Kalyani Rafael Advanced Systems (KRAS) received a $100 million contract from top Israeli arms firm Rafael to supply 1,000 Barak-8 MRSAM missile kits for the Indian Army and Air Force.
Rafael EVP and GM of its Air and Missile Defense Systems Division, retired Brigadier General Pini Yungman presented the contract to KRAS at a ceremony attended by Kalyani Group Chairman Baba Kalyani.
The supply of missiles will begin in the fourth quarter of the current financial year and will continue over next four years.
This is the first major order received since KRAS, a 49:51 ratio joint venture between Rafael Advanced Systems and Kalyani Strategic Systems Ltd, was formed in 2017 as India’s first missile sub-system manufacturing entity. It claims to be the first large foreign direct investment (FDI) in a defence manufacturing plant in India.
Baba Kalyani said Rafael will share with KRAS all technologies required to make the products. It will also be engaged in manufacturing and supply of some of the advanced systems of Rafael portfolio to friendly nations.
He said they were looking at building Rafael’s Derby Mk III beyond-visual-range air-to-air missile for India’s Light Combat Aircraft (LCA).
Baba Kalyani said KRAS was contributing significantly to the Make in India initiative and was a testimony to the increasing cooperation between India and Israel.
KRAS is looking at setting up a second manufacturing facility near Hyderabad for integration of various defence products. It has requested the Telangana government for allocating 100 acres for this purpose.
Officials here said since the facility will deal with warheads and explosives, they are looking for a location about 50-60 km from the city. The existing facility has already started exports. Officials said last year it exported products worth $15 million and is looking at $20 million exports during the current year.
KRAS had set up the facility to make Anti-Tank Guided Missiles (ATGM) SPIKE for the Indian Army. However, last year India cancelled $500 million deal with Rafale apparently to give a chance to Defence Research and Development Organisation (DRDO) to deliver indigenous anti-tank missiles.
Rudra B Jadeja, CEO, KRAS remained hopeful of his company eventually getting the SPIKE contract. He said they had delivered first order of 210 SPIKE missiles. “These missiles were inducted in the defence forces. They know the real value of the systems. They will have lot of things to talk about,” he said.