Email
Print
ShareBangalore: Telecom and defence manufacturer Kavveri Telecom Products on Thursday announced its acquisition of Canada's Trackcom Systems International (TSI), a design and development company.
It did not disclose the size of the deal which involves picking up 67% stake in the Montreal-based R&D company. It will acquire the remaining 33% over the next 4-5 years.
Shivakumar Reddy, managing director of Kavveri Telecom, said the new buyout, which has the R&D capability for radio frequency (RF) products up to 40 gigahertz (Ghz), would help his company transfer technology to its manufacturing units in India and North America.
"Currently, our R&D capability is up to 10-18Ghz. Now, with 40 Ghz capability, we will be able to expand our product portfolio in the defence and aerospace segment," he said.
Reddy said huge opportunities were unfolding in the defence sector in the domestic market with an allocation of Rs 1.42 lakh crore in the Interim Budget. Of the total defence budget, 20% or close to Rs 28,340 crore would be spent on electronic warfare products -- an area in which Kavveri is keen to tap opportunities with the Trackcom acquisition.
"With mounting concerns over homeland and border security and rapid advances in the field of electronic warfare, there is a growing trend toward the adoption of wireless technologies in various applications of the defence sector," he said.
Today, the company's revenues from defence and space is just 3%; Reddy said the acquisition will push it up to 15% by 2011-12.
Kavveri produces base station antennas and accessories used by GSM and CDMA operators.
The takeover will add 20 researchers based in Montreal to Kavveri's 70 researchers in India & North America.
