Astra And Rafael Form Joint Venture Company

Astra And Rafael Form Joint Venture Company

This post is also available in: heעברית (Hebrew)

Hyderabad-based Astra Microwave Products said it will form a joint venture company with Israel’s Rafael Advanced Defence Systems for production and supply of tactical radio communication, electronic warfare and signal intelligence systems. Astra Microwave designs, develops and manufactures sub-systems for radio frequency and microwave system used in defence, space, meteorology and telecommunication.

Rafael develops and manufactures advanced defence systems for Israeli defence and foreign customers. The company offers various products ranging from underwater systems through naval, ground, and air superiority systems to space systems.

About $20 million is expected to be invested in the first two years in the joint venture company. Astra Microwave Products said to start with Astra and Rafael will own 51:49 per cent stake in the joint venture and will become 50:50 subject to regulatory approvals.

In February this year, Kalyani Group and Rafael Advanced Defense Systems Ltd announced formation of a joint venture company in India to develop and produce high-end technology systems within the country, including a wide range of technologies and systems, like missile technology, Remote Weapon Systems and Advanced Armour Solutions.

Prime Minister Narendra Modi’s emphasis on defence equipment manufacturing as part of his ‘Make in India’ initiative to encourage manufacturing and attract foreign investment has seen a scramble among companies for licences to manufacture defence equipment.

India will see a total defence budget allocation of $620 billion between fiscal years 2014 and 2022, of which 50% will be capital expenditure, according to a report released in February by lobby group Federation of Indian Chambers of Commerce and Industry (Ficci) and financial services company Centrum Capital Ltd.

Subscribe to our newsletter.