The assets incorporated by the Rostec State Corporation, established at the end of 2007, include multiple research centres from the radioelectronics engineering sector. The decision is made to bring them under a holding structure - the concern.
Radio-Electronic Technologies (KRET) is registered on February 19, 2009, which is recognised as the day of the company’s founding.
Forty-two enterprises, earlier incorporated into the Rostec State Corporation by the Russian Federation in accordance with the Russian presidential decree 1052, of July 10, 2008, are incorporated into KRET.
KRET functions as the managing organisation of these businesses. The latter are grouped in accordance with three areas of development and manufacture of electronics and communications systems, systems, and equipment, and also their components, namely:
- electronic warfare (EW);
- IFF code identification;
- connectors and cables.
The diverse enterprises which constituted KRET do not operate under a common long-term programme of forward-looking planning and development. Funding shortages and delays result in backlogs of orders, both domestic and foreign.
Initial goals are as follows:
- consolidation of the research and production potential in radioelectronics engineering, which was hitherto spread out over various enterprises
- narrowing of the technological gap, technical refitting, and modernisation of manufacturing facilities;
- development of the enterprises into more competitive and effective operations.
The KRET team succeeds in rapid and effective transformation of the enterprises through an integrated advanced management model which includes carrying out a comprehensive audit of all of its enterprises, fostering internal cooperation ties, mapping out a development strategy, and prioritising activities.
The drive to optimize production and establish cooperation ties helps significantly reduce losses and the number of enterprises operating at a loss in 2010, while raising the average monthly wage by 17%.
Automated management systems and flexible manufacturing and management processes are designated as key priorities of KRET development aimed at boosting efficiency of its operations.
The year 2011 sees KRET expand beyond its legacy activities (electronic warfare, IFF code identification, connectors and cables) to include competences in the field of measuring instrumentation in line with the Rostec memorandum “On Holding Companies in the Field of Electronic Warfare, IFF Code Identification and Measuring Instrumentation With Various Applications”. The number of enterprises which constitute KRET grows to 51.
In 2011, KRET establishes:
- Unified accounting centre (Treasury) (former Novikombank). This allows the firm to streamline the disbursement of financial resources and budget discipline within KRET, optimise third party relationship, and reduce interest payouts;
- Single trading and procurement platform, required to establish a single system of integrated deliveries of electronic components, foreign and Russian, resulting in reduced spending on purchased components and better logistics procedures;
- Concern Radio-Electronic Technologies development strategy approved by the Strategic Planning Committee of Rostec Supervisory Board on December 9, 2011. The development strategy maps out KRET’s key development priorities for the period ending in 2020, projects its development scenarios, charts a new organisational model, and defines phases and indicators of development strategy implementation.
In 2011, R&D into the prototype of the Khibiny advanced multifunctional EW system is completed, and a contract signed with the government for series production of the Khibiny.
In 2012, KRET incorporates enterprises of the defunct company Aviapriborostroyenie, further complementing and expanding its product range to include the development and production of airborne electronics and avionics with applications in military, transport and civil aviation.
In 2012, KRET effectively becomes the managing organisation of 71 enterprises, not counting their subsidiaries. It succeeds in consolidating the bulk of hitherto disparate instrument manufacturers in the Russian Federation.
2012 sees the successful completion of R&D into the prototype EW systems Krasukha and Moskva 1, the company entered into government contracts for deliveries of series production systems to commence in 2013 and 2014. In 2012, KRET commences expansion into new markets. Creating a “level” of customer-oriented integrated vendors who have integrated research and manufacturing capacities becomes the target business model.
To make sure the government defence order is implemented and the new “integrated vendor” business model is put in place, the company proceeds to buy into and increase shareholdings and majority stakes in the assets of KRET organisations. In 2012, the Company purchased shares in Stavropol’s Signal radio plant to bolster production capacity in order to cope with the EW defence order from the government and in Radiopribor to boost production capacity for IFF code identification systems at the Shimko Radioelektronika Research and Production Association.
KRET embarks on a programme to modernise production and introduce new technologies. 23 enterprises of KRET work on 41 investment projects under federal target programmes aiming to develop Russia’s military-industrial complex in 2011-2020 and electronic component base and radio-electronics in 2008-2015.
The MAKS 2013 Aviation and Space Salon proved to be a milestone event, enabling KRET to showcase the integrated vendor concept covering the full life cycle of military and civil equipment, both airborne and otherwise. KRET wins the MAKS 2013 Golden Wings competition in the MAKS 2013 Debut and Exposition nominations.
