Reliance Forms JV with Rafael, to Focus on Missiles & Aerostats

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Israel’s Rafael Advanced Defense Systems and the Indian Reliance Defence company have signed today at Defexpo 2016 a joint venture (JV) that will provide the local content of major defense programs Rafael is already involved with and intends to compete in. The JV, one of the biggest joint ventures between an Indian company with a foreign OEM, addresses current and future programs, with potential value of more than US$10 billion (Rs 65,000 Crore) over the next ten year.

Among the areas of activity for the new JV are air/air and surface/air missile systems, in which Rafael is among the world’s leaders. Rafael is already involved in several Indian air-defense programs, including Barak-1, Barak-8 and Spyder. The company is also offering the Indian Navy the new C-DOME, a navalized version of the Iron Dome system, for shipborne air defense.

Another area of activity for the JV will be large aerostats, for which Rafael provides a range of combat-proven solutions. Rafael has already provided large aerostat systems to the Indian Air Force, meeting it’s surveillance, reconnaissance, communication and intelligence needs. The JV is positioned to compete for follow-on sales of such systems, required to tighten air surveillance and wide area coverage along the northern territory.

Private sector company Reliance Defence Ltd. is a wholly owned subsidiary of Reliance Infrastructure Ltd. Rafael Advanced Defence Systems Ltd is an Israeli company owned by the Israeli government. Reliance will have 51% holding in the JV with Rafael holding the remaining 49%, per the current guidelines of Government of India.

The Joint Venture will be located at Dhirubhai Ambani Land Systems Park, Pithampur, Indore in the state of Madhya Pradesh and will generate more than 3,000 highly skilled jobs. The project will have an initial capital outlay of more than Rs 1,300 Crore, ($200 million) excluding the cost of technology.

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 even for the ongoing “Buy Global” programs where it is currently competing, in line with “Make in India” initiatives of the Indian Government.

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