Centum Electronics Ltd has secured a major defence contract from Hindustan Aeronautics Ltd for the design and development of Active Electronically Scanned Array radar systems for the Utility Helicopter Maritime platform, according to an exchange filing.
The order marks a significant milestone for the defence electronics manufacturer and reinforces its growing role in indigenous aerospace and defence system development.
Phase 1 Order Valued at ₹66 Crore
Under Phase 1, Centum Electronics will undertake the design and development of AESA radar systems for the UH M platform over the next two financial years.The Phase 1 purchase order carries a base value of ₹66 crore, with a gross value of ₹78 crore inclusive of GST.
The radar system is designed to detect, classify, and track multiple maritime targets. It is expected to enhance the helicopter’s surveillance and operational capabilities in maritime environments.
The contract has been awarded by a domestic entity and covers design and development in Phase 1, followed by serial production in Phase 2, subject to contractual terms and program requirements.
Phase 2 Serial Production Estimated at ₹500 Crore
Upon successful execution of Phase 1, the program is expected to transition into Phase 2. This phase will involve serial production and supply of AESA radar systems over a five year period.Phase 2 is estimated to have a base value of around ₹500 crore, with a gross value of approximately ₹590 crore inclusive of GST.
This transition will be subject to the fulfillment of program milestones and contractual conditions outlined in the filing.
Strengthening Indigenous Defence Capabilities
The AESA radar program provides Centum Electronics an opportunity to demonstrate its system level design, development, and manufacturing capabilities in advanced radar and mission critical defence electronics.The company stated in its filing that the order further strengthens its long standing relationship with Hindustan Aeronautics Ltd and highlights its expanding footprint in advanced indigenous aerospace and defence systems.
Stock Market Reaction
Shares of Centum Electronics Ltd ended higher on Tuesday, February 24, rising 5.12 percent to close at ₹2,810.00 on the NSE.In contrast, shares of Hindustan Aeronautics Ltd closed 1.80 percent lower at ₹3,953.00 on the NSE.
The development positions Centum Electronics at the forefront of advanced radar system development for maritime aviation platforms, as it moves ahead with the execution of the Phase 1 order over the next two financial years.
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