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Apollo Micro Systems Cashes on ESDM Industry boom

Published in Corporate Tuesday, 23 October 2018 13:28



      ESDM Industry expected to grow to US$ 400 Bn by 2022

Apollo Micro Systems Ltd is cashing in on the Electronic System Design and Manufacturing (ESDM) industry boom. "The total global ESDM industry is pegged at US $ 2 Trillion, out of which, India’s Production was about US$ 47 billion during the year 2016-17. The domestic consumption in India was about $ 86.4 billion during the year 2016-17. But India's  ESDM Industry is expected to grow to US$ $400 billion by 2022," according to Mr Baddam Karunakar Reddy, Managing Director, Apollo Micro Systems Ltd.

 The ESDM segment's growth is in turn dependent on two factors: Defence Budget increase; and Government's effort to increase Indigenisation. 

The Indian Government's Defence India’s defence budget for the current  financial year 2018-19 has been increased by 7.81 per cent to Rs 2.95 lakh crore over last year’s Rs 2.74 lakh crore allocation. The defence spent has gone up by 54% over the last 10 years. 

Besides the growth in Defence budget and spent, India still imports over 60% of its Defence equipments. This is where Government's new Defence Procurement Procedure under the "Make in India" policy comes into picture. The growth in Defence spent and Indigenisation is expected to have a spill over effect on ESDM segment. 

This creates a unique opportunity for companies like Apollo Micro Systems Ltd.  Apollo Micro System's revenues are growing at a Compounded Annual Growth (CAGR) of 25% over the last 5 years. It cater to Defence Labs and Defence related PSUs.

Apollo Micro Systems, for instance, has categorised its defence systems supplies into On-Board Systems and Ground support equipment. 

On-Board systems are electronic systems which are integrated On-Board a Weapon (which could a Missile, Aircraft, Ship, Submarine or Battle Tank) used for navigational requirements, on-board computation, instrumentation & control, telemetry, Payload acquisition and encoding, command & Guidance, Signal Processing, Seeker data processing, Height Analyzers requirement (Altimeter), Power Electronics and to power the On-Board Electronics. 

The Ground Support Equipment means any other electronics which are associated and communicate with On-Board equipment or other support equipment which are required for command control communication, Ground Checkout, Launch of Vehicles and other associated systems. 









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Business Digest August September 2018

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