Alpha Design Technologies Pvt. Ltd., a direct supplier of defence equipment for the Indian Armed Forces, said that its Israeli partner Elbit Security Systems had increased its stake in their joint venture from 26% to 49%.
The two will set up new facilities in Bengaluru to manufacture an expanded range of niche technology products for the military, according to the Bengaluru-based firm, which was part of the Prime Minister’s business delegation to Israel.
The partners signed an agreement to this effect in Tel Aviv on Wednesday. However, the financial details were not disclosed.
Alpha-Elsec Defence & Aerospace Systems Pvt. Ltd. was formed in 2005 as a 74:26 venture. The Modi government raised the defence sectoral cap on foreign direct investment later.
“The inking of the agreement enhances the scope of operation of the joint venture company into niche technological areas such as new generation thermal imaging equipment, fire control systems, mini and medium unmanned aerial systems, in addition to night vision devices, laser range finders, laser pointers, reflex sights, among others,” a release from Alpha said, citing its CMD Col. (retd) H.S. Shankar. The venture plans to export at least 50% of its production.
Col. Shankar described the agreement with a global leader like Elbit was as a major milestone for a private sector company in the MSME (micro, small and medium enterprises) segment. Alpha, which had a 2015-16 turnover of over more than ₹400 crore, said it had supplied defence electronics equipment worth about ₹650 crore in the last five years..
Elad Aharonson, executive vice-president and general manager of Elbit – ISTAR Division, was quoted as saying, “Together with Alpha Design, we have completed two major contracts for the upgradation of armoured vehicles. [They are] 969 sets of thermal imaging sighting kits for the BMP-2 and 1,000 sets of thermal imaging-based fire control systems for the T-72, including providing installation and life cycle support for these systems to the Indian Defence Forces.” BMP-2 and T-72 are Russian origin infantry combat vehicle and the main battle tank respectively
The expanded joint venture, he said, would combine the development capabilities of Elbit in opto-electronics and mini, medium-sized UAVs with Alpha Design’s production and technological capabilities.
Gen Avi Mizrachi, Elbit’s Executive Vice-President (Business Development), described India as one of their key markets.
Source: The Hindu