Martin India Private Limited. said that MSME and OEM relationship is critical. Referring to the restrictions on the import of critical materials in most countries, he said that we need to create demand and look at the supply side. Defence industry needs to have a secondary source like automobiles to supply these items and needs to certify the production. Innovation, quality, value chain, and holding of OEMs must be our focus.

Anil Kulkarni, VP, and Head of Supply Chain Management L&T Defence delivered the vote of thanks. He said that continuous efforts by the Government and all stakeholders are helping move us towards our goal of ‘Atmanirbhar Bharat’ by developing a capable supply chain which will also help us become an export powerhouse.

The conclave deliberated on various crucial topics including the Indigenisation of Critical Materials for Defence, Handholding of the SME sector to achieve indigenization of critical components, Prospects for Start-Ups, etc.