Astra Microwave bags Rs57-crore order from Israeli defence firm under new offset clause
01 Dec 2008
Astra Microwave on Monday said it has bagged Rs 57 crore worth order from Israel's Elta systems for the supply of microwave wireless sub-systems for India's defence radar programme. After the news broke, its stock zoomed up by 8 per cent to Rs 44.15 on the Bombay Stock Exchange.
This order is to be executed over 18 months time and would be Astra's first contract under the offset obligation clause of India's defence procurement policy, the Hyderabad-based company said in a statement here. According to this policy, 30 per cent of all defence contracts worth Rs 300 crore and above will be invested in Indian defence industry by way of sourcing components, sharing technology, setting up training facilities or using IT services.
The Elta contract showcases Astra Microwave's global technological capabilities and scale of operations to meet the demand from obligations mandated by the Defence Procurement Policy, said B Malla Reddy, managing director, Astra Microwave.
"Offset obligations are a significant opportunity for manufacturers and technology providers in the Indian defense space. Our proven technological expertise, infrastructure, and processes are a strong positive differentiator with global defense suppliers. Going forward, we are confident of forging many such relationships," Reddy said.
Headquartered in Hyderabad, Astra Microwave Products Ltd designs, develops, and manufactures components and sub-systems for microwave wireless communications systems used in defense, space, and civilian applications. Prominent customers include, among others, the Defence Research Development Organization, Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics, Electronics Corporation of India, the Indian Space Research Organization, Reliance Communications, Ericsson, and Tata Teleservices.
Elta systems is a group subsidiary of Israel Aerospace Industries, ELTA, a world leader in electromagnetic sensors based advanced defence systems for radar, electronic warfare and communications.
