The Reliance Group has won one of the biggest contracts in India’s defence industry. In a deal set to earn the group €1.9bn, the company announced a joint venture with Dassault Aviation to help build and maintain the fleet of 36 Rafale fighter jets for the Indian Air Force.
Dassault Aviation agreed to supply the new jets in a government to government deal worth €8bn. as part of the agreement, just under half of the construction and supply of the contract will be handled by Dassault Reliance Aerospace, the new company of the joint venture. Reliance is set to own 51% of Dassault Reliance Aerospace and will help support some 1,500 jobs in India. The new company will have a factory based in Nagpur, with jet production set to start by the end of the year.
Chairman and chief executive of Dassault, Eric Trappier said: “The formation of this joint venture illustrates our strong commitment to establishing ourselves in India and to develop a strategic industrial partnership under the ‘Make in India’ policy promoted by the Indian government.”
The deal is a success for Anil Ambani who seeks to reposition Reliance as India’s foremost defence company. The group started its defence sector expansion after the surprise acquisition of the controlling stake of the Pipavav shipyard in Gujarat last year, worth $300m.
