Reliance Defence inks Pact with Serbia’s Yugoimport to Manufacture Ammunition in India
Anil Ambani’s Reliance Defence Ammunition which is a subsidiary of Reliance Infrastructure has entered into a strategic partnership with Serbia’s state-run Yugoimport to manufacture ammunition in India. The joint venture is expected to target business opportunities worth Rs 20,000 crore from Indian armed forces in the next 10 years.
The two companies will work jointly in the field of ammunition amongst others. Both the companies would undertake joint development of next generation ammunition to cater to the needs of the future requirements of the Indian armed forces.
The proposal also involves the transfer of technology by the original equipment manufacturers (OEMs) and indigenous manufacturing in India.
Reliance Defence Ammunition will set up a greenfield facility for the production of ammunition.
India at present imports around 50% of its ammunition with an annual spending of more than Rs 10,000 crore.
Yugoimport is Serbia’s state-owned defence major and is a market leader in the field of ammunition production. Prime Minister Narendra Modi’s Make-in-India initiative requires building a domestic industrial base in India. This is aimed at cutting outright imports. Accordingly, Yugoimport has offered a fully compliant technical solution to meet the Make in India requirements of the Indian government.
Categories: Business & Economy Current Affairs 2017