FIPB approves Telephonics JV with Mahindra

SP’s ShowNews (SP’s): Could you briefly tell us about Telephonics' range of products, technological advantages, global presence and presence in India?

Joseph Battaglia (Battaglia): Telephonics produces a wide array of radar, IFF, intercommunication, border surveillance and air traffic management solutions for military and commercial applications worldwide.

We command a significant market leadership position in the airborne maritime surveillance space, including the largest unit-production multi-mode radar- IFF programme - the AN/APS-153(V) - for the MH-60R maritime strike helicopter. Lighter weight versions of multi-mode radar include our APS-143C(V)3 system that is on the P-8i and the AN/ZPY-4(V)1 that has been selected for the Fire Scout programme for the US Navy. These are truly exceptional capabilities, unmatched in the market. The APS-143C(V)3 product line, for example, booked over 40 systems in the last fiscal year alone - that is exceptional for products in this class of sensor.

Our IFF product line includes the only fully US DoD AIMS certified all-mode IFF interrogator - these are high performance surveillance interrogators that enable missions on the world's AWACS fleet, and have also been successful in ground-based applications like the USMC G/ATOR programme and several shipbased applications. In addition to high performance, I believe we have the most flexible interfaces so integration with the primary radar and the weapons system is much lower cost and much lower risk than with competing systems. Beyond that, the advanced monopulse processing techniques employed in these systems lend themselves to much greater probability of detection, track accuracy and interrogation management. We have recently added the ability to receive ADS-B in these systems as well. The intercommunication capabilities we deliver are just as exceptional - Secure Digital Wired and Wireless solutions to meet the needs of any platform in any environment. We have a flexible and tailor-able solution set that we really have no equal in this space - our systems enable complete communication management in every branch of the US military and several international fleets - here is a great example: we provide the communications management system for the Boeing C-17 and have fully certified wired and wireless solutions for that aircraft and the Lockheed Martin C-130J. Our wireless TruLink product line is on demonstration at Aero India - the fully secure "NAS Type 1" encrypted model was recently approved for full-rate production in the US Army and is just one example of the encryption capabilities we can deliver our customers in the wireless environment. We think there is huge potential for these systems in India.

Another huge potential for us in India is border security solutions. Recently the Ministry of Home Affairs released a request for expression of interest (EoI) that covered a wide array of border operating environments in India. I think our mobile surveillance capability (MSC), a system just now completing final acceptance for the US Customs and Boarder Protection Service, is ideal for these widely varying operating environments and we plan to bring a system to India for trials and adaptation to the Indian operating environment. This is a very exciting opportunity for us. We have the right solution for these challenging environments ready today. So our product line is really an excellent match with our understanding of the current and near future needs of the Government of India and we are very pleased to be here with our partner Mahindra Defence Systems.

SP’s: Could you give an update on the joint venture with Mahindra & Mahindra (M&M)? Will it be used only for the Indian market or for export purposes as well?

Battaglia: I am happy to say that we have just received FIPB (foreign investment promotion board) approval for our joint venture with Mahindra Defence Systems (a wholly-owned subsidiary of Mahindra & Mahindra). While our initial focus is certainly to promote, manufacture, support and adapt Telephonics proprietary products for the Indian market, we have structured our business to be flexible enough to address regional markets in the future. There are several avenues to success for this venture - it will be the first to provide the wide array of products in the aerospace and defence electronics market using US technologies in a non-government aligned company. Of course, there is probably not a defence company in India that is not looking at the large offset obligations building up from Indian defence procurement and planning a way to make satisfying those offsets a core component of their business plan. The difference with us is that we already have decades-long, highly successful relationships with companies like Lockheed Martin, Boeing Corporation, Northrop Grumman, Sikorsky Aircraft, AgustaWestland, Airbus Military, Textron and many others.

SP’s: Does India have the necessary eco-systems for setting up high technology applications manufacture? Will it involve huge investments?

Battaglia: We will indeed be supporting a robust supply-chain development effort here in coming months. This is probably one of the top two or three essential elements of our execution plan - supply-chain development. And we are very focused on that. Our team is also very focused on the recruitment, retention and training of a world-class workforce and we strongly believe that is possible in Bengaluru with all of the high-tech and aerospace industry already operational here. It will take time. But India is a very important market for us and for the US. We will make it happen.

SP’s: What is the emerging dominating picture - whether it is civil or defence applications - for Telephonics in India?

Battaglia: Telephonics has traditionally been a defence company. And the planned modernisation of the Indian defence forces is certainly important for many international suppliers. We want to grow our air traffic management solutions in India as well, but the major thrust is defence and border security.

SP’s: What is unique about Telephonics family of Identification Friend or Foe (IFF) systems?

Battaglia: Outside of India, Telephonics has produced the first all-mode IFF interrogator system for use on fixed and moving platforms. It is fully US DoD AIMS certified for operation in modes 1,2,3,C,4,5 and civil mode S. As a matter of fact, our interrogators are aboard most of the world's AWACS fleet and in the US Navy version of the P-8 aircraft. We have proposed using this well proven solution as a primary interface to the P-8i mission system and await word on the way forward here as well.

SP’s: Could you give us an overview of the two other operating divisions - communication and integrated systems and Systems Engineering Group?

Battaglia: Well, as I mentioned before, the Communications and Integrated Systems division is an essential part of our India strategy and our joint venture here in India. The Systems Engineering Group is a division based in Columbia, Maryland, that supports the US Navy through various contracts as they develop missile defence capabilities - so we do not see a direct fit with India's requirements.

SP’s: Air traffic management is a growing area in India, could you tell us whether the JV will take care of that too, if not what are the plans?

Battaglia: Absolutely, this is a great capability that we have in our AeroTrac NextGen system and it has been gaining pace in recent months with integrated system wins in Korea and China. Telephonics offers high-performance, affordable secondary surveillance radar solutions on a stand-alone basis or as part of an integrated solution together with primary surveillance radar and automation. Whether customers consider our automation system for primary or backup, we have an excellent solution set. Our user interface has been adapted to replicate with extremely high fidelity, the user interface of other leading ATM providers - so we can seamlessly provide primary / backup capabilities in important air transportation networks. That is one reason I feel we have been so successful in the Pearl River Delta, and why I think we will be successful here in India with ATM solutions as well.