Anil Ambani's Reliance Group ties up with Dassault after Rafale fighter jet deal

Reliance Group said on Monday it had tied up with Dassault Aviation SA to help the French company spend up to Rs 30,000 crore ($4.51 billion) that it must invest in India as part of a recent fighter jet deal it clinched.

India, the world's largest arms importer, requires foreign defence companies to invest a percentage of the value of deals that they have been awarded into India to help the country build its own manufacturing base and wean itself off imports.

Reliance Group chairman Anil Ambani. PTI

Reliance Group chairman Anil Ambani. PTI

Dassault agreed to invest 50 percent in so-called offsets of the $8.7 billion deal it signed with New Delhi on 23 September to supply 36 of its Rafale fighter jets. Reliance said the offset contract is India's biggest ever.

Billionaire Anil Ambani, whose Reliance has virtually no experience of defence manufacturing, hopes to turn his company into a major defence firm over the coming years.

The agreement with Dassault is a bet that Reliance can build manufacturing facilities at a site in Nagpur to feed into Dassault's supply chain, or for future Indian government orders of the Rafale jet.

A person familiar with the agreement said part of the Rs 30,000 crore in offsets would be spent directly on Reliance manufactured products, and part would be spent through other Indian manufacturers, depending on which company could best carry out the work. The person was not authorised to speak to the media about the agreement and so declined to be identified.

"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," Dassault Chief Executive Eric Trappier said in a statement.

Senior executives told Reuters in May that Reliance had bid for Rs 84,000 crore in government contracts, but was yet to win any.

Other Indian companies with an interest in defence and aerospace include Tata Group, Mahindra Group and Larsen & Toubro Ltd.


Updated Date: Oct 03, 2016 15:45 PM

Also Watch

Watch: The true stories from Dharavi that inspired Rajinikanth's Kaala
  • Thursday, March 8, 2018 Watch: Cyrus Khan talks about Parkour, jumping across walls and why he hates sitting
  • Thursday, May 31, 2018 Unwind: India's basketball sensation Amjyot Singh has his eyes set on becoming an NBA regular
  • Monday, May 28, 2018 First Day First Showsha — Review of Solo: A Star Wars Story in 10 questions
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See