Adani Defence picks up 51% stake in small arms manufacturer1 min read . Updated: 11 Sep 2020, 06:05 PM IST
- The company has bought stake in the small arms business of Gwalior-based PLR Systems that produces machine guns, carbines and other weapons for the domestic and export markets, in an all-cash transaction
MUMBAI: Adani Land Defence Systems and Technologies Ltd, a step down subsidiary of Adani Enterprises, has bought 51% stake in the small arms business of Gwalior-based PLR Systems in an all-cash transaction.
PLR Systems produces machine guns, carbines and other weapons for domestic and export markets. It was incorporated in 2013 and supplies indigenously manufactured defence equipment to armed forces. Israeli defence manufacturer IWI holds 49% stake in the company.
The deal will help the Adani group company acquire capabilities ranging from unmanned aerial vehicles (UAVs) to helicopter systems and major aero structures.
In a stock exchange filing, Adani Land Defence Systems and Technologies Ltd said it has acquired 51% of shares of PLR Systems Private Ltd from Fouraces Systems India Private Ltd on Thur. The company said PLR will produce “indigenous equipment to the 1.2 million army personnel and an equal number of para-military forces and state police forces and shall help achieve self-reliance aligned to the Make in India and Atma-Nirbhar Bharat initiative." Adani Defence said it has already received approval from the Ministry of Home Affairs for the acquisition.
The Economic Times had reported in January that PLR Systems is poised to pick up major orders from the defence ministry, with final discussions underway for 16,400 light machine guns for which IWI is the lead contender while a larger competition for 41,000 guns is also underway. Besides, paramilitary forces and state police, too, have requirements for these small arms.
In February, Adani Elbit Advanced Systems India Ltd, a joint venture between Adani Defence & Aerospace and Elbit Systems, Israel set up the first private UAV manufacturing complex at Adani Aerospace Park in Hyderabad to indigenize unmanned aerial platforms. The only Hermes 900 production facility outside Israel which inaugurated in December 2018, it has started exporting Hermes900 Unmanned Aerial Platform to international customers.
Adani Defence & Aerospace and Elbit have agreed to set up a design and development center focusing on co-developing defence technologies aligned to the global requirements.