VZCZCXYZ0001
RR RUEHWEB

DE RUEHNE #2595/01 1520618
ZNR UUUUU ZZH
R 010618Z JUN 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 6017

UNCLAS NEW DELHI 002595 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/OEA/M. NICKSON-D/KGAINES/JAY HATFIELD 
USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL 
USDOC FOR 4530/MAC/ANESA/OSA 
ICE HQ FOR STRATEGIC INVESTIGATIONS 
STATE FOR EB/ESP 
 
E.O. 12958: N/A 
TAGS: ETTC ETRD BEXP IN
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: ZETATEK INDUSTRIES LTD., 
HYDERABAD, LICENSE NO. D374611 
 
REF: USDOC 04017 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. Export Control Officer (ECO) Paul Cushman and BIS FSN Prem 
Narayan conducted a Pre-license Check (PLC) at Zetatek Industries 
Ltd. (ZIL), Hyderabad, on May 23, 2007. 
 
¶3. BIS requested a PLC at ZIL, a private sector company, located at: 
Plot No. D-31, Technocrats Industrial Estate, Balangar, Hyderabad 
500037, Tel: 91-40-2372-1000, Fax: 91-40-2372-0305, 
email:rskumar@zetatekindia.com, website: www.zetatekindia.com. ZIL 
was listed as the ultimate consignee for 4 Model 234P04H-K2 and 1 
Model 232HC-K2 amplifiers for vibration shakers controlled under 
EAR99. The license applicant was Copley Controls Corp. (Copley), 
Canton, MA. 
 
¶4. ECO along with FSN Narayan met with R. Siva Kumar (Kumar), 
Chairman and Managing Director, ZIL. 
 
¶5. Kumar was aware of certain BIS regulations.  However, this was 
the first visit by BIS or USG officials to ZIL.  He provided a copy 
of the ZIL corporate brochure, Copley quotations and ZIL supply 
orders for five amplifiers.  Kumar did not submit a BIS-711 or an 
end-use statement.  However, he did inform Copley through an email 
as to how ZIL plans to use the amplifiers. 
 
¶6. Per paragraph 11 of reftel, ZIL informed Copley that they are 
trying to sell their shaker systems to two Indian laboratories, 
namely, Terminal Ballistics Research Laboratory (TBRL), Chandigarh 
and Research Centre Imaraat (RCI), Hyderabad.  These are two of the 
fifty-one laboratories/research establishments that operate under 
the Defence Research Development Organization (DRDO), MOD, GOI.  ZIL 
has no firm orders from either of them. 
 
¶7. Kumar reconfirmed this and stated that although he has no firm 
orders from TBRL or RCI, he is very likely to get orders from these 
two DRDO laboratories.  He proposes supplying a shaker box to TBRL's 
new site in Chandigarh for vibration testing of various products. 
Of the five, two amplifiers will be attached with the shaker box 
that he proposes to supply to TBRL and two will replace the existing 
amplifiers at RCI.  The remaining amplifier will be used with a 
shaker box at his facility for various vibration testing purposes. 
 
¶8. Kumar confirmed the stated end-use of installing the amplifiers 
in ZIL-manufactured shaker boxes.  He stated that the shaker boxes 
are used to test the vibration tolerances of various products.  The 
amplifiers help power motors in the shaker boxes.  The amplifiers 
have necessary protection interlocks to ensure smooth operation of 
the vibration system. 
 
¶9. Kumar appeared over-anxious and seemed intent on winning over the 
BIS Team and earning the "BIS Seal of Approval."  He repeatedly made 
reference to "poison pen campaigns" carried out against him over the 
internet by his competitors.  These poison pen campaigns alleged 
that he was involved in illegal technology transfer.  Kumar 
vehemently denied any involvement in illegal technology transfer. 
He repeatedly emphasized that the amplifiers in question do not even 
require a BIS export license.  He eagerly volunteered that only at 
his insistence had Copley applied for a BIS export license.  He 
stated that he did so because he anticipated ultimately supplying 
the amplifiers to DRDO laboratories and wanted to avoid any 
appearance of impropriety.  ECO and Narayan sensed that Kumar was 
being deceptive during the interview. 
 
¶10. ECO and Narayan were given a tour of the ZIL factory.  The BIS 
Team saw several shaker boxes under construction.  Kumar also 
displayed a shaker box with a German amplifier. 
 
¶11. Established in 1990, ZIL is a closely held, small-sized company 
owned by the Kumar family.  ZIL manufactures environmental test 
chambers, electro-dynamic vibration test systems and centrifuges. 
It also provides technical service support and offers maintenance 
contracts for its products.  ZIL's customers include leading 
research and development organizations and manufacturers of defense, 
space, aeronautical, automobile, telecom and electronic equipment. 
ZIL has marketing offices in Bangalore, Lucknow and Pune.  ZIL 
employs approximately 150 employees.  ZIL's sales turnover for FY-06 
was approximately $18.5 million. 
 
¶12. Recommendation: Based on discussions with Kumar, the products on 
order will form a part of shaker boxes which will be supplied to two 
GOI-owned laboratories, TBRL and RCI.  TBRL is engaged in carrying 
out research on warhead designs for conventional weapons and RCI is 
 
engaged in carrying out research on tactical missile systems such as 
anti-tank, surface-to-air, and air-to-air.  Kumar's business 
operations appeared legitimate but ECO cannot offer an assessment as 
to how the products on order would ultimately be used by TBRL and 
RCI.  Based on this fact and Kumar's apparent deceptiveness, the PLC 
remains unfavorable. (PSCUSHMAN/PNARAYAN) Mulford