Rafael has opened a missile manufacturing plant in India along with its Indian partner Kalyani Strategic Systems.
The factory would manufacture Spike anti-tank missiles which are part of half a billion dollar deal with India, the company said in a statement Thursday.
The factory was inaugurated Thursday in the city of Hyderabad in a ceremony attended by Indian government ministers, Israel's ambassador to India, and the heads of Rafael and Kalyani.
Rafael President and CEO Yoav Har-Even said they also plan to produce air-to-surface missiles. He said the production of weapons systems will be at the request of the Indian armed forces.
Rafael will transfer the technology for missile manufacturing but its CEO said it would be Indian Spike missile from Indian missile house with over 90 per cent localisation.
Baba N. Kalyani, chairman, Kalyani Group said it was “not a screwdriver assembly but a real manufacturing facility”. The company has developed sub-contractors and supply system in and around Hyderabad.
“We are hoping that we will have more business because we are looking at other products like glider bombs attached to aircrafts and are used by the Air Force,” said Kalyani.
The deal includes 8,000-plus missiles, 300-plus launchers and technology transfer. Further, the deal is likely to expand as the Army aims to equip its 382 infantry battalions and 44 mechanised regiments with new missiles.
The facility, the first in the private sector to manufacture missiles, plans to start production in few weeks. Termed as the largest yet FDI in defence, Kalyani holds 51 per cent in the JV while Rafael holds 49 per cent.