Rafael Advanced Defense Systems Ltd. today announced that that it had inaugurated a new plant in Hyderabad, India, together with Indian company Kalyani Group. The plant will manufacture Spike antitank missiles.
The estimated $900 million deal was agreed three years ago. Rafael said today that in addition to Spike missiles, the joint plant would likely also make other weapons. Early this year, Rafael signed a cooperation agreement with Kalyani for founding a joint company - Kras.
Kalyani owns 51% of Kras, while Rafael owns 49%, in accordance with Indian Prime Minister Narendra Modi's policy of requiring foreign companies making sales to his country to conduct their manufacturing in India and transfer know-how to it. In addition, foreign companies signing agreements with the authorities in India are required to establish joint companies with Indian companies, with the Indian company holding a controlling interest in the joint company.
"Rafael is committed to the Indian government's policy. Local production and opening the plant prove this. We will continue searching for additional opportunities for overseas cooperation," said Rafael CEO Major General (res.) Yoav Har-Even. Rafael sources told "Globes" today that the new Hyderabad plant would constitute future infrastructure for additional manufacturing activity by Rafael, because the company plans to compete in the coming years in a large number of procurement tenders that the Indian Ministry of Defense is planning to publish. Thanks to credit already accumulated by Rafael in the Indian market, the company is promoting several weapons systems of various types in India.
Published by Globes [online], Israel Business News - www.globes-online.com - on August 3, 2017
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