Indian Microwave products manufacturer, Astra will form a joint venture with Isreal’s Rafael defense systems for production and supply of tactical radio communication, electronic warfare and signal intelligence systems.
The venture will commence with an investment of $20 million (INR 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 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 $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 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 Armor Solutions.