Defence will emerge as the largest business for the Reliance Group, said Anil Ambani, chairman of Reliance Group in a presentation to analysts on Monday as Reliance Defence gears to tap defence opportunities worth Rs. 1 lakh crore annually in the Indian defence market.
“There is a huge opportunity for private sector in the defence business as currently India imports 70% of its defence requirement in value terms and accounts for 14% of the global defence imports in 2016,” said Anil Ambani addressing a gathering of 80 analysts in Mumbai on Monday. “Overall, India Offset opportunities are in excess of Rs. 77,000 crore with peak obligation of Rs. 10,000 crore in 2018. This is a big playing field for the Indian private sector,” he said.
Reliance Defence has submitted bids for Rs. 30,000 crore of defence orders comprising landing platform dock and anti submarine warfare and shallow water craft.
Reliance Defence is planning to bid for the construction of two indigenous aircraft carriers worth Rs. 90,000 crore and 12 submarines worth Rs. 1.2 lakh crore. The company is also planning to submit bids worth another Rs. 30,000 for building next-generation missile vessels and a next-generation corvette this year. “Reliance Group’s entry into the defence sector is driven by the new policy of Make in India and Skill India which makes available the large opportunity for the group. Contrary to general perception, defence is [a] low-capital business with high turnover,” said Mr. Ambani adding that his vision was to be the leading manufacturer and supplier of ‘state-of -the-art’ advanced weapon platforms, equipment, systems and hardware “to meet the domestic requirements of the Indian Armed Forces and to mark our presence across the world.”
In aerospace, Reliance Defence has set up a 51: 49 JV, Dassault Reliance Aerospace Ltd., which plans to be a key player in the offset opportunity for the Rafael 36 contract. The annual budget for Indian defence is about Rs. 2.6 lakh crore.
— source thehindu.com by Piyush Pandey
when defence becomes private business, conflicts and war will escalate. because these private companies get profits only if there is need of weapons. America proved this.
Our soldiers and civilians will going to die in unnecessory wars. We must end privatization of defense sector. Soldier’s families and citizen must unite on this issue.