Kalyani Rafael gets $100-million order for 1,000 Barak-8 MRSAM missile kits for Indian Army and IAF

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Published: July 13, 2019 10:38:28 AM

Hyderabad-based KRAS is a 49:51 ratio joint venture between Isreal’s Rafael Advanced Systems and Kalyani Strategic Systems, with the Indian partner holding 51%

KRAS started its Hyderabad facility in 2017 with an investment of about Rs 70 crore and was the first to get single-largest FDI for defence manufacturing in the country. (Website image)KRAS started its Hyderabad facility in 2017 with an investment of about Rs 70 crore and was the first to get single-largest FDI for defence manufacturing in the country. (Website image)

Kalyani Rafael Advanced Systems (KRAS) has secured a $100-million order from Israel-based Rafael Advanced Defense Systems to supply 1,000 Barak-8 MRSAM missile kits for the Indian Army and Air Force, which, in turn, would be supplied to Bharat Dynamics (BDL) for further integration.

Hyderabad-based KRAS is a 49:51 ratio joint venture between Rafael Advanced Systems and Kalyani Strategic Systems (KSSL), with the Indian partner holding 51%.

“This order is a testimony to the capabilities that exist in the country and how they can be utilised to truly achieve the aim of Make in India. We are confident of executing many more such orders,” Kalyani Group chairman Baba Kalyani said. “Our strength lies in creating capabilities to understand processes and not products,” he said.

Keeping with its commitment to Make-in-India, the JV partners have invested in production facilities, state-of-the-art engineering services and extended life cycle support for systems supplied to Indian defence force. KRAS is expected to ramp up its employee strength to 300 technical experts by 2023.

KRAS started its Hyderabad facility in 2017 with an investment of about Rs 70 crore and was the first to get single-largest FDI for defence manufacturing in the country. “Our next goal is to look at exports from the Hyderabad facility. We will be looking at joint development of defence products along with the expertise from our partner,” he added.

The KRAS facility has been exporting defence systems and achieved business of $15 million last year and hopes to clock about $30 million by next year.

“KRAS is the first private missile production facility in India to produce interceptors, missiles, besides deployment of defence systems and providing long-term maintenance of missiles and equipment,” Pini Yungman, Rafael executive vice-president and general manager of the Air & Missile Defense Systems Division, said.

Meanwhile, the company is planning to set up a second manufacturing facility in Telangana to enhance production capability to cater to domestic and also operate as an export facility. “We will be expanding facilities, capabilities including setting up a second manufacturing facility in Telangana,” he said. “We are in talks with the Telangana government for about 100 acres land for the second unit,” he added.

For a query on the company’s plan for auto sector, Kalyani said: “Defence products have a long cycle. We started getting into private sector defence only six years ago. We believe in policies and government direction is in place,” he said, adding that the auto sector is still the company’s bread and butter business.

Rafael Advanced Defense Systems has a rich history of collaboration with India’s defense industries, resulting in multiple JVs, subsidiaries, as well as fruitful information sharing. The company has invested over $250 million in the country through its Make-in-India initiative.

KSSL has emerged from being a traditional supplier of components and subsystems to Indian defence forces to becoming a complete system solutions provider, thus enabling a dedicated and focused approach towards realising the aim of becoming a leading defence player in the world.

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