Israeli government-owned Rafael Advanced Defense Systems Ltd. and Indian company Kalyani Group today announced an agreement to establish a joint venture to produce missile systems, remotely controlled weapons positions, and advanced systems for the protection of tanks and APCs. Kalyani will own 51% of the new company, and Rafael 49%.
Kalyani has a $2.5 billion annual turnover and 12,000 employees, and owns companies active throughout the world in defense, iron engineering, automation, and renewable energy.
The agreement between Rafael and Kalyani was signed during the Aero India weapons exhibition now taking place in Bangalore, India, which the leaders of the two companies are attending. 15 Israeli defense companies are taking part in this prestigious exhibition, presenting their developments at a pavilion set up by the Ministry of Defense Foreign Defense Assistance and Defense Export Organization (SIBAT).
It is believed that according to understandings reached before the agreement was signed, the production lines to be set up in India will produce components for Rafael's systems, including the Barak 1 missile, the Spike anti-tank missile, and others. The new company's production infrastructure is also expected to accommodate future production in India of the Magic Wand (David's Sling) system for protection of armored vehicles against anti-tank missiles.
Last October, the Indian Ministry of Defense reported a huge $525 million deal with Rafael for providing 8,000 Spike anti-tank missiles and 300 launchers to India. This comes on top of another deal reported a month earlier, under which Rafael will supply Barak 1 missiles to the Indian navy for use on its warships.
This deal amounts to an estimated NIS 500 million. "We have always wanted to contribute to the modernization of the Indian armed forces," said Rafael chairman Brigadier General (res.) Yitzhak Gat, referring to the agreement with Kalyani. "This agreement is part of our global strategy of cooperative efforts in military development, based on Rafael's technologies. The two companies have a great deal of synergy and joint opportunities for growth in new markets, including the Indian market, which is a strategic market for us."
Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015