The Kalyani group, on Thursday, announced a joint venture with Rafael Advanced Defense Systems of Israel to develop and manufacture a wide range of technology and systems.
This is the group’s third joint venture business. In the new venture, the Kalyani group will hold 51 per cent stake and Rafael the balance. The announcement comes few months after the government’s move to increase the foreign direct investment cap in defence to 49 per cent.
In the initial stage, the joint venture company will look at domestic defence sector. “Rafael has been an active participant in the Indian defence market for the past few years. As part of our global strategy, we form alliances to develop military applications based on our proprietary technologies. In the Kalayani group, we see a lot of synergy and opportunities for growth in new markets. For us, India is a strategic market,” Kalyani group Chairman and Managing Director Baba Kalyani said.
“This will be one of the first major joint ventures to be formed under the new FDI limits,” the company said.
“We will look at the defence sector, and we are already in the process of acquiring land for setting up the new venture,” Bharat Forge Executive Director Amit Kalyani said.
Besides, the group is aiming at a business of around $100 million from the aerospace sector within two years.
“The aerospace sector offers huge opportunities for us. We are targeting to hit $100 million revenue in the next two years. Once we reach that target, we will like to grow it multiple times,” said Mr. Amit Kalyani.The group, expects revenue from its defence business to grow significantly than the aerospace business.
“The kind of programmes which we are bidding for over the next five years is in excess of $10 billion. This gives us a huge opportunity,” added Mr. Kalyani.
