Kalyani Rafael plans 2nd plant in Telangana

Hyderabad: Kalyani Rafael Advanced Systems (KRAS), a joint venture between India's Kalyani Group, and Israel-based Rafael Advanced Systems, is looking at establishing its second defence manufacturing unit in Telangana.

"We are talking to the Government of Telangana for setting up the second unit of KRAS. It is too early to talk about investment, but the plant will require 100 acres of land," Baba Kalyani, Chairman, Kalyani Group, told the media here.

"The reason why we want to set up the second unit is that we want to create more and more local defence manufacturing capabilities, and go for indigenization and integration," he explained.

Set up in 2017, the first unit of KRAS located near Hyderabad is an advanced production facility which offers engineering services and extended life-cycle support for systems supplied to the Indian defence forces.

KRAS is expected to ramp up its employee strength to 300 technical experts by the year 2023.

The company announced on Thursday that it received a $100-million contract from Rafael Advance Systems to make 1,000 units of Barak-8 MRSAM missiles and kits for Indian Army and Airforce.

Speaking after the formal announcement, Baba Kalyani said the missiles and kits were intended to be supplied to defence public sector BDL Limited for further integration.

"Kalyani group is proud of this achievement and its association with Rafael. We are confident of executing many more such orders," he added.

In future when the joint venture gets more 'matured', KRAS would also start directly supplying products and extend our services to the Defence Ministry, he added.

Rafael has so far invested $250 million during over last two decades in India through various partnerships and joint ventures through its Make-in-India initiative.