HYDERABAD: Kalyani Rafael Advanced Systems Ltd (KRAS) on Thursday said it bagged a USD 100-million contract from Rafael Advanced Defense Systems to supply 1,000 Barak-8 MRSAM missile kits for the Indian Army and the Indian Air Force. Considering the potential in private defence manufacturing, KRAS, a joint venture between Israel’s Rafael and Kalyani Strategic Systems Ltd, is planning to set up its second production facility near Hyderabad.
The existing facility manufactures sub-systems for defence forces —and supplies it to Bharat Dynamics Ltd for further integration — besides extending engineering services and life cycle support. It also has been exporting defence systems worth USD 15 million and hopes to double it to USD 30 million by next year. Currently, it employs about 80 and plans to ramp up to 300 by 2023.
“The facility near Hyderabad was set up in August 2017 and has now bagged a USD 100 million order. We plan to expand our facilities and capabilities as a systems integrator while broadening the product range,” said Baba Kalyani, chairman, Kalyani Group. He said KRAS has sought about 100 acres of land from the Telangana government for a proposed second facility, where it hopes to produce weapon sub-systems of Derby Mark 3 Beyond Visual Range Air-to-Air Missile for the Light Combat Aircraft and Low-Level Quick Reaction Missile systems for the Indian Air Force, besides others.
According to officials, Rafael has so far invested USD 250 million over the last two decades in India through various partnerships and joint ventures, including the Make-in-India initiative. Moreover, KRAS is also one of the largest FDI beneficiaries within defence manufacturing, though the company declined to disclose the quantum of foreign funds received.
“Why we are looking at the second facility here is to create more local manufacturing, indigenisation and integration of defence products. It cannot happen in the place we have now. We need to have a second unit, which is why we’re holding talks with the Telangana government to get about 100 acres of land,” Kalyani said.