Complete SWOT Analysis of Bharat Dynamics – Manufacturers Of Ammunitions & Missile systems

Quick Stats on Bharat Dynamics

Chairman	Commodore Siddharth Mishra
Year Founded	1970
Origin	Hyderabad, Telangana, India
No. of Employees	3030+
Company Type	Public
Market Cap	Rs 13,100.94 Crore (2022)
Annual Revenue	Rs 803.91 Crore (2021)
Net Income/ Profit	Rs 213.26 Crore (2021)

 

 

Products By Bharat Dynamics  

Bharat Dynamics had been in business for over four decades and primarily deals in:

• Surface to Air Missiles
• Air Defence Systems
• Heavyweight Torpedoes
• Air to Air Missiles
• Defence Equipment Manufacturer
• Underwater Weapons and Mines

Competitors of Bharat Dynamics 

Bharat Dynamics compete on a global level with several other manufacturers, of which its top competitors include: 

• Diehl Defence
• High Impact Technology
• BAE Systems Bofors 
• Global Industrial Defence Solutions

Now that we understand the company’s core business, let’s delve into the SWOT Analysis of Bharat Dynamics. 

SWOT Analysis of Bharat Dynamics 

A SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats that a firm faces. Bharat Dynamics may evaluate its business and performance against rivals and the industry as a whole using this tried-and-true management model.

It’s a great tool for figuring out where the firm shines, where it falters, devising countermeasures, and figuring out how to expand.

To better understand the SWOT analysis of Bharat Dynamics, refer to the infographic below:

Infographics Image

So let us start by expanding on the strengths of Bharat Dynamics:

Strengths of Bharat Dynamics 

The distinctive qualities that provide a company with an edge in acquiring greater market share, attracting a larger audience, and maximising profitability are essentially its strengths. The following are Bharat Dynamics ’ strengths: 

• Company Position: Bharat Dynamics Limited is one of India’s leading in the area of complete solution providers for the Indian Armed Forces and the last 60+ years they have been creating high-quality defensive products benefiting the development of a home market defence industry. The company has 4 manufacturing plants across India precisely producing defensive products that can easily cater to the growing needs of the Armed Forces.
• Business Model: The business model in which Bharat Dynamics deals is not easy to be copied by anyone. Bharat Dynamics gets a full competition advantage in the defence and explosive sector due to fewer competitors.
• The Sector of Presence: Bharat Dynamics not only deals in the manufacturing of defence and weapon products but has also entered into the arena of the refurbishment of old missiles. Presence in almost every essential area opens up revenue streams.
• AI-Based Technologies: Manufacturing technologies and processes to state-of-the-art including industry 4, helps Bharat Dynamics to maintain the highest quality standards. It has also started undertaking the development of products for the Armed Forces with AI Technologies.
• Experience & Innovation: Bharat Dynamics’ extensive experience, expertise and innovation edge are rooted in a strategic blend of talented manpower and technological prowess. They use their rich experience to create sustainable value.
• Product & Service Portfolio: Bharat Dynamics is the market leader when it comes to a variety of products and services. Honestly, the company deals in every nook and corner of defensive products and services including sectors like defence, explosives, and missiles, among others.
• Sustainable Innovation: Bharat Dynamics employ a comprehensive suite of robust best practice policies, and are committed to the safety, health, and wellbeing of their people, communities and the environment. Such dedication and commitment to sustainability show the organisation’s involvement in CSR works.
• Government Support: Bharat Dynamics get immense support from the government of India because the industry deals in the manufacturing of products for India’s defence sector and to keep the sector top of the line, the government has to finance such industries all the time.

Weaknesses of Bharat Dynamics 

Weaknesses are negative aspects and attributes which have little control over. These are the areas where the business needs to improve to remain competitive.

• High cost in replacement of Established Expertise: Bharat Dynamics Ltd’s knowledge base is entrusted to a small number of people, and replacing them will be difficult under the current circumstances.
• Shortage of Technical & Financial Resources: The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow its service locally and globally.
• Strong Government Regulations and Policies: There are strong government rules and regulations that make operational efficiency low and create a hindrance in the working of a company.
• Confusing Portfolio: Bharat Dynamics have expanded its products and services portfolio in an enormous sector and it is difficult to define in which particular sector Bharat Dynamics excel. Bharat Dynamics should now focus on excelling in one sector to generate more revenue streams and create an identity that shows the USP of Solar.

Opportunities for Bharat Dynamics 

Opportunities refer to the chances of the progress of the company in future. Let’s have a look at the opportunities for Bharat Dynamics:

• Accelerated Technological Innovations & Advances: Rapid technical advancements are increasing industry productivity, allowing suppliers to provide a wider range of products and services. This may enable Bharat Dynamics to expand its product portfolio dramatically.
• Government Contracts: Bharat Dynamics should try seeking more government contracts as they deal in products and services that are mostly demanded by the government for the defence sector and industrial development. Hiring contracts will open new revenue streams for Bharat Dynamics.
• Strategic Partnerships: Bharat Dynamics should pave the way to enter into strategic partnerships with foreign original equipment manufacturers, this will lead to opportunities for both to meet the Government of India’s defence requirements, and for the Government in achieving its aspiration of autonomy in defence supply through the development of a home market defence industry.

Threats to Bharat Dynamics

These are the factors that have the potential to harm an organisation. Threats are uncontrollable external factors that might overcome or damage the strength and opportunities.

• Security, Health & Safety: Bharat Dynamics deals with major security threats to its workers and employees as the industry deals in the manufacturing of risky items i.e. defence missiles and underwater weapons. The industry has significant pressure from unions for the safety of its employees.
• Government & Environmental Regulations: The government has slightly different and introduced more strict laws for defence industries to maintain their control over the consumption of natural resources. While on the other hand organisations concerned about the environment also have their eyes on defence industries due to their threat to natural resources and the environment i.e. explosion tests on earth.
• Shortage of Trained Human Resources: Due to significant staff turnover and a growing reliance on new solutions, the firm name may encounter skilled human resource issues in the future.
• Changes in the Prices of Raw Materials & End Products: The products in which Bharat Dynamics deal necessitates the use of fuel, oxidizer nitroglycerin and black powder. All of these resources are limited, and obtaining them is tough. Because it is often difficult to mine in particular places, the prices of raw resources continue to rise, and even the prices of final products fluctuate; this is a threat to Bharat Dynamics.

This ends our comprehensive SWOT analysis of Bharat Dynamics. Let us conclude our learning below.