On commercial induction of a product, the technology gets transferred to a DPSU, which in turn places bulk orders on AMPL for the subsystem.

Under the segment of missile electronics, AMPL provides guidance subsystems for various missiles. The company is currently working on 5 missiles; Akash, Astra, Trishul, Brahmos and Pechora. Within radar applications, the company provides the Transmit/Receipt (T/R) module for several radars.

The Battle Field Surveillance Radar (BFSR) on which the company did R&D got inducted in 2004. Over FY05 and FY06, the company executed an order of Rs 750 million for 1,000 subsystems.

 In FY06, the L Band/S Band radar got inducted for which the company has been providing a subsystem. The company received an order of Rs 236.8 million from the Defence Research Laboratory in March 2007 for the supply of the subsystem. This order is likely to get executed by March 2008.

The company has been doing R&D work on several other radars likes the Rajendra radar and CAR1100 from which it receives steady R&D revenues. Induction of any of these radars would prove to be potential upsides for the company's business.

AMPL supplies a subsystem to BEL, Hyderabad which is undertaking the production of Electronic Warfare Applications. This EW application was developed by DRDL (Defence Research & Development Laboratory).and the technology was then transferred to BEL. This project steadily contributes close to Rs 50 million per annum to AMPL's revenues.

The company has also recently forayed into the avionics segment and has developed some amplifiers for Hindustan Aeronautics (HAL) In the defence segment, induction of any product which APML has been working on will prove to be a significant driver of revenues. On induction with the armed forces, the company normally receives bulk orders for the product.

Space

The space segment is expected to contribute significantly to AMPL's topline. The company has on its books an order of Rs 450 million for the supply of T/R modules for the Radar Imaging Satellite (RISAT) to be launched by the Indian Space Research Organisation (ISRO) in 2008.

The company executed an R&D order of Rs 100 million for the same in FY07. The Rs 450 million order is expected to be executed by FY08. Repeat launches of the RISAT as planned by the ISRO would result in potential business for AMPL.

AMPL has also signed an agreement with Antrix Corporation, the commercial arm of Department of Space for the production and supply of the Automatic Weather Station (AWS) to be deployed in various parts of the country. The AWS was developed by ISRO and AMPL was involved in this development. The AWS is a data collection platform used to continuously record weather data like temperature, humidity, wind speed etc from different locations including remote areas. This data collected can be relayed to ISRO's INSAT satellites. This product is also required by the meteorological department of India.

The potential of this product is up to Rs 200 million per year. The company plans to enter the area of payload fabrication and satellite integration for ISRO. This venture is likely to take two years to materialize. Successful entry into these segments will provide signification traction for AMPL's business.

Telecom

The company's telecom division steadily contributes close to 15% of revenues. It operates in the segments of cellular and fixed line telephony. The company provides equipment for telecom operators The Company has been focusing on introducing new products in this segment.

Beneficiary of the "Offset clause"

With the government introducing the offset policy, APML is likely to benefit. The company is talks with certain foreign suppliers to form partnerships in this regard. The company is likely to partner with ELTA, an Israeli defence company. ELTA is likely to receive an order from the Ministry of Defence for the supply of radars. APML is likely to supply certain subsystems to ELTA for this order to execute their offset