Astra Microwave Products today said it will form a joint venture company with Israel's Rafael Advanced Defence Systems for production and supply of tactical radio communication, electronic warfare and signal intelligence systems.
The venture will commence with an expected investment of USD 20 million (approx Rs 133 crore) in the first two years.
"The company have signed a term sheet for formation of joint venture company (JV) with Rafael Advanced Defence Systems Ltd., Israel for joint production and supply of tactical radio communication systems, electronic war-fare systems and signal intelligence systems," Astra Microwave Products said in a BSE filing.
It further said: "The JV will operate from Hyderabad and is expected to start business development activities in the first half of 2016. About USD 20 million is expected to be invested in the first two years in the JV."
Astra Microwave Products said to start with Astra and Rafael will own 51:49 per cent stake in the JV and will become 50:50 subject to regulatory approvals.
In February this year, Kalyani Group and Rafael Advanced Defense Systems Ltd announced formation of a JV company in India to develop and produce high-end technology systems within the country, including a wide range of technologies and systems, like missile technology, Remote Weapon Systems and Advanced Armour Solutions.
Shares of Astra Microwave Products were trading at Rs 111.50 apiece, up 0.27 per cent on BSE.
