Kalyani Group signs JV with Rafael

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India's Kalyani Group on Thursday announced a joint venture with Israel's Rafael Advanced Defence Systems Israel to develop and manufacture a wide range of technology and systems. The products envisaged under the JV include missile technology, remote weapons systems, and advanced armour solutions. Kalyani Group will hold a 51% stake, with the rest being held by Rafael However, neither side disclosed the size of investment in the JV. Kalyani Group chairman and managing director Baba Kalyani only said the investment would be "substantial". "For the past over one year we were in talks with Rafael to explore a joint venture opportunity. Now, we have entered into an agreement with them. It is absolutely essential for us to have a tie up with a foreign partner as they bring technology and expertise on production." he said. "This is the first major joint venture to be formed after the government hiked FDI in the defence to 49%," he added. He said Rafael will also help the joint venture in recruiting skilled workers as it is a biggest challenge the Indian companies are facing in the event of increased focus on manufacturing products for the armed forces. To begin with, the JV will explore orders from the Indian defence forces, and may look at exports at a later stage. On the product side, the integration of missile systems will be done by Bharat Dynamics Ltd, a listed defence company based in Hyderabad. "We are looking at land near Hyderabad to set up a manufacturing facility and we wish to put in place a new factory within a year," he told Business Standard.


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Kalyani Group signs JV with Rafael to develop missile tech, defence systems | Business Standard News