Sergey T. Khvoshch, Elcus - ЗАО "Электронная компания ЭЛКУС"
Release Date: 2008-11-10
Mr. Khvoshch has been visiting AirShow China, in Zhuhai, for the last 4 years. This year, his prime concern was about the impact of the current financial crisis on the size of the participation of many foreign players in the event. However, he thinks Russian companies have come in force to AirShow China because the credit-crunch-driven financial crisis has not affected them as much, and also commercial relations with Chinese partners are flowing positively.Although ELCUS Company is currently part of the Concern AVIONICA Holding, the biggest private holding in the sphere of avionics for aircraft and space products, Mr. Khvoshch is proud to voice the financial independence of the company, and stated that he, as a shareholder of ELCUS, decided to join forces with Concern AVIONICA in order to stimulate synergies and enlarge the portfolio of business contacts for all members of the holding.
What has ELCUS brought to the Zhuhai AirShow this time?
We have always participated in most of the air shows around the world and we look at Zhuhai with big interest because for ELCUS China is a fantastic market with lots of future potential.
During the current year we have sold to our Chinese clients more than 400 cards and we are very satisfied with our commercial relations in the People’s Republic of China.
It seems that for many Russian companies, the possibilities to set up joint ventures with Chinese companies could lead to a large market presence in China and more sales. What is ELCUS’s strategy in this regard?
Since our products contain a highly technological component, where lots of R&D is necessary, we believe that in order to keep our innovative level, and avoid counterfeit of our products, the most suitable situation is to keep only a commercial relation with the Chinese market. To give you an example; almost 20 years of research went into our MIL-STD-1553B product. So, under such conditions and due to the extensive work of our engineers in St Petersburg, we feel we should have control over our products and license. Thus, a joint venture with a Chinese company would not be suitable in our strategy.
How large were the company’s total sales during 2008, and where were your Data Bus products installed?
Our sales volume for 2008 is estimated at around 10,000 units. And the reliability and high security of our products, meaning that data cannot be tracked down or removed, has made ELCUS’s products the preferred ones for Sukhoi Jet fighters such as Su-34 and the upcoming Su-35. Also, our products participate actively in Russian rocket and space programs and we have even worked in cooperation with the European Space Agency. My personal view is that many of the space programs around the world were possible because of the Russian know-how and our experience during Soviet times in reaching the outer-space.
Something important to highlight is that even though ELCUS’s products research and design is Russian, we use the best components from around the world in order to build our electronic products.
How do you see the future of ELCUS’s evolving in terms of markets and products?
We are currently working to enter the 3D technologies niche. For this purpose, we have started a partnership with a French company “3D-plus” which is similar in size and management to ELCUS, and we hope this will open a new business area for growth.
I also believe that the next year the Russian market will remain stable or slightly sink, and this is why we will concentrate our efforts in the Chinese, Indian and Latin American markets, specially Venezuela, where our products are very suitable, and we can work within our networks, as Russian government and companies are very active in these countries.
| Company: | Elcus - ЗАО "Электронная компания ЭЛКУС" |
| Position: | General Director, Doctor of Science |
| Country: | Russian Federation |