HBL Nife to diversify into rlys signalling, defence electronics

HBL Nife Power Systems Limited, the Hyderabad-based manufacturer of specialised batteries and electronics, is diversifying into the areas of railways signalling and defence electronics as part of its effort to expand its business.

"Our target is to cross the Rs 500-crore turnover in the current fiscal and make HBL a Rs 1,000-crore company by 2012," HBL's chairman and managing director A J Prasad told Business Standard. In 2005-06, HBL posted a turnover of Rs 365 crore.

The company is already working on the electronic signalling systems in the Indian Railways, and is close to commercialisation of 'Solid State Interlocking System' (SSIS) that helps in prevention of collision of trains apart from regulation of the normal movement of the locomotives.

On the other hand, the company has set up HBL Elta Avionics System Limited, a joint venture with Elta of Israel, for the manufacture of radar and electronic warfare systems for the defence sector. On its own, HBL would also be manufacturing electronic equipment like army radios, thermal images and night vision devices.

Prasad said that HBL would be investing Rs 60 crore in the next two years to set up four units at Tumkunta near Hyderabad, Gurgoan, Mumbai and Haridwar for the manufacture of defence electronics equipment. Incidentally, he said, Elta had done Rs 10,000 crore worth of business with the Indian defence sector in the past 10 years.

With regard to the electronic signalling system for the railways, he said that the SSIS was based on the Global Positioning System (GPS), which would be implemented on a pilot basis between Secunderabad and Kazipet. The estimated cost of the pilot project is Rs 30 crore.

"We are entering into the niche areas of railways and defence electronics as we do not want to be in a market which is crowded," Prasad said, adding that the objective of HBL was to emerge as a major exporter in the country.

In this context, he pointed out that HBL was already selling its civil aviation batteries and alkaline industrial batteries in the international markets.