Mechvac Group Announces a Tie up/Acquisition With Prismatec, Israel

MUMBAI, January 24, 2014 /PRNewswire/ --

The Buy Will Help Fast Track Growth and Cater to the Growing Equipment Needs of Weapon Sights for the Indian Army

Mechvac Fabricators (I) Pvt. Ltd. (MFIPL), engaged in the manufacturing of ultra high precision engineering parts, assemblies and with an established facility for manufacturing high end optics has announced their tie up/acquisition with the Israeli-based Prismatec (NNL).

Mechvac and the Israeli company SDS (Star Defence Systems) Ltd. have concluded a Letter of Intent, to pursue an agreement between the Parties with respect to SDS's subsidiary, New Noga Light (2000) Ltd. which refers to the purchase of New Noga Light shares from SDS by Mechvac, or at the very least, the transfer of technology of, among others, night vision devices to Mechvac which meets the 'Buy Indian' terminology.

The one of its kind acquisition has been done with a view to expand and access the exclusive technologies owned by Prismatec and enable manufacture of products like monocular sights, binocular night vision sights, thermal sights and test equipments. The sequence of events will commence with the transfer of technology and to offer the products in Indian rupees, meeting the 'Buy Indian' guidelines, followed by the acquisition.

On the occasion, Mr. Raj Chodankar, Chairman and Managing Director, Mechvac Fabricators (I) Pvt. Ltd. said, "The acquisition of Prismatec marks a new chapter in our existence and a way forward. It will give Mechvac an upward momentum as all the components required to be integrated in the manufacture of night vision equipments can now be produced and manufactured in-house. The combined entity will have several synergies and makes strategic sense."

Said Mr. Solomon, Prismatec, "We have a long association with Mechvac, having collaborated in the manufacture of several equipments in the past. Now with the eventual merger of Prismatec with MFIPL, better exploitation of available opportunities in India and abroad will be possible."

The company's products are consumed by the Indian Army; they are approved by the Ministry of Defense (MoD) as also the Ministry of Home Affairs (MHA). Till date Prismatec has supplied over 10,000 weapon sights to these consuming entities valued at over $100 million. The products include thermal imaging weapon sights, day vision and night vision sights, thermal imaging goggles, night vision goggles and test equipments.

Adds Chodankar, "The technologies involved are unique in nature and if given an opportunity to establish these technologies on a fresh note, will mean that it would take a minimum of two years to develop such technologies and another 2 years to get the approvals from the MoD, due to stringent field trials as there are no compromises on quality, accuracy, precision and other parameters. Also we have received requests from related industries to offer their tie up with equity participation due to the huge market demands for the next decade and we are also looking closely at this too. By acquiring Prismatec, we will be able to fast track the readily available technologies and grow faster. The MoD has recently laid focus on 'Buy Indian' concept which will help companies like Mechvac. The need and demands for the Indian Army and the MHA put together is huge, over 1.50 lakhs weapon sights, valued at Rs. 3,800 crores over the next few years and hence this tie-up assumes great significance in the Indian market. Mechvac already possesses facilities at Navi Mumbai to produce all the mechanical and optics parts and also assemble the same in house."

About Mechvac Fabricatiors India Pvt. Ltd.

Mechvac Fabricators India Pvt. Ltd. is in the manufacturing of Ultra High Precision Engineering equipments with specialization in Nano-machining and IR Optics manufacturing facilities. Key amongst its product portfolio are Thermal imaging components that cater the needs of Defense, Aviation, High end Automobile Industry, Maritime, Commercial Security, Border Surveillance. The company also offers complete ultra precision machining and Nano machining services for projects that requires the greatest degree of accuracy. It is the first unit in India in the private sector to be equipped with one of the best Nano machining centre and the world's best Metrology system. The facility has been set up in a Class 10000 clean room facility meeting international standards and this established technology has now opened a huge platform globally.

MFIPL is an approved vendor in India by Armament Research and Development Establishment, Pune, Indian Ordnance factories, Terminal Ballistic Research Laboratory, Space Applications laboratories and other relevant bodies too.

For more information visit www.mechvac.org

Primary Media Contact: Eddna Samuel, [email protected], 91-9892452424, 91-9322952424