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India will become one of the largest exporters of military hardware in the 10-15 years: Baba Kalyani

Discussion in 'Indian Defence Industry' started by proud_indian, Oct 23, 2017.

  1. proud_indian

    proud_indian 2nd Lieutant FULL MEMBER

    Feb 7, 2017
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    “India will become one of the largest exporters of military hardware in the next 10-15 years”: Baba Kalyani

    Baba Kalyani says Kalyani Group will turn over Rs 2,000 crore annually in defence manufacture

    Q. Large metals giants, like Krupp in Germany, have traditionally spearheaded the development of national defence industries. Is the Kalyani Group riding on such capabilities?

    We are the Krupp of India. In fact, two years ago, we beat ThyssenKrupp in their own backyard to become the world’s biggest supplier of metallurgical components. Before 2005, we were not even in this business. Today, we have 60 per cent of the global market in high performance metallurgical components.

    We are now global leaders in metallurgy. We make our steel, we forge it, we machine it, we heat treat it. Very few companies in the world can match us in manufacturing demanding products like gun barrels. Companies come to us from Europe for design, engineering, testing and validation of metallurgical components.

    Q. Artillery systems are your new thrust. What are the opportunities here?

    The Indian army needs artillery systems. The programme for 1,500 towed guns alone will be worth Rs 25,000-30,000 crore, at Rs 15-16 crore rupees per gun. The army’s website projects a requirement for 4,000 different guns – ultra-light, self-propelled, towed and others. This is an Rs 45,000-50,000 crore opportunity, of which we can snap up half, based on our capability and cost competitiveness.

    Q. How much revenue would this generate on an annual basis?

    About Rs 2,000 crore annually, counting replacement parts and maintenance.

    Q. How big is the Kalyani Group in defence today?

    This year we will do Rs 500 crore of defence business. This is basically components like wheels for tanks, armoured vehicle components and ammunition shells to Europe. But, once we are asked to manufacture, say 1,000 Advanced Towed Artillery Gun Systems (ATAGS), our defence turnover will rise quickly.

    Q. Is it wise to put so many eggs in the ATAGS basket?

    The ATAGS team has created a new benchmark in 155-millimetre artillery. For decades, no similar gun has been designed anywhere in the world. This is the first gun in 30 years designed afresh, from scratch. This will be a world-beater. Next year it will be in every Jane’s magazine. Nobody has a gun like this. With a range of 45 plus kilometres, it’s an amazing weapon.

    Q. You are also developing a titanium-based ultra-light howitzer (ULH). But the army has already bought these guns from abroad…

    The army has bought 145 M777 guns from BAE Systems. By March [2018], our indigenous ULH will be ready to compete with that gun. The army needs many more.

    Q. Has MoD conveyed interest?

    When [former defence minister] Manohar Parrikar visited us to inaugurate our plant, he was interested. We showed him the model of the ULH we were building and he assured us: “For all future guns we will come to you.”

    But we’ll have to pass evaluation and we are ready to go through the process. We are very confident. It is not just for India, I’m sure our ULH will find buyers worldwide. Even Japan is interested in light artillery.

    Q. Private defence firms like yours are relying heavily on being nominated as “strategic partner” (SP). What are your views on the new SP policy?

    Honestly, I think we need a lot of clarification about the SP policy. I’ve heard three versions of the SP model. But, looking at it positively, defence production will get a boost.

    Q. There is criticism that the SP policy is exclusionary, with nominated firms gaining everything, and the other left without orders. For example if you are chosen as SP for land systems, you get excluded from aerospace manufacture…

    This is not correct. We can be a strategic partner for one segment, and a development partner, or Tier 1 or Tier 2 vendor for another. For building a fighter in India, at least 150 companies will be needed. There is space for all, not just the strategic partner.

    Q. So the Kalyani Group is betting big on defence?

    In the next 10-15 years, India will become one of the largest exporters of military hardware. It may not be fighters or highly sophisticated stuff, but will include equipment like land systems, artillery, ammunition, missiles, bombs; we will master these technologies quickly, and do it cheaper than anybody else. The Kalyani Group will be a big part of this.

    Last edited: Oct 23, 2017
    Wolfpack, Blackjay, sangos and 4 others like this.
  2. proud_indian

    proud_indian 2nd Lieutant FULL MEMBER

    Feb 7, 2017
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    Metallurgy skills are Kalyani Group’s springboard to defence production

    The Kalyani Group's Bharat 52 gun, which is undergoing test firing at present

    By Ajai Shukla
    Business Standard, 23rd Oct 17

    Indian engineers, who struggled for decades to design high-tech weaponry like the Tejas fighter and Arjun tank, are enjoying unusually quick success in developing what promises to be a world-class artillery gun.

    At firing trials on September 4, prominent defence firm, Tata Power (Strategic Engineering Division), was cock-a-hoop when its Advanced Towed Artillery Gun System (ATAGS) fired three shells to a world-record 47.2 kilometres – three kilometres longer than contemporary guns.

    But Tata Power (SED)’s record lasted just one day.

    The next morning, a second ATAGS gun, which the Kalyani Group has built according to a parallel development strategy, broke that record by achieving a range of just over 48 kilometres.

    Both guns achieved this record-breaking performance with “high explosive – base bleed” (HE-BB) ammunition, which is optimised for longer ranges.

