homebusiness Newscompanies NewsParas Defence shares surge after signing MoU with Israel’s CONTROP to produce electro optic systems
Paras Defence shares surge after signing MoU with Israel’s CONTROP to produce electro-optic systems
CONTROP, an Israel-based private company, specialises in the development and production of electro-optical and precision motion control systems.
Shares of Paras Defence and Space Technologies Ltd. surged nearly 4 percent on Wednesday after the company announced that it has signed a memorandum of understanding (MoU) with Israel-based Precision Technologies Ltd. (CONTROP).
The MoU has been signed with an aim to expand both the companies in the defence sector in India and overseas markets, Paras Defence said in a filing to the stock exchanges.
As part of the MoU, the companies will be setting up a joint venture (JV) in India for manufacturing electro-optic systems for various applications, all in accordance with the Make in India initiative by the government.
Speaking to CNBC-TV18, Amit Mahajan, Director-Business Development, Paras Defence said, “This is, a very remarkable event in our companies business. We are partnering with one of the world's best and producing some things which are not being produced in the country, which are electro optics complete payloads. This not only opens up opportunities for the domestic market, but also opens up great opportunities for global markets.”
Electro-optical sensors are electronic detectors that can convert light electronic signals. These sensors have the ability to detect electromagnetic radiation from the infrared right up to the ultraviolet wavelengths. These sensors are used for military or law enforcement applications.
CONTROP, an Israel-based private company, specialises in the development and production of electro-optical and precision motion control systems for surveillance, defence and homeland security applications. Under the joint venture in India the company will be engaged in manufacturing electro-optic systems for various applications.
Paras Defence and Space Technologies offers high precision products and turnkey solutions to the defence and space sector.
On February 16, Paras Defence had signed an MoU with Yantra India under the Ministry of Defence for during Aero India 2023 at Bangalore to jointly address the requirements of Indian Defence Forces and Export Markets.
For the December quarter, Paras Defence reported revenue growth of nearly 40 percent compared to the same period last year, while net profit grew 28 percent.
Mahajan mentioned that the current order book is in excess of Rs 550 crore and is increasing every week. The company is set to cross Rs 100 crore in the drone segment, a significant milestone for the company.
When asked about the company's export exposure, Mahajan explained that it is currently low but will increase over time. The collaboration with CONTROP Precision Technologies is expected to boost the company's global presence, leading to an increase in exports.
Shares of Paras Defence are trading 3.6 percent higher at Rs 497.50.
(Edited by : Rukmani Krishna)
First Published: Mar 15, 2023 12:10 PM IST
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