 "Israel's Rafael and Astra Microwave forms JV for defence systems")
The Hyderabad-based Astra Microwave Products has teamed up with Israel’s Rafael Advanced Defence Systems Ltd to form a joint venture company (JVC) for manufacturing tactical radio communication systems, electronic warfare systems and signal intelligence systems in India. The JV, which will operate from Hyderabad, is expected to be operational in the first half of 2016.
“Astra Microwave Products has signed a term sheet for formation of JVC with Rafael Advanced Defence Systems Ltd, Israeli, for joint production and supply of tactical radio communication systems, electronic warfare systems and signal intelligence systems. The JVC will operate from Hyderabad and is expected to start business development activities in the first half of 2016,” said Astra Microwave in a BSE filing on August 24, 2015.
To start with Astra and Rafael will own 51:49 in the JVC, which will witness investment of $ 20 million (about Rs 133 crore) in first two years, and will become 50:50 subject to regulatory approvals.
Agreement with Astra Microwave can be seen as a follow up activity for Rafael Advanced Defence Systems, which had entered into an agreement with Kalyani group in February this year to form JV for developing high-end technologies and weapon systems. The JV, which will include a wide range of technologies and systems (like missile technology, remote weapon systems and advanced armour solutions), was considered to be the first major investment by overseas company since the Indian government increased the ceiling on direct foreign investment in defense sector in July last year.
“Astra Microwave Products has signed a term sheet for formation of JVC with Rafael Advanced Defence Systems Ltd, Israeli, for joint production and supply of tactical radio communication systems, electronic warfare systems and signal intelligence systems. The JVC will operate from Hyderabad and is expected to start business development activities in the first half of 2016,” said Astra Microwave in a BSE filing on August 24, 2015.
To start with Astra and Rafael will own 51:49 in the JVC, which will witness investment of $ 20 million (about Rs 133 crore) in first two years, and will become 50:50 subject to regulatory approvals.
Agreement with Astra Microwave can be seen as a follow up activity for Rafael Advanced Defence Systems, which had entered into an agreement with Kalyani group in February this year to form JV for developing high-end technologies and weapon systems. The JV, which will include a wide range of technologies and systems (like missile technology, remote weapon systems and advanced armour solutions), was considered to be the first major investment by overseas company since the Indian government increased the ceiling on direct foreign investment in defense sector in July last year.
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