Defence News: (Bloomberg quint except) The Kalyani Group unveiled its facility in Hyderabad to build anti-tank guided missiles for the Indian Army with its Israeli joint venture partner as part of Prime Minister Narendra Modi’s ‘Make in India’ initiative.
The order, which awaits final approvals, includes supplying thousands of Spike missiles valued at around $1 billion over next couple of years, Baba Kalyani, chairman of $2.5-billion forging-to-engineering Kalyani Group, told reports at the launch. The group has inked a 51:49 percent joint venture with Rafael Advanced Defense Systems Ltd.
India, the world’s biggest importer of arms and defence equipment, is looking to boost local manufacturing by pushing domestic private companies to tie up with overseas peers for technology.
The Kalyani Strategic Systems Ltd. and Rafael will manufacture and integrate Spike anti-tank guided missile systems and spice glider bombs in India. It will supply the Indian Army 321 Spike ATGM launchers, 8,356 missiles, 15 training simulators and associated accessories.
All field trials for the missile have been completed, said Kalyani. The missile will have close to 90 percent localised content, he said. The deal involves transfer of technology to state-owned Bharat Dynamics Ltd. and option to produce additional missile launchers and missiles. The state-owned company will integrate ammunition with the missile.
“We have already invested close to $70 million as preparation for this order,” said Yoav Har-Even, president and chief executive officer of Rafael Advanced Defense Systems. The company has been developing and training small and medium enterprises around Hyderabad to supply to the Kalyani-Rafael facility.
This is Kalyani Group’s second partnership with an Israeli company. It struck the first one with BF Elbit Advanced Systems Pvt. for artillery guns. The venture with Rafael Advanced Defense is one of the first to be off the block under ‘Make in India’ to manufacture high tech missiles in India.
“Both partners have invested around Rs 60-70 crore to build the facility. We would be investing another Rs 60-70 crore as we scale operations,” said Kalyani.
Full article at Bloomberg quint