After successfully acquiring Pipavav shipyard, Anil Ambani is growing deeper in defence industry by creating a cluster of companies and applying for licenses to design, develop and manufacture military equipment ranging from UAVs and spacecraft to submarine systems. Ambani has already applied for 13 such licenses. Reliance Defence Limited (RDL) has raised 11 new companies which are to be used as joint ventures between Indian and foreign manufacturers, for license production of equipment, thereby strengthening “make in India” initiative. Each of these companies target a potential market of at least Rs. 10,000 crore. RDL also plans to export defence products from India and has also made several defence contracts including a $2 billion order for landing platform docks (LPDs) and two helicopter manufacturing projects worth over $3 billion, which are in the initial stages.
"The group will aim at a leadership position in the sector and is committed to deliver on time and give the best value proposition,” said Rajesh Dhingra, President, Reliance Defence & Aerospace Pvt Ltd.
RDL wants to go beyond ship building and helicopter manufacturing, and is keen on entering the core markets of land systems, unmanned aviation, defence electronics, submarine construction, production of missiles, development of engines and MRO (Maintenance, Repair and Overhaul) business. It has also sought permission to manufacture spacecraft and satellites. Anil Ambani has been personally driving the defence business and has met the leadership of almost all major defence manufacturers around the world. The company has been getting positive responses from all these manufacturers. The business plan of RDL is believed to be based on the estimation that the requirement of military hardware in the next decade would exceed $250 billion. The company has also been on a hiring spree, picking up executives for its head office in Delhi as well as preparing the formal takeover of the Pipavav Shipyard.
By setting up a number of companies and applying for licenses, RDL is undoubtedly making its entry in the defence sector big.
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Rahul Bakshi
