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 highlyspecialised areas of air-to-air missiles, air defence systems and large aerostats.
The joint venture will provide big thrust into the field of indigenous production and development of high precision and state-of the-art weapon systems in India, a statement from the company said.
The strategic partnership with technology power house and one of the world leaders in defence dechnologies, Rafale Advance Defence Systems of Israel, will mark the entry of Reliance Defence in thecomplex field of air-to-air and air defence systems manufacturing in India, the statement said.
Reliance and Rafale joint venture would have 51 per cent holding from Reliance Defence and 49 per cent by Rafael as per the current guidelines of Government of India.
The joint venture would be located at Dhirubhai Ambani Land Systems Park, Pithampur, Indore in Madhya Pradesh and would generate more than 3,000 highly-skilled jobs.
The project would have an initial capital outlay of more than 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 like Python and Derby. Similarly, for the air defence systems, Rafael portfolio includes ‘Spyder’short-range and medium-range as well as Barak missiles family of surface-to-air missiles in the short and medium ranges. 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’ programmes where it is currently competing, in line with ‘Make in India’ initiative of the Indian government.
Based on the current requirements, joint venture would address multiple programmes valued at more than Rs 65,000 crore over next ten years, the statement added.
Reliance, Rafael to set up joint venture company