With the introduction of “Make in India”, several new private players have entered into the defense sector. Some old players like TATA, have made a strong hold on the defense manufacturing and their close band with defense has made them a major option for defense ministry. But Reliance is showing an inclination towards defense deals and has made good place in a short period. Reliance defense limited has 11 subsidiaries in this sector and is going forth to make itself a leader of defense manufacturers.
Reliance Defense Ltd, led by Anil Ambani, has signed a strategic pact with Emirates Defense Industries Companies (EDIC) of UAE to work with them in defense sector. The major areas of collaboration are exploring opportunities in manufacturing and enhancing the capabilities in defense vehicle aviation, defense electronics and naval ships. It is the second deal of Reliance of with UAE firm in this year.
In the beginning of this month, Reliance has signed a MoU with Abu Dhabi ship building (ADSB) aiming to set up strategic partnership to manufacture naval ships, including frigates destroyers specialized vessels, etc keeping eye on the demand of Gulf Cooperation Council for over next 10 years. Reliance is expected to use its newly acquired Pipavav ship building facilities for this collaboration. The experience gained through this will result in enhancement of Indian Navy’s capabilities and strength in future. It will help in improving navy’s future programs which include integrated bridge solution, combat management solution, staff training and development, integrated platform management systems. ADSB is a leading firm that provides manufacturing repairing and refit services to vessels in Gulf Cooperation Council. The firm was bricks initially to provide repair and refit services to UAE’s naval vessels. But now it is emerging as a major construction firm.
In another hit to the defense deals, Russia last month, tied up with Reliance Defense Ltd for manufacturing Kamov 226T helicopters. In a letter sent to the Indian government, Russia disclosed the understanding with subsidiary alliance with Reliance infrastructure indicating that Reliance could be led integrator for manufacturing 200 twin engine helicopters for Indian Army. As per the contract, the manufacturing technology of helicopters is to be handed to any of the Indian company. Sources revealed that 50% of the machine will be manufactured from its parts. Reliance group has applied for the manufacture of the machine. Gautam Adani’ defense venture is also reported to have applied for the similar license. If Reliance Defense Ltd gets the deal, then it will become the first firm to be a prime integrator of any military chopper in India.
Reliance define Ltd is aiming to manufacture as well as maintaining the machines. A study revealed that India spends Rs. 8,000 CR in just maintenance of its aircrafts. Proper maintenance is also essential for machines as it will extend their life. The signs and indications of Reliance’s more involvement in define sector is clearly visible. Reliance seems to be aiming at becoming the ruler of defense manufacturing as it does in the private field.
