Indian Relaince Defence Systems and Israel's Rafael Advanced Defense Systems have signed a Joint Venture at the Defexpo 2016. The JV is the biggest between an Indian and a foreign company. The deal has a potential value of more tha $10 billion dollars.
The new joint venture will collaborate in the field of air/air and surface & air missile systems.
Another area of the collaboration will be large aerostats. Rafael Advanced Defense systems already provide the aerostat systems to the Indian Air Force for meeting it's survellance, reconnaissance , communications and intelligence reuirements.
The JV will assist to complete the follow on orders of such systems.
In the JV Relaince will have 51% holding with Rafael holding the rest 49% as per the current guidelines of the government of India. Dhirubhai Ambani land Systems Park in Pithampur, Madhya Pradesh is selected as the location for the joint venture.
The JV is expected to generate around 3,000 highly skilled jobs. The project will have the intial capital investment of around $200 million which does not include the cost of technology transfer.