September 28, 2009 at 7:31 pm
Source: http://www.defpro.com/daily/details/411/
06:51 GMT, September 28, 2009 defpro.com | Samtel Display Systems (SDS) is a success story in the private sector’s entry in to Indian defence manufacturing. What has worked in its favour is their products are also sold in the civil sector both in India and overseas. This gives it a strong, steady cash flow on the basis of which it can pursue defence contracts. Pure play defence companies in India fail because defence sales are often staggered, disrupting a smooth order flow required to sustain a private sector company. SDS is also supported by partnerships with HAL, DRDO and overseas companies like Thales and Honeywell. Samtel will be a prime beneficiary of the government’s offset policies as its products are already sold globally and there are few restrictions on exports.
In this light, Manu Sood, Editor of the India-based online news service 8ak (http://www.8ak.in), a media partner of defpro.com, interviewed SDS Executive Director Puneet Kaura about the company, its products, and its future.
8ak: Can you please outline the main field of activities and products of SDS?
Puneet Kaura: SDS produces colour avionic tubes, Multi Function Displays (MFDs), Helmet Mounted Displays (HUDs), Automated Test Equipments and IADs, as well as control displays for armoured military vehicles. It is part of the Samtel Group, India’s largest integrated manufacturer of a wide range of displays for television, avionics, industrial, medical and professional applications, TV glass components for displays, machinery and engineering services.
8ak: Could you give us an overview of the projects which SDS is currently working on?
Kaura: Our joint venture with Hindustan Aeronautics Limited (HAL) was intended to leverage the joint strengths of the two companies in indigenisation of avionic products and systems. Through this joint venture, Samtel and HAL are targeting to replace all the imported cockpit displays (MFDs, HUDs, HMDs & ISIS) across all platforms of HAL with Samtel-HAL JV’s products.
Also, we have a Memorandum of understanding (MoU) with the Defence Research and Development Organisation (DRDO) under which we intend to indigenise cockpit displays. In fact, a live 5”x5” MFD which has been developed by Samtel in collaboration with DRDO, and has been fully cleared for flight worthiness, has been further developed by Samtel HAL Display Systems, and is flying on Sukhoi Su-30MKI aircraft. Samtel Display Systems has signed a MoU with Defence Avionics Research Establishment to indigenise cockpit displays under the aegis of DRDO Lab’s DARE programme.
Speaking of our international partners, we recently unveiled a full colour display that we have co-developed with Thales for the Airbus family. Another one of our partnerships had been with Honeywell and we have developed the EFIS40 with them.
With regard to the indigenous light combat aircraft, Tejas, it has a scope to deploy all Samtel displays. Under the joint-venture with HAL, SDS is aiming to develop avionics for the aircraft and also for the Intermediate Jet Trainer.
8ak: There was an announcement at the Paris Air Show for 20,000 displays for Airbus. Is that a confirmed or potential sale?
Puneet: The announcements made at Paris Air Show are confirmed orders. We took our association with Thales one step forward when we unveiled the Airbus 320/340 Full Colour Display at the Paris Air Show 2009 for the first time. This was followed by the more recent contract with Honeywell for EFIS 40 Display [N.B.: Currently, Sony has a monopoly in EFIS] for General Aviation aircraft. The development project for both the products was on for some time, and now we are getting into production of the same.
8ak: What are your expansion plans? Are you going to restrict yourself to displays or enter other related or unrelated areas?
Puneet: We’ve already moved beyond displays. ATEs or Automated Test Equipment are already a part of our portfolio. Also, the Helmet Mounted Sight Display (HMSD), for the development of which, we have set up the joint venture with Thales, is not just a product but a whole system. Going forward, we plan to expand our scope to include integration, testing and support of radars, mission computers, electronic warfare suites and obsolescence management of cards.
8ak: What stage of development and production is your HMSD at? How long will it take to be ready to market the product?
Puneet: Samtel and Thales signed a joint venture (JV) in 2008 to work towards the local development, production, sale and maintenance of Helmets Mounted Sight Displays and other Avionics Systems destined for the Indian market. The HMSD – named TopSight-I – is based on Thales’s advanced and proven technologies and is suited for all Indian fighter aircraft. The JV has received FIPB approval and the company is in the process of setting up the production facilities in the National Capital Region of Delhi.
8ak: How different is it from Thales’ top of the line product – Top Owl?
Puneet: Both TopSight-I and Top Owl are a part of the same brand and are based on same technologies but are for different platforms. While TopSight-I is for fixed-wing aircraft, Top Owl is for Rotary Wing aircraft. Thus, the specifications are also slightly different, as the requirements are different for both platforms. Both TopSight-I and Top Owl will be marketed in India.
8ak: Is SDS the only partner for Thales in HMSD or are there others? What markets will these be sold in? I assume Thales will not want to cannibalise its sales in its other markets.
Puneet: In India and across the world, Samtel is the only partner for Thales for the manufacture of HMSD. The HMSD will be marketed worldwide.
8ak: What makes Samtel stand out from international competition?
Puneet: Every country has its competitive advantages. For example, China, being a labour-intensive economy, uses it to derive cost advantage while Japan uses its technological advantage. At SDS our constant endeavour is to arrive at a combination of several factors. While we are continually investing in R&D to arrive at high-end technology, our attempt is also to minimise costs in order to become the ideal offset partners for foreign players as well as to support the growth of the indigenous industry through our partnerships with the likes of HAL and DRDO.
In terms of products and services, SDS straddles the entire value chain from design, development, manufacture, testing, qualification, repair & maintenance and obsolescence management of avionics products and equipment for military as well as commercial aircraft.
8ak: Are you planning to hire additional personnel in the near future? Do you have many ex-military personnel?
Puneet: SDS provides exciting career opportunities for professionals in technical as well as management streams. As the defence and avionics market grows, business opportunities for SDS will also grow. To meet the demands of this growth, we would need skilled manpower. We do have ex-military personnel on our panel and are always on the lookout for promising talent to add to our workforce.