“Kalyani Strategic Systems Ltd (KSSL), the defence arm of Kalyani Group and Israel Aerospace Industries (IAI) signed a memorandum of understanding to incorporate a joint venture company in India, at the Aero-India exhibition in Bangalore,” said the auto ancillary and defence company in its filing.
BANGALORE: Bharat Forge shares hit a fresh 52-week high of Rs 1,072.80, up 5.35 percent intraday Thursday after signing agreement for joint venture company with Israel Aerospace Industries.
“Kalyani Strategic Systems (KSSL), the defence arm of Kalyani Group and Israel Aerospace Industries (IAI) signed a memorandum of understanding to incorporate a joint venture company in India, at the Aero-India exhibition in Bangalore,” the auto ancillary and defence company in its filing.
As part of the MOU, IAI and KSSL are aiming to expand their presence in Indian defence market and to build, market and manufacture specific air defence systems and ground to ground & ground to sea munitions.
“The joint venture will provide indigenously manufactured solutions in niche technology areas of defence sector, thereby furthering the ‘Make in India’ initiative of the government”,” Baba Kalyani, Chairman Kalyani Group said.
Defence business comes under company’s industrial segment. During the quarter ended December 2016, domestic industrial sector grew 35 percent to Rs 175.3 crore year-on-year driven by growth across agri equipment’s, HHP engines, power and supply of components to defence sector.
Kalyani Group is also positive about commencing operations at its Hyderabad plant which it expects to be ready by March-April this year. Kalyani said the joint-venture with Rafael is working smoothly, Kalyani said, adding that he is very positive on the outlook for FY18 in the absence of major disruptions in global economy, political and financial system. The country’s manufacturing sector is likely to do well on the back of major outlay in defence, railways, infrastructure or mining, he added.