For developing, manufacturing avionics display systems
New Delhi, July 10
Electronics display systems manufacturer Samtel on Monday entered into a joint venture agreement with aviation major Hindustan Aeronautics Ltd for developing and manufacturing avionics display systems.
Samtel would be the majority shareholder in the joint venture, Samtel-HAL Display Systems, with 60 per cent stake and the balance will be held by HAL.
Commenting on the joint venture, the Samtel Chairman and Managing Director, Mr Satish Kaura, said the company would make investments in the joint venture in two phases and the avionics products would be marketed initially for domestic requirements and then later in the global markets.
"There will be two levels of investments, with a minimal initial investment on infrastructure and bigger investments on research and development for developing the products," Mr Kaura said.
The company, however, is expected to invest about Rs 5-6 crore initially on the manufacture of the avionics display system at its Ghaziabad facility and is targeting to garner revenues of about Rs 300 crore in the next five years.
It will manufacture Multi-Functional Displays and Head-Up Displays required for HAL's star programmes like intermediate jet trainers (IJT), light combat aircraft (LCA) and SU-30 MKI.
The HAL Chairman, Mr Ashok K. Baweja, said the joint venture would synergise the capabilities of the two companies to become a globally competitive business entity, adding that the joint venture was a significant step towards developing indigenous next-generation MFDs, HUDs and Helmet-Mounted Targeting Systems (HMTS).
This is the first public-private partnership in the area of Defence Avionics.