Reliance Defence forms JV with Israel's Rafael for missiles & defence systems

Reliance Defence Ltd, the wholly owned subsidiary of Anil Ambani-controlled Reliance Infrastructure Ltd, has entered into an agreement to form a joint venture with Israeli defence equipment manufacturer Rafael Advanced Defence Systems Ltd. The joint venture will focus on the highly specialised 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. The strategic partnership with technology power house and one of the world leaders in defence technologies, Rafael Advanced Defence Systems Ltd of Israel will mark the entry of Reliance Defence in the complex field of air-to-air missiles and air defence systems manufacturing in India,” said Reliance Defence on March 29, 2016.
   
In line with the current guidelines of the Government of India, Reliance Defence will own 51 percent stake in the joint venture, while Rafael will hold the remaining.
 
The joint venture company will be located at Pithampur, Indore (Madhya Pradesh) and will generate more than 3000 highly skilled jobs. The project will 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 product like Python and Derby. Similarly, for the air defence systems, 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, 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 company even for the ongoing ‘Buy Global’ programs where it is currently competing, in line with ‘Make in India’ initiatives of the Indian government,” added the release.
 
Based on the current requirements, the joint venture company will address multiple programs valued at more than Rs 65,000 crore over next ten years.