Indian Reliance and Israeli Rafael have agreed to set up a joint venture company in India to manufacture air-to-air missiles, aerostats and air defense systems.
The strategic partnership with Rafael Advance Defence Systems of Israel, will mark the entry of Reliance Defence in the complex field of air-to-air and air defence systems manufacturing in India, the company said in a press statement.
The Reliance and Rafael JV will have 51% holding from Reliance Defence and 49% by Rafael according to the current guidelines of Government of India.
The joint venture will be located at Dhirubhai Ambani Land Systems Park, Pithampur, Indore in Madhya Pradesh. The project will have an initial capital outlay of more than Rs 1,300 crore (US $195 million), without including the cost of technology.
Rafael's portfolio includes SPYDER short-range and medium-range missiles and the Barak 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 JV, will offer the entire range of products in these fields to the Indian Armed Forces. Rafael is also willing to offer solutions, through the JV, even for the ongoing "Buy Global" programs where it is currently competing, in line with the 'Make in India' initiatives of the Indian Government.
Based on the current requirements, the JV will address multiple programs valued at more than Rs 65,000 crore (US $9.8 billion) over the next 10 years, the company said.