March 29, 2016
Anil Ambani-led Reliance Defence Ltd, and Rafael Advanced Defence Systems Ltd of Israel have decided to set up a joint venture company in India in the highly specialized areas of air-to-air missiles, air defence systems and large aerostats, that will oversee projects worth USD 10 billion (over Rs 65,000 crore) in ten years.
The project will have an initial capital outlay of more than Rs.1,300 crore, excluding the cost of technology and the venture will have 51 per cent holding from Reliance Defence and 49 per cent by Rafael as per the current guidelines of the government.
“The strategic partnership with technology power house and one of the world leaders in defence technologies, Rafael Advance Defence Systems will mark the entry of Reliance Defence in the complex field of air-to-air and air defence systems manufacturing in India,” said a company statement adding that the joint venture will give a big thrust into the field of indigenous production and development of high precision and state-of-the-art weapon systems in India.
“In one of the biggest joint ventures between an Indian company with any original equipment manufacturer (OEM), Reliance Defence Ltd, a 100 per cent subsidiary of Reliance Infrastructure Ltd and Rafael Advanced Defence Systems Ltd have decided to set up a joint venture company in India in the highly specialised areas of air-to-air missiles, air defence systems and large aerostats,” the company said in a statement.
The new venture will be located at Dhirubhai Ambani Land Systems Park at Indore in Madhya Pradesh and will generate more than 3,000 highly-skilled jobs.
Rafael has products like Python and Derby in the air-to-air missiles system, Spyder range in air defence systems and the Barak missiles family of surface-to-air missiles in the short and medium range. Rafael has already provided large aerostat systems to the Indian Air Force for meeting its surveillance, reconnaissance, communication and intelligence needs. The two companies, through the joint venture, will offer the entire range of products in these fields to the Indian Armed Forces.
“Rafael is also willing to offer solutions through the joint venture even for the ongoing 'buy global' programs where it is currently competing, in line with 'Make in India' initiatives, of the Indian Government,” the statement said.
On 4 November, the Reliance Infrastructure board said new high-growth opportunities in the defence sector, arising from the Make in India and Skill India policies, serve vital national priorities and have several attractive features.
Reliance Defence has industrial licences for the full spectrum of military platforms and is the fastest emerging private sector enterprise in the development, manufacture and supply of defence aerospace, land and naval platforms and equipment.
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