Kalyani Rafael Advanced Systems (KRAS), a joint venture between Kalyani Strategic Systems Ltd, and Israel’s Rafael Advanced Defence Systems inaugurated its facility in Hyderabad to manufacture anti-tank guided missile systems for the Indian Army and thereafter strengthen the facility to make it a hub for supplies to other markets in South-East Asia.
The facility, the first in the private sector to manufacture missiles, plans to start production in few weeks. This is in line with the Government’s Make in India initiative, where the joint venture will invest in high-end technology and advanced manufacturing techniques to design, develop and manufacture weapon systems for the Indian Armed Forces.
Baba Kalyani, Chairman, Kalyani Group, said, “The path breaking visit of our Prime Minister to Israel recently has reaffirmed the importance of bilateral defence cooperation between the two nations. This technology-based partnership is our endeavour to develop Advanced Defence Systems and Remote Weapon System capabilities within India and is a testament to this increasing co-operation between Israel and India in a strategic sector”.
He said so far Rs 60 crore to Rs 70 crore have been invested and would be adding a similar additional amount once orders start coming in.
Rafael President & CEO, Yoav Har-Even said, “Rafael has been increasingly looking at cooperation with India in the defence and aerospace arena. We are eager to be a strategic partner in addressing India’s defence modernisation needs.” The company has so far invested $70 million, he informed.
Termed as the largest yet FDI in defence, Kalyani holds 51% in the JV while Rafael holds 49%.
Kalyani said the product would have 90% localisation as they developed sub-contractors and supply system.
The greenfield facility is expected to create about 1,300 jobs both direct and indirect and will play a critical role in import substitution. The 24,000-sq ft facility will develop a wide range of advanced capabilities like Command Control and Guidance, Electro-Optics, Remote Weapon Systems, Precision Guided Munitions and System Engineering for System Integration. Given the potential in the defence sector, the venture plans to expand and broaden the product portfolio.