Astra Microwave Products Ltd is investing Rs 25 crore to create new fabrication facilities near Hyderabad.

These include laser welding, automated soldering and latest electronics and so on. The company is a component and systems supplier to the defence and allied sectors.

The company is beefing up its facilities with an eye on defence offset contracts as well as several major programmes of the Space and Defence departments in which its expertise in radio frequency and microwave technology has immense scope.

The Hyderabad-based company, which crossed Rs 200 crore in turnover last fiscal, is raising funds through banks and internal accruals to invest in the facilities, said Mr B. Malla Reddy, Managing Director. It has an order book of Rs 732 crore.

In the next 4-5 years, the company is confident of growing at 50 per cent.

The defence offsets clause — which stipulates 30 per cent of any contract over Rs 300 crore to be sourced from within India — offers good opportunities for us, Mr Malla Reddy told Business Line .

Astra Microwave was one of the first private sector companies to bag an order under the offsets policy in 2008, when the Indian Government opened the doors.

To meet the expected delivery schedules and commitments, the company has redrawn its development and production plans creating different verticals.

The company achieved a profit of Rs 33.20 crore, a growth of 67 per cent over fiscal 2010-11 and has announced a dividend of 35 per cent.

A Rs 350-crore export order recently substantially boosted its order book position.

Astra Microwave provides components and systems support for radars, satellites and missiles through its expertise in RF and microwave technologies.

It has Rs 400 crore worth of export projects and over Rs 300 crore worth of orders from the strategic sector, Mr Malla Reddy said.

>soma@thehindu.co.in

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