Defence electronics major Bharat Electronics Ltd (BEL) is setting up a joint venture with Astra Microwave Products Ltd for the design, development of prototype, manufacture, and marketing of RF and microwave products for use in defence, space, and telecommunications.
Astra Microwave, a provider of cutting-edge RF and microwave components and sub-systems for critical defence and civilian applications, will hold a majority stake in the joint venture.
The MoU was signed in Bangalore today by IV Sarma, Director (R&D), Bharat Electronics, and B Malla Reddy, Managing Director, Astra Microwave.
According to the terms of the MoU, Astra Microwave will own a majority 51 per cent equity in the joint venture while Bharat Electronics will own the remaining 49 per cent.
The JV is proposed to be the platform for the design, development, and manufacture of BEL's microwave intensive products.
''The partnership with BEL will significantly enhance Astra's delivery capabilities and market reach,'' said B Malla Reddy, managing director of Astra Microwave.
"BEL's record of excellence in advanced electronics systems goes back several decades, while Astra Microwave has firmly established itself as India's top provider of world-class RF and microwave technologies for defense, space, and telecom," said Reddy. "We are honored that BEL has chosen Astra Microwave as its partner; the joint venture is uniquely positioned in scale and capability to meet the requirements of the niche, but potentially large, global market, for microwave intensive products," he said.
Based in Hyderabad, Astra Microwave Products designs, develops, manufactures and supplies components and sub-systems for RF and microwave communications systems used in defense, space, and telecom applications.
The company's major customers include, among others, Antrix Corporation, Defense Research Development Organisation, Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics, Electronics Corporation of India, Indian Meteorological Department, Indian Space Research Organisation, Reliance Communications, Ericsson, Tata Teleservices among others.
Astra Microwave reported gross revenue of Rs127 crore on an equity capital of Rs10 crore in fiscal 2007-08.