India’s first private sector missile sub-systems manufacturing facility, a joint venture between the $2.5 billion Kalyani Group and Israel’s Rafael Advanced Defence Systems Ltd., was inaugurated near Hyderabad on Thursday, August 3, 2017.
In less than 10 months of commencing work, Kalyani Rafael Advanced Systems (KRAS), a joint venture between Kalyani Strategic Systems Ltd and Rafael Advanced Defense Systems Ltd of Israel, has inaugurated a facility to manufacture missile systems.
Located about 40 km from here and close to the new international airport, the project will 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.
Kalvakuntla Taraka Rama Rao, Minister of IT & Panchayat Raj inaugurated its facility on Thursday and shared about the new facility which is going to function from Telangana on twitter.
Inaugurated India’s first private sector missile manufacturing facility; Kalyani Rafael Advanced Systems came up in record time of 10 months pic.twitter.com/QfknXXmoM5Your Ad here
— KTR (@KTRTRS) August 3, 2017
Make in India initiative
The project set up in a record time, is considered first such facility which makes missile systems by a private player in the country. 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.
Set with an initial outlay of about ₹70 crore, the facility may see additional investment as the product range goes up. First set of products are set to roll out within few weeks from now.
The greenfield joint venture project is expected to create about 1,300 jobs both direct and indirect and will play a critical role in import substitution. Referred to as KRAS, this will be India’s first private sector advanced defence sub-systems manufacturing entity. 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.
After inaugurating the facility, Kalvakuntla Taraka Rama Rao, Minister for Industries, Commerce, and IT, Telangana, said: “The State will extend all necessary support for further expansion plans.”
Baba N. Kalyani, Chairman, Kalyani Group, said, “The path breaking visit of Prime Minister to Israel last month 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.”
Yoav Har-Even, President & CEO, Rafael Advanced Defense Systems Ltd, 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.”
Given the potential in the defence sector, the venture plans to expand and broaden the product portfolio.