    The Defence Research & Development Organisation (DRDO), which conceived and designed the 155-millimetre, 52-calibre ATAGS, has fed the design to Tata Power (SED) and the Kalyani Group. Based on those requirements, the two companies have built and are test-firing competing gun prototypes.

    While Tata Power (SED) has worked with the DRDO earlier, the new partnership with Kalyani Group is proving to be an inspired choice. The Pune-based firm has engineered a barrel and breech so good that the Tatas are using it in their gun as well.

    While Kalyani Group is relatively new to modern defence systems that incorporate advanced information technology, its flagship company, Bharat Forge – the world’s largest forgings manufacturer – is a global leader in metallurgy expertise.

    Metallurgy is fundamental to any defence industry, since it underpins the construction of guns, armoured platforms and warships. The 430-year-old German metals giant, Krupp, spearheaded the emergence of Germany’s defence industry, and leads it even today. The Kalyani Group believes it can do the same for India.

    Says the Kalyani Group’s hard charging supremo, Babasaheb (Baba) Kalyani: “Our basic technology competence lies in metallurgy. We make our steel, we forge it, we machine it, we heat treat it. Very few companies in the world can match our skills in products like gun barrels.”

    Over the years, Kalyani Group has integrated upstream as well as downstream from Bharat Forge. Pune-based Kalyani Carpenter and Kalyani Steels make alloy steel for the ATAGS barrel. Another group company, Mysore-based Automotive Axles, specialises in “drive lines”, on which the gun is mounted. A high-tech fabrication shop in Satara assembles the gun.

    Business Standard visited the Kalyani Group facility in Pune, where the company is developing several artillery systems at its own cost, in order to develop skills. The guns are built in an artillery factory bought from Swiss defence firm, RUAG, and shipped in entirety from Austria to Pune.

    Its produces include the 155-millimetre, 52 calibre Bharat 52, which is undergoing test firing; a 45 calibre version of the same gun; a truck-mounted 105-millimetre gun called the Garuda, which the army found so promising it financed it through the Army Technology Board; and a 155-millimetre, 39 calibre, titanium ultra-light howitzer that Kalyani is pitching against the BAE Systems M777 gun that India has contracted for.

    “The Indian Army has already bought 145 M777 guns. But, by March [2018], my indigenous ultra-light howitzer will be ready to compete with the BAE Systems gun”, promises Kalyani.

    Kalyani Group engineers who work on ATAGS say its exceptional range stems from its larger chamber – 25 litres, compared to 23 litres in similar guns. This allows the gun to be fired with more explosive, propelling the warhead further. To absorb the higher “shock of discharge”, Kalyani Group says it has built its barrel and breech with a complex new metallurgy.

    Making ATAGS an easy-to-handle gun is an unprecedented all-electric system, in which machinery does what gun crews do manually in other guns: handling heavy ammunition, ramming it into the chamber and opening and closing the heavy breech.

    Its one-of-a-kind, six-round “automated magazine” loads and fires a six-round burst in just 30 seconds. Most other guns in service have three-round magazines that must be reloaded after firing three rounds.

    Firing off six rounds in 30 seconds is an important capability since artillery causes most casualties in the initial burst of fire, which catches enemy soldiers in the open. Once they dive into their trenches, artillery fire is less effective.

    “The ATAGS team has created a new benchmark in artillery. For decades, no new artillery gun has been designed anywhere in the world. This is the first gun in 30 years designed afresh, from scratch”, points out Baba Kalyani.

    The next test for the gun is “cold weather trials” in Sikkim in December. Before then, the gun will undergo some modifications. To expedite trials, Tata Power (SED) and Kalyani Group will start the building of three more ATAGs prototypes.

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  3. Hellfire

    Hellfire Devil's Advocate THINKER

    Apr 16, 2017
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    As for the ULH, Indian Army will be looking to field much greater numbers for the formations in Field, which at present are using the 105 mm IFG.

    I am hopeful that the political will to allow these firms to thrive will not be withdrawn with a change in government (if at all). Long we have tolerated non-performance by OFB and DPSUs. For once, we have Indians leading from the fore!

    Great going!!!
  4. lca-fan

    lca-fan Major SENIOR MEMBER

    Sep 9, 2015
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    A pleasant relief from reservation quota chaap employees of DPiSUs.

    During Kargil war ordnance factory was unable to manufacture 155mm rounds at that time also Kalyani steel delivered 100000 shell with in a month. Even last year ordnance factory delivered 7500 approx rounds. This is the work culture of reservation CHAAPs.
    Wolfpack, Bloom 17 and Hellfire like this.
  5. randomradio

    randomradio Colonel REGISTERED

    Nov 22, 2013
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    Yo, @vstol jockey. Prove him wrong. :D
    Angel Eyes likes this.
  6. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Mar 15, 2011
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    For last fifteen years,I am hearing that India has potential to become a hub of MRO and Transit hub for air travelers over taking ME Asia hubs like Dubai etc. The potential is there due to our manpower and strategic location as we are situated midway between Asia, Europe and Africa.BUT my aunt wud have my uncle if she had balls and a dick? Who will take care of taxation and rules and implementation of them?
    Every seminar about India's potential will end with tons of Daaru and gali-galoch for our system of governance. Yehi hota raha hai aur hota rahega.

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