Anil Ambani group firm Reliance Defence Limited (RDL) has entered into a strategic partnership with a leading South Korean defence major to jointly manufacture military hardware for India's armed forces.
As part of the agreement between Reliance Infra promoted RDL and LIG Nex1, the two companies will explore opportunities for developing a range of defence products such as air defence and surveillance radar, sensors and missiles.
The cumulative value of projects being targeted by the two companies will be worth multi billion dollars, an RDL official said without elaborating further.
Earlier this year, Anil Ambani had said that the defence sector will be the largest business area for his group in the next few years, considering opportunities worth Rs 1 lakh crore per annum in acquisitions for the armed forces.
LIG Nex1 is a leader in manufacture of smart heavy weapons in categories of anti-ship missiles, anti-tank-guided missiles (ATGM), and guided rockets.
"Currently, there are multiple programmes for the Indian Armed Forces that the two companies plan to address together.
"This will potentially include improvements to the existing weapon systems which are part of LIG Nex1 portfolio to meet the specific requirements of the Indian Armed Forces," said the RDL official.
The two companies have initially identified air defence & surveillance radar for production in India.
They will also work on performance enhancement for various systems and platforms to meet the specific requirements of the Indian Armed Forces.
India and South Korea had agreed to deepen ties in areas of defence and security during Prime Minister Narendra Modi's visit to Seoul in May 2015.
"Skills developed and the experience gained through this collaboration will further add to Reliance Group's capabilities and establish lead position in the Indian Market," the RDL official said.
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