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France's Dassault to bring in largest defence FDI via Rafale JV with Reliance Defence

Discussion in 'Indian Defence Industry' started by Blackjay, Jun 9, 2017.

  1. Blackjay

    Blackjay Developers Guild Developers -IT and R&D

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    France's Dassault to bring in largest defence FDI via Rafale JV with Reliance Defence
    By Manu Pubby, ET Bureau | Updated: Jun 09, 2017, 12.49 AM IST

    The investment is part of Dassault’s obligations on Make in India commitments under the Rafale fighter jet deal. These commitments require the French company to manufacture a significant part of the aircraft in India.

    The investment, intended for manufacturing of aircraft components for global markets, will come into the Dassault-Reliance Aerospace Limited (DRAL) joint venture set up to meet offset obligations for the Rs 58,000-crore deal. The first tranche of FDI, around Rs 200 crore, is likely to come in by July.

    [​IMG]


    “Dassault will emerge as a single largest FDI investor in the defence sector. It will far exceed all FDI till date in the defence sector in India. The cumulative FDI in the defence sector in India till date is of the order of $6 million,” Rajesh K Dhingra, president,Reliance Defence & Aerospace, told ET.

    The JV will be used for creating infrastructure at the Mihan (Nagpur) facility, with a ground breaking ceremony planned for the end of July. Teams from the French company have visited the site at least four times in the past three months to finalise project plans. “Groundbreaking is planned in July and we expect the first article to roll out in the first quarter of 2018. Currently, first batch of our team is undergoing training at Dassault facilities in France,” Dhingra added. Government clearances would not be required for the inflow as it will be under the automatic route for FDI given that Reliance Defence holds 51% of the JV.

    Reliance Defence is bullish on the aviation and naval sectors and is targeting potential contracts worth over `2 lakh crore that are expected to come up for bidding in the next 24 months. This includes new submarines and amphibious ships for the navy, over 260 single and twin-engine fighters and a variety of helicopters needed by the three armed forces.

    The plan is to set up a 100-acre facility that will integrate a supply chain for the Rafale fighter jet in India. DRAL has announced that the first phase of the project will generate more than 700 highly-skilled direct jobs and 2,800 indirect jobs.

    Link-
    http://m.economictimes.com/news/def...ith-reliance-defence/articleshow/59060183.cms
     
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  2. Picdelamirand-oil

    Picdelamirand-oil Lt. Colonel MILITARY STRATEGIST

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    There has been a lot of buzz about the Dassault Reliance JV to execute the offsets for the Rafale deal. What has been the progress on ground in terms of building capacity, when do we expect components to start being manufactured in India?

    Huge progress has been made on the Dassault Reliance Aerospace Limited (DRAL). Detailed project reports have been submitted for necessary approval. The Joint Venture Company has been incorporated with Reliance having 51% stake and 49% with Dassault.

    Master design for the entire Aerospace Park at MIHAN, Nagpur are being finalised as also detailed drawings for the facilities. Ground breaking is planned in July and we expect the first article to roll out in Q1, 2018. Currently, first batch of our team is undergoing training at Dassault facilities in France.

    Eco system we are creating at 'Dhirubhai Ambani Aerospace Park' will be comparable with the best in the world.

    With the IAF requirement of 100 plus single engine fighter, at least 90 twin engine fighters and 57 carrier borne fighters for the Navy, the opportunity size is more than Rs. 2,00,000 Cr. Then we have requirement for more than 700 helicopters in different categories, with Program size in excess of Rs. 50,000 Cr.

    Overall there are large opportunities to be addressed in near term, which will result in paradigm shift in production capabilities in the Private Sector.

    Reliance is in talks with French partners (Dassault) to bring in the highest ever FDI in defence to India, can you share when this is likely and what will this be used for?
    Dassault will emerge as a single largest FDI investor in the Defence Sector. It will far exceed all FDI till date in the Defence Sector in India. The cumulative FDI in the Defence sector in India till date is of the order of USD 6 Mn.

    Read more at:
    http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst
     
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  3. surya kiran

    surya kiran 2nd Lieutant FULL MEMBER

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    If I may add to this, there is a possibility of UAE investing in the company. There were talks between Anil Ambani and a UAE company building carbon composites for investments.
     
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  4. Zer0reZ

    Zer0reZ 2nd Lieutant FULL MEMBER

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    Dassault Begins Process to Offset Largest Ever FDI in Indian Defense

    Dassault Aviation and its Indian partner Reliance Defence has launched an industrial partnerships initiative with 60 Indian and 25 French defense companies to kick-start offset partnerships for the US $8.85 billion Rafale combat aircraft deal.


    NEW DELHI (Sputnik) — Dassault will have to invest half the amount of the Rafale deal i.e $4.42 billion in India as per the rules of offset obligations of country's defense procurement policy. Out of 50%, France will invest 30% in military aeronautics-related research programs and 20 % fund will be invested in Indian defense firms which will make components of Rafale. Under the contract, $31.25 million will be in direct investment term which is expected to arrive from France's Dassault via its Dassault Reliance Aviation Ltd (the joint venture between both the companies) by the end of this year.

    "As part of this cooperation between the Indian and French companies, Indian partners will benefit in a unique way from the technological know-how transfers opportunities while thousands of Indian engineers and technicians will benefit from a massive skills transfer opportunity," Dassault Aviation claimed.

    The Dassault Reliance Aerospace Limited will be part of the planned Aerospace Park in Nagpur and plans to develop an indigenous value-added supply chain with the small and medium-scale segment of the defense sector. However, small and medium-scale industries are yet to be in the clear about their role in the business as Indian Air Force will receive all the 36 Rafale fighters in flyway condition. The deliveries of the 36 aircraft will commence in September 2019 and will be completed in April 2022.
     
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