Reliance Infrastructure forays into defence sector
Reliance Infrastructure formed three wholly owned subsidiaries to pursue growth opportunities in defence sector
Mumbai: Anil Ambani-promoted Reliance Infrastructure Ltd on Thursday said it has set up three units to look at defence sector opportunities.
In its filing to BSE, the company said it has formed three wholly owned subsidiaries—Reliance Defence Systems Pvt. Ltd, Reliance Defence Technologies Pvt. Ltd and Reliance Defence and Aerospace Pvt. Ltd —to pursue growth opportunities in the defence sector.
It did not disclose details of investments.
India is expected to have a defence budget allocation of $620 billion between financial year 2014 and 2022, of which 50% would be spent on capital expenditure.
The annual opportunity for Indian companies—both public sector undertakings and private companies—is expected to reach $41 billion in size by financial year 2022, said a report released by industry association the Federation of Indian Chambers of Commerce and Industry (Ficci) and financial services company Centrum Capital Ltd in February 2015.
Major defence public sector undertakings are Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Earth Movers Ltd (BEML), Mazagon Docks Ltd (MDL) and Bharat Dynamics Ltd. Of these, BEL and BEML are listed on stock exchanges.
Large private defence firms are all part of listed entities like Larsen and Toubro Ltd, Tata Power Co. Ltd, Tata Motors Ltd, Mahindra and Mahindra Ltd, Bharat Forge Ltd, or unlisted unlisted holding companies like Tata Sons Ltd.
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