Kalyani Group signs JV with Rafael Advanced Defence Systems
19 Feb 2015
The $2.5-billion, Pune-based Kalyani Group has entered into a joint venture with Israel's second-largest defence company Rafael Advanced Defense Systems Ltd. to manufacture high technology systems for India's defence sector.
The companies have formed a joint venture firm, in which Kalyani Group will hold a 51 per cent stake, while the remaining 49 per cent will be held by the Israeli company.
Further financial terms of the JV were not disclosed.
the Indian company said in a statement the initiative was in line with the 'Make in India' policy of the centre, and will enable the development and production of high-end technology systems within the country. This will include a wide range of technologies and systems, like missile technology, remote weapon systems and advanced armour solutions..
Baba Kalyani, chairman and managing director of the Group, said ''Kalyani Group has been at the forefront in initialising the 'Make in India' campaign. As part of this campaign we aim to develop and produce high end technology systems and expand the defence industry base in our country. We believe in the vision of 'Make in India' and our proposed joint venture with Rafael is a step in this direction."
The Kalyani Group has high technology, engineering and manufacturing capabilities across critical sectors such as engineering steel, automotive, industrial, renewable energy, defence, Urban Infrastructure and specialty chemicals.
''Rafael has been an active participant in the Indian Defence Market for the past few years. We have always endeavoured to contribute to the modernisation of the Indian Armed Forces. As part of our global strategy, we form alliances to develop military applications based on our proprietary technologies and in Kalyani Group we see a lot of synergy and opportunities for growth in new markets and especially in India which is strategic market for us," said Itzhak Gat, Chairman at Rafael.
On Wednesday, Kalyani Group's flagship company, Bharat Forge Ltd, signed a multi-year contract with Boeing Commercial Airplane to supply titanium forgings for wing components for the Next-Generation 737 and 737 MAX.
Under the agreement, Bharat Forge will supply pre-machined forgings from its facilities in Pune and Baramati to Boeing, starting in the first quarter of 2016. The titanium parts will be heat-treated, shaped in a forging press, and machined by Bharat Forge before being shipped to Boeing Portland for finish achining into components. The components then will be installed in the Next-Generation 737 and 737 MAX wings at the Final Assembly plant in Renton, Wash.