Announcing a partnership between the Reliance Group and Maharashtra
State Government in 2015, the Reliance
Group Chairman, Mr. Anil Ambani was quoted as saying, "We are deeply committed to defense
sector. Our first acquisition, the Pipavav, Project at Mihan - which has since
gained popularity as the Mihan Project - would be the largest Greenfield
project not only in India but in South East Asia." Talking about the
project, Mr. Ambani stated that plans
were a foot to set up Dhirubhai Ambani Aerospace Park (DAAP) at Mihan - the site
allotted for the project. He attributed the selection of the site to easy availability
of resources such as infrastructure, skill, and most importantly, the size of
the land and space for testing. DAAP promised to set up manufacturing assembly
lines for production and repair of aircraft components. The 6500 crore project spanning
289 acres is indeed a massive undertaking - even for an industrial giant like
Anil Ambani led Reliance group.
The Story so far
In their 2017-18 annual report, the second generation business tycoon
reports that they have established themselves in the defense industry through
global tie-ups with equipment suppliers like the French Dassault Aviation -
with 51% holding - and marketing partners like LIG Nex1 of South Korea, Strata
of UAE, DCNS and Thales of France, covering both procurement and sales - the
two most significant areas of business. The contract size with Dassault
Aviation - for setting up Dassault Reliance Aerospace Limited (DRAL) - is
30,000 crores and projected investment in marketing opportunities over the next
5 years is to the tune of 1,00,000 crores.
Another joint venture with the Israeli company
Rafael Advanced Defence System - Reliance Defence and Engineering Limited
(RDEL) has bagged the US Navy contract for repair and maintenance of their 7th
fleet - no mean feat that! T
Three years down the line RInfra - Reliance
Infrastructure - the parent company of DRAL (Dassault Reliance Aerospace
Limited) finds itself in debt to the tune of 9000 crore. But there is no
cause to worry says the man behind the mission. The Annual Report projects
future focus on Land Systems, which though requiring further investment would
nevertheless rake in large profits in the long run.
What the Future Holds
The alliance with Dassault Aviation is in part
a contribution of Reliance Group's contribution towards Make in India and Skill
India schemes of the government of India. DRAL - as a part of Reliance group
with proven success in the technology sector - plans to facilitate technology
transfer in the aerospace sector as a result of this alliance. As a part of the
purchase agreement between the Indian and the French government, DRAL will be a
key factor in fulfilling the obligation of the Indian Government. DRAL will
form a part of the Mihan DAAP project, not only sharing space but forming a
comprehensive eco structure that facilitates manufacture thorough integration
of MSMEs in the aviation sector.
Through a strategic alliance with ANTONOV of
Ukraine, for Maintenance Repair and Overhaul (MRO), Reliance Defence Limited
plans to fulfill requirements for 50 to 80 seater passenger aircrafts as well
tangential needs like transport, patrol, and more. In yet another alliance - an
MoU with Mubadala Aerospace of Abu Dhabi, RDL has roped in expertise in carbon fiber
aero structures.
Apart from aerospace, Reliance Industries has
also forayed into the naval, defense equipment, land systems, and defense
infrastructure. In the naval arena, RDEL is the first private sector company
win a contract for design of a warship for IAF. As of 31st March, 2018 - as per
the annual report - 70% progress has been achieved on the first two offshore
patrol vehicles and 30% on the remainder. A contract for building 14 fast
patrol vehicles has also been awarded to RDEL.
In the Land Systems space too, several partnerships
and alliances have been affected with OEMs around the world for manufacture of
weapons, platforms, ammunition, and equipment
as well as armored vehicles and artillery. RDL has also ventured into
manufacture of specialized platforms like armored tracked and wheeled tracked vehicles,
Main Battle Tanks (MBT), Turrets, Optronics, C-Ram (Counter Rocket,
Artillery, and Mortar), and more.
In fact, the great visionary, Mr. Anil Ambani
- with a single step - has taken the defense sector by the storm - sailing
forth on all fronts - land, sea, and air. Mr. Anil Ambani is a chip off the old
block displaying traits of the late Mr. Dhirubhai Ambani - a true visionary and
leader.
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