In order to expand its footprint in the defence manufacturing sector, Reliance Defence Ltd of the Anil Ambani Group has entered into a joint venture with Rafael Advanced Defence Systems Ltd, Israel.
The initial capital outlay for the JV company, excluding the technology cost, will be ₹1,300 crore. The company will be located at Pithampur near Indore, Madhya Pradesh, and it will make air-to-air Missiles, Air Defence Systems and Large Aerostats (airships), Reliance Defence said in a media statement.
As per the current guidelines of the Centre, 51 per cent holding in the JV would be from Reliance Defence and the rest would be held by Rafael. The Israeli company develops and manufactures defence systems for its own armed forces, as well as customers across the world.
Rafael has already provided large aerostat systems to the Indian Air Force for surveillance, reconnaissance, communication and intelligence gathering requirement. The partnership will enable Reliance Defence to get a beachhead in the complex field of Air to Air and Air Defence Systems manufacturing in India, the statement said.
The JV will also provide a big thrust for the indigenous development of high precision weapon systems in India. At Pithampur, where Reliance Defence is in the process of setting up Dhirubhai Ambani Land Systems Park, 3,000 skilled jobs are expected to be created. Reliance Defence in the statement claimed that based on the current requirements, the JV will address multiple defence programmes valued at more than ₹65,000 crore over the next 10 years.
The Israeli company has a leadership position in the air-to-air missile segment with products such as Python and Derby. For the air defence systems, its portfolio includes SPYDER and Barak missiles family, the statement said.
Reliance has done several agreements with international defence majors over the past few months. This includes Emirates Defence, Thales, Almazantey and United Ship Building Company.