Dassault Reliance Aerospace expects a windfall from Indo-France Rafale deal

Dassault Reliance Aerospace, the joint venture formed by Reliance Aerospace and France-based Dassault Aviation, is expected to be the major beneficiary of the agreement signed by India to acquire 36 Rafale fighter aircrafts from France. The agreement includes a 50-percent offset obligation which is the largest ever offset contract in the history of India.

“The joint venture will be a key player in the execution of offset obligations, as a part of the 36 Rafale fighter jets purchase agreement at a value of Euro 7.87 billion, or about Rs 59,000 crore signed between France and India on September 23, 2016,” said Reliance Aerospace, a part of Anil Ambani-promoted Reliance Infrastructure Limited, in a press release. 

Yesterday, Reliance Aerospace formed a joint venture with France’s Dassault Aviation, the manufacturer of Rafale fighter aircraft, to develop major Indian programs with high levels of technology transfer to benefit the entire aerospace sector. Dassault Aviation, a subsidiary of Dassault Group, is an aircraft manufacturer of military, regional, and business jets.

The proposed strategic partnership between Dassault and Reliance will also focus on promoting research and development projects under the IDDM program (Indigenously Designed, Developed and Manufactured), a new initiative of India’s Defence Ministry.

“The formation of this joint venture with Reliance Aerospace led by Anil Ambani’s Reliance Group illustrates our strong commitment to establish ourselves in India and to develop strategic industrial partnerships under the Make in India policy promoted by the Indian Government,” said Eric Trappier, chairman & CEO, Dassault Aviation.

Anil Ambani, chairman of the Reliance Group, added, “We are delighted to partner a world leader in aviation like Dassault Aviation, and a visionary leader like Eric Trappier. This is a transformational moment for the Indian aerospace sector and for Reliance Infrastructure’s subsidiary Reliance Aerospace.”

With more than 8,000 military and civil aircraft delivered to more than 90 countries over the past 60 years, and having logged nearly 28 million flight hours to date, Dassault Aviation can offer recognised know-how and experience in the design, development, sale and support of all types of aircraft, from the Rafale fighter to the Falcon range of high-end business jets, as well as military unmanned air systems. In 2015, Dassault Aviation reported revenues of Euro 4.20 billion. 

In January 2015, the Reliance Group entered the Indian defence manufacturing sector and acquired Pipavav Defence and Offshore Engineering Company Limited (PDOECL) giving it access to a state-of-the-art naval shipyard. The group is also rapidly developing its air, land and sea defence manufacturing capabilities in collaboration with leading global defence firms.