Alpha Design bags Israel co order

Alpha Design Technologies, a Bengaluru-based defence electronics firm which on Thursday announced that it has recently won a multi-million-dollar deal to export 600 very high frequency (VHF) communication devices.

Addressing reporters, Alpha Chairman and Managing Director H S Shankar said that the deal is for supplying high-end VHF devices to Israeli firm Elbit. “We will provide the devices as per international specifications. A VHF device is used for long-range data communication for military operations, and two-way long mobile radio systems for emergency services, air traffic, and air navigation systems,” he said.

The Rs 401-crore privately-held company has also earned a Rs 536-crore export order from Elbit-Elop for shipping an unspecified number of thermal imager fire control systems, which are used for day and night automatic firing capabilities on static and moving enemy tanks and other objects.

Shankar said the company also plans to use the device for the critical communication needs of the Indian Army. “The VHF devices are very effective for all battle tanks, including T-90 and T-72. We have made the offer to the army to supply them for filling up the communication gaps,” he said.

He said the device’s evaluation is underway and the company expects to sell 500 to 5,000 devices in 18 months. “We expect the order from the army to be in the range between Rs 800 crore and Rs 1,000 crore,” he said.

When asked about the company’s investment plans, he said that Alpha Design Technologies plans to open two manufacturing facilities in Bengaluru — one at Whitefield and another at Devanahalli — on five acres of land each.

“We might require an investment of around Rs 500 crore for these facilities. We have both public banks and private funders ready to give money. We are also looking at IPO within a couple of years to raise further money,” he said.

The 13-year-old Alpha Design Technologies has a healthy order book of Rs 9,113 crore for supplying defence electronics equipment to the Indian armed forces, and overseas firms.