In 2013, development of the Parodist EW multifunction system prototype is completed (production Parodists are ready for delivery) along with R&D into a Rychag AV jammer helicopter prototype. A government contract to begin commercial deliveries in 2015 is signed.
KRET begins commercial deliveries of the Krasukha EW systems and is working to optimize the asset portfolio by divesting non-core assets from the standpoint of key businesses.
To add missing competencies required by KRET to become an integrated vendor, the company buys into UKBP, Tekhpribor, and Corporation ‘Fazotron NIIR’.
In 2013, KRET succeeds in achieving 100% fulfilment of the government defence order. Positive trends are observed in almost every key indicator across KRET.
To deliver business openness and transparency, KRET prepared reports according to IAS from 2012 to 2014, which are audited by Ernst and Young.
In 2014, development of a multi-functional EW shipborne system prototype, Charodeika, is successfully completed, and KRET begins commercial deliveries of the Moskva 1 EW system.
KRET ventures into the new field of development and production of cybersecurity, integrated security systems, and automated management systems for sensitive infrastructure.
Rostec State Corporation hands over to KRET the majority stake in KAO, which is licensed to trade in defence-related products on the foreign market, to enable supplies of KRET products to foreign customers.
KRET buys into UPZ, a leading manufacturer and maintainer of sophisticated gyroscopic instruments and aircraft equipment used in navigation and flying. Efforts continue to optimize the asset portfolio.
KRET receives a prize of the national Golden Idea 2014 awards, instituted by the Russian Federal Service for Military-Technical Cooperation, for promoting military-technical cooperation and providing informational support of military exports.
In 2014, KRET achieves 100% fulfilment of the government defence order for the second time and commits to continue to honour its obligations to the state.
Today, KRET is an umbrella for 92 business units, which develop and manufacture military and civilian radio and electronics products including avionics sets, electronic warfare and reconnaissance means, radars, IFF code identification systems, multiple measuring instruments, connectors, electric couplers, and cables.
KRET enterprises are located across Russia, from St. Petersburg to Vladivostok, employing 56,000 people.
KRET and Irkut Corporation sign a joint memorandum on utilizing integrated modular avionics (IMA) R&D results and transferring several prototypes to Irkut Corporation for adjustment, integration, tests, and certification (qualification) as part of prototype MS-21 test benches.
Participation in Exhibitions and Conferences:
- HeliRussia-2015 Exhibition. Showcases latest in Russian helicopter airborne equipment.
- Army-2015 International Military-Technical Forum. KRET is awarded honorary diploma of the Defence Ministry of the Russian Federation for electronic warfare systems and means of reconnaissance.
- XII International Aviation and Space Salon MAKS 2015. KRET becomes a double winner of the MAKS 2015 Golden Wings Competition in the “Exhibit Innovation and Cohesion” and “MAKS 2015 Debut Product” nominations with the Rychag AV EW helicopter system.
- The company organises the XIV industry scientific/engineering conference “Russian Radio-Electronics - New Challenges and Vistas” in Kazan.
Airborne equipment sets of the Ka-226T helicopter and the Mi-38 multi-purpose transport helicopter are certified.
Additional ground and flying certification tests of the Be-200ChS amphibian aircraft with the upgraded flight and navigation package are completed.
The Charodeika shipborne system, the Mi-8AMTSh-VA first “Arctic” helicopter, and the Porubshchik airborne EW system are successfully tested.
KRET enterprises are commended by deputy prime minister Dmitry Rogozin and aerospace force chief Viktor Bondarev for high-performance and reliable military hardware that has seen action in the Syrian Arab Republic in 2015, specifically aircraft equipped with KRET avionics.
Concern Radio-Eelectronic Technologies (KRET) is Russia’s major radio-electronic producer. Established in 2009. Part of Rostec State Corporation Core products: airborne avionics, electronic warfare and reconnaissance means, IFF code identification systems, multiple measuring instruments, non-defence products.
The Concern's enterprises manufacture, among other products, up-to-date household and medical appliances, industrial equipment and control systems for the fuel-energy complex, transport, and machine building industry.
The Concern includes more than 70 research institutes, design bureaus, and production facilities located on the territory of 29 constituent entities of the Russian Federation. It employs approximately 54,000 people.