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 (JV) company in India in the areas of air-to-air missiles, air defence systems and large aerostats. The strategic partnership with one of the world leaders in defence technologies, Rafael Advance Defence Systems of Israel will mark the entry of Reliance Defence in the complex field of air-to-air and air defence systems manufacturing in India, the company said in a press statement. The joint venture will have a 51 per cent holding from Reliance Defence and 49 per cent will be held by Rafael. The JV will be located at Dhirubhai Ambani Land Systems Park, Pithampur, Indore in Madhya Pradesh and will generate around 3,000 skilled jobs. The project will have an initial capital outlay of Rs 1,300 crore, without including the cost of technology. Rafael is a market leader in the air-to-air missile segment and has world-renowned products such as Python and Derby. Similarly, for the air defence systems, the Rafael portfolio includes SPYDER short range and medium range and 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 will offer the entire range of products in these fields to the Indian armed forces. Rafael is also willing to offer solutions for the ongoing ‘buy global’ programmes where it is currently competing, in line with ‘Make in India’ initiatives of the Indian government. Based on the current requirements, the JV will address multiple programmes valued at about Rs 65,000 crore over the next 10 years, the company said.
Source: Business-StandardReliance Defence to partner Rafael for joint venture
Industry: Defense 2016-03-30
