Kalyani Group Ready To Roll Out Missiles Under ‘Make In India’ Plan

Kalyani Group's joint venture with Israel's Rafael Advanced Defense Systems Ltd. is one of the first to be off the block and ready to manufacture anti-tank guided missiles under Prime Minister Narendra Modi's ‘Make in India' initiative.

“We will be able to supply missiles to the Indian Army within weeks of getting the orders from the government,” Baba Kalyani, chairman of the $2.5-billion engineering-to-forging Kalyani Group, told reporters at the launch of the joint venture's new facility in Hyderabad. All field trials for the missile have been completed and it will have close to 90 percent localised content, he said.

The facility can manufacture and integrate Spike anti-tank guided missile systems and Spice glider bombs in India. The order, which awaits final approvals, includes supplying thousands of missiles valued at around $1 billion over next couple of years, said Kalyani.

India, the world's biggest importer of arms and defence equipment, is looking to boost local manufacturing by pushing domestic private companies to tie up with overseas peers for technology. The process to procure the anti-tank guided missiles began in 2010. Rafael was shortlisted in 2014. The final push came during Prime Minister Narendra Modi's visit to Israel in July.

The Kalyani Strategic Systems Ltd. and Rafael will supply the Indian Army 321 Spike ATGM launchers, 8,356 missiles, 15 training simulators and associated accessories.

“Both partners have invested around Rs 60-70 crore to build the facility. We would be investing another Rs 60-70 crore as we scale operations,” said Kalyani.

The deal involves transfer of technology to state-owned Bharat Dynamics Ltd. and option to produce additional missile launchers and missiles. The public sector company will integrate ammunition with the missile.

“We have already invested close to $70 million as preparation for this order,” said Yoav Har-Even, president and chief executive officer of Rafael Advanced Defense Systems. The company has been developing and training small and medium enterprises around Hyderabad to supply to the Kalyani-Rafael facility.

This is Kalyani Group's second partnership with an Israeli company. It struck the first one with BF Elbit Advanced Systems Pvt. for artillery guns.

The army is looking to equip all its infantry and mechanised infantry battalions and replace the current second generation French-made Milan anti-tank guided missiles.

Export Hub

Rafael Advanced Defense is looking at making this an export hub for the anti-tank guided missiles to south east Asian countries, depending on the government nod's, said Kalyani.

(BloombergQuint was invited to the launch of missile manufacturing facility at Hyderabad by the Kalyani Group)