Hyderabad: Israel’s Rafael Defense Systems Ltd has formed a joint venture with Kalyani Group to produce anti-tank guided missiles for the Indian armed forces that are also likely to be exported to South-East Asian countries.
Kalyani Rafael Advanced Systems Pvt. Ltd, as the joint venture is called, has been set up with an investment of Rs60-70 crore, with Kalyani Group holding 51% stake and the Israeli partner the rest.
The Spike missiles are supplied by Israel to 20 countries, including Nato members.
“This is the first private sector facility which will become a missile house," said Kalyani Group chairman Baba Kalyani.
“We will start producing these missiles in weeks for Indian armed forces and we will be seeking government permissions to export to South-East Asian countries like Myanmar, Vietnam, Philippines, Indonesia. These are the potential markets for us."
The joint venture is linked to the request Indian armed forces made in 2010 for these missiles. The order from the Indian forces is worth about $1 billion, spread over a couple of years, and the final approvals are likely to come in a few weeks, Kalyani said.
“This is the first such advanced missile system under ‘Make in India’," Kalyani said, referring to the government programme aimed at encouraging the manufacturing. The facility will be 90% localized and parts will be procured locally in Hyderabad. It will create about 300 direct jobs and 1,000 indirect jobs, Kalyani said. “The establishment of this facility is a sign of our commitment to walk the talk in terms of partnering with Indian industry towards indigenous manufacture," said Rafael president and CEO Yoav Har-Even.
The 24,000 sq.ft facility was set up in 10 months and was inaugurated by Telangana industries ministers K.T. Rama Rao on Thursday.
This is the second joint venture factory with an Israeli company by Kalyani Group, which recently announced setting up of a artillery guns facility in Pune.
The Hyderabad facility also plans to make gliders bombs as the next product for Indian Armed Forces.