Zen Technologies Ltd, the leading simulator manufacturers in India, announced their closing of the biggest ever contract in marketing simulators to the Indian Armed forces, today. They received the final nod from the Ministry of Defence to supply the largest ever consignment of simulators that Zen Technologies would be suppling to a single agency.
Zen’s order book, as of yesterday, was about Rs 133 crore. It comprised of Rs 68 crore for equipment and Rs 65 crore for Annual Maintenance Contracts (AMCs). The equipment order book of Rs 68 crore largely comprised of an export order that they had announced on 12 October 2017, of which Rs 64 crore was for virtual and live combat training systems. The AMC of Rs 65 crore on existing equipment covers the next four years.
Mr Kishore Dutt Atluri, President Zen Technologies stated that, “Today, the Company received its biggest ever order from the domestic market. It’s a landmark Rs 224 crore order from Government of India, split into Rs 156 crore for equipment (expected to be executed during the next financial year 2018-2019) and Rs 68 Crore of AMC which will accrue over the five years following the warranty period of two years.”
The Ministry of Defence, Government of India is reputed to be one of the toughest customers in the world. Zen Technologies garnering the order stands testimony to the fact that their products are world-class and fulfil a very real need. The simulators to be delivered by Zen Technologies are designed, developed and manufactured by Zen’s team. It’s an example of our Made in India endeavours.
In the words of Mr Ashok Atluri CMD, Zen Technologies, “We believe that this domestic order will provide the required impetus for further orders in the near future. Parallely, our focus on overseas markets are now bearing fruits. We have built a robust sales funnel for export market and are hopeful that they will start fructifying in the next few months.”
A very nominal percentage of training of the Indian Army is simulator based currently. Based on recommendations of various committees, measures have been initiated to equip the forces so as to provide a much higher percentage of training on simulators. In addition, IDDM is the most favoured category for acquisitions. Zen enjoys an advantage with its products being designed, developed and manufactured, in house.