In a landmark development for the Indian Private Defence sector, Reliance Group led by Anil D Ambani has entered into a Strategic Partnership with Dassault Aviation of France (Rafale) to execute the largest Defence Offset contract worth up to Rs. 30,000 Cr.
Dassault Aviation recently won the contract for 36 Rafale fighter aircrafts from the Govt of India for Rs. 60,000 Cr with 50 percent offset clause This is the largest offset contract to be executed by any defence company in India till date.
The deal was announced by Dassault Aviation Chairman & CEO Eric Trappier and Reliance Group Chairman Anil Dhirubhai Ambani on October 3rd. Following the announcement, the two companies will create a Joint Venture in India to be called “Dassault Reliance Aerospace”
The JV is in line with Prime Minister Narendra Modi’s “Make in India” initiative and “Skill India” policies to develop major Indian programs with high levels of technology transfer to benefit the entire aerospace sector.
The “Dassault Reliance Aerospace” Joint Venture will be a key player in the execution of offset obligations, as a part of the 36 Rafale fighter Jets purchase agreement at a value of €7.87 billion, or about Rs.59,000 crore signed between France and India on September 23, 2016.
The agreement includes a 50% offset obligation which is the largest ever offset contract in the history of India.
The proposed strategic partnership between Dassault and Reliance will also focus on promoting Research and development projects under the IDDM program (Indigenously Designed, Developed and Manufactured), a new initiative of India’s Defence Minister Manohar Parrikar.
“The formation of this Joint venture with Reliance Aerospace led by Anil Ambani’s Reliance Group illustrates our strong commitment to establish ourselves in India and to develop strategic industrial partnerships under the “Make in India” policy promoted by the Indian Government”, declared Eric Trappier, Dassault Aviation Chairman & CEO.
“We are delighted to partner a world leader in aviation like Dassault Aviation, and a visionary leader like Eric Trappier. This is a transformational moment for the Indian Aerospace sector and for Reliance Infrastructure’s subsidiary Reliance Aerospace”, said Anil Ambani, Chairman of The Reliance Group.
About Dassault Aviation: With more than 8,000 military and civil aircraft delivered to more than 90 countries over the past 60 years, and having logged nearly 28 million flight hours to date, Dassault Aviation can offer recognized know-how and experience in the design, development, sale and support of all types of aircraft, from the Rafale fighter to the Falcon range of high-end business jets, as well as military unmanned air systems. In 2015, Dassault Aviation reported revenues of €4.20 billion. The company has almost 12,000 employees. In 2016, Dassault Aviation is celebrating the first centennial of its history, which started in 1916 with Marcel Dassault and the Éclair propeller.
About Reliance Group: Reliance Group, led by Chairman Anil D. Ambani, is among India’s top 5 business houses, with a leadership position in telecommunications, power, infrastructure, financial services, and media and entertainment. In January 2015, the Group entered the Indian Defence manufacturing sector, acquired a state-of-the-art Naval Shipyard, and is rapidly developing its Air, Land and Sea Defence manufacturing capabilities in collaboration with leading global defence firms. The Group has over 250 million customers, serving 1 in every 5 Indians, and over 8 million shareholders, amongst the largest shareholder families in the world. The net worth of the Group is Rs 100,000 Crore (US $ 16 billion), and the total asset base is Rs 267,000 Crore (US $ 43 billion). It is an equal opportunity employer with 100,000 strong, highly competent workforce comprising different nationalities. Through a robust Corporate Social Responsibility programme, the Group touches lives of millions every day.