Israel to help make Spike missiles in Hyderabad

A JV Kalyani Rafael will produce anti-tank guided system for Indian Army

​Hyderabad: Kalyani Rafael Advanced Systems (KRAS), a joint venture between Kalyani Strategic Systems Ltd and Israel-based Rafael Advanced Defence Systems, will manufacture Spike, the anti-tank guided missile (ATGM) in Telangana. The state-of-the-art facility at Hardware Tech-Park on Srisailam highway, is the first such private sector unit to manufacture missiles.

It’s expected to commence commercial production of developing new generation missiles within few weeks. Rafael, which has been chosen as the partner for supply of the missiles to the Indian Army, is waiting for final approval to start production. Kalyani Rafael is planning for second phase of the project at another industrial location in Hyderabad.

Telangana Industry and IT minister KT Rama Rao and Daniel Cameron, Israel’s Ambassador to India, were present at the inauguration of the Kalyani Rafael’s new facility here on Thursday. “We’re were waiting for orders from the Indian Army.

So far, we have invested Rs 60 crore to Rs 70 crore and would be adding a similar additional amount, once orders start coming in. The order from Indian Army is worth about $1 billion and will be executed over a couple of years,” Baba N Kalyani, chairman, Kalyani Group, told the media here on Thursday.
Rafael President and CEO Yoav Har-Even said “the total investment in the joint venture would be $70 million, covering various products.

We also plan to produce air-to-surface missiles. We’re here to manufacture weapons systems at the request of the Indian armed forces.”

Kalyani holds 51 per cent in the JV, while Rafael holds the remaining stake.

Rafael will transfer the technology for missile manufacturing but its CEO said it would be Indian Spike missile from Indian missile house with over 90 per cent localisation.

The company has completed the 24,000-sft facility in a record time of 10 months. The new facility will provide direct employment to 500 people and indirect employment through vendors and suppliers to 2,000 to 3,000 people. Kalyani further said that they would also explore export potential once they stabilise the commercial production activity.

“We’ll look for exporting the missiles to the countries in Southeast Asia. However, this will be subject to approval from the government of India,” he said.

Kalyani Rafael has established a network of sub-contractors and supply system in and around Hyderabad. “It’s not a screwdriver assembly, but a real manufacturing facility.

We are hoping that we will have more business because we are looking at other products like glider bombs attached to aircrafts and are used by the Air Force,” Kalyani said.

He said the 250-pound bomb could prove far more cost-effective and cause more damage to enemy installation than a full-scale air-to-ground missile.

Kalyani described the JV as the country’s first private sector missile sub-systems manufacturing facility. “We chose Hyderabad as it is the epicentre of eco-systems which deals with missiles and it is easy to get skilled people and suppliers here,” said Kalyani.

$2.5-bn Kalyani Group’s JV with Rafael covers air defence and missiles, and is looking at four verticals in defence. Kalyani said by manufacturing in India, they were looking beyond offset obligation to export the products to other countries.