Reliance Defence signs pact with South Korean firm to boost defence production
18 April 2017
Anil Ambani group firm Reliance Defence, a wholly-owned subsidiary of Reliance Infrastructure, has signed a strategic partnership with South Korean defence major LIG Nex1 to jointly manufacture military hardware for India's armed forces, the company said on Monday.
According to sources, the partnership will target $5-billion programmes, which could potentially include a $2-billion indigenous defence production.
"Currently, there are multiple programmes for Indian armed forces that the two companies plan to address together. This will include improving the existing weapons system which is part of LIG Nex1's portfolio to meet specific requirements of the Indian armed forces. Cumulative value of these programmes being targeted will exceed multi-billion," the company said.
The two companies will explore opportunities in a range of defence products required by the Indian armed forces, leveraging on LIG Nex1's capability in heavy weapons like anti-ship missiles, anti-tank guided missiles and guided rockets. They have also identified air defence and surveillance radar systems that can be manufactured in India as a potential area of cooperation.
Reliance Defence has industrial licences for military platforms and is the fastest-emerging private sector enterprise in the development, manufacture and supply of defence aerospace, land and naval platforms and equipment.
Reliance Infrastructure has decided to go slow on asset-heavy projects and focus more on its defence business. It acquired Pipavav Defence & Offshore Engineering to foray into the sector. It has signed collaboration deals with international defence manufacturers to manufacture in India for the armed forces.