Active Stocks
Thu Apr 18 2024 13:55:29
  1. Tata Steel share price
  2. 162.05 1.25%
  1. Power Grid Corporation Of India share price
  2. 279.80 1.99%
  1. Infosys share price
  2. 1,427.10 0.87%
  1. NTPC share price
  2. 355.45 -1.06%
  1. Wipro share price
  2. 446.90 -0.38%
Business News/ Industry / Manufacturing/  Astra Microwave expects its JVs to take off next year

Astra Microwave expects its JVs to take off next year

The company has projected sales of `450 crore this fiscal year

In FY16, Astra Microwave’s revenue was `420 crore.Premium
In FY16, Astra Microwave’s revenue was `420 crore.

Hyderabad: Astra Microwave Products Ltd, a maker of subsystems used in the defence and telecommunication sectors, is expecting a pair of joint ventures to take off in the next financial year, which will help it earn an additional 1,800 crore in revenue over five years.

One of the ventures is with Israel’s Rafael Advanced Defense Systems Ltd for joint production and supply of tactical radio communication, electronic warfare and signal intelligence systems. This venture is awaiting clearance by the ministry of defence.

The second is with Canada’s Unique Broadband Systems Ltd for ultra high frequency broadcasting, satellite uplinking and medical imaging products.

“The Canadian JV business will start from FY18 onwards and we expect to have at least 300 crore of turnover from this JV in the next five years. Similarly, Rafael JV revenues will start from next fiscal year, if we complete all the formalities this year. So in the next five years, we have the prospects for about 1,500 crore," M.V. Reddy, director of operations & business development, Astra Microwave, said in a conference call on 30 April.

The company has projected sales of 450 crore this year (FY17) against 500 crore it had earlier hoped to achieve on the back of export targets.

Almost 80% of the company’s orders come from the defence sector. The Indian government’s Make in India programme is meant to encourage manufacturing in the sector, but building capacities and completing projects remains time-consuming.

“So we had planned some sales in this year but because of the delay in the order of the business we had expected, we will be shifting to the next year. So this year we will have only 450 crore in sales," said B. Malla Reddy, managing director, Astra Microwave, in a 30 April conference call.

The FY18 sales could then be 550 crore. In FY16, the company’s revenue was 420 crore.

The company, along with Bharat Electronics Ltd, is also finalizing the terms of the light combat aircraft project for the Defence Research Development Organisation (DRDO). This involves making AESA (Active Electronically Scanned Array) radars.

“In the first phase probably they (DRDO) are planning around close to 100 numbers, so initially we will be doing some 2-2 numbers (half) each; BEL and Astra. This is something which is in the discussion stage, it is not finalized yet," Malla Reddy said.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 04 May 2016, 09:50 PM IST
Next Story footLogo
Recommended For You
Manufacturing Stocks
Switch to the Mint app for fast and personalized news - Get App