Defence sector to be largest business for RInfra: Anil Ambani
Mumbai, Feb 28 (IANS) Reliance Infrastructure (RInfra) has said that in the next few years defence will be its largest business sector, where it is targeting opportunities worth Rs 1 lakh crore per annum.
This information was revealed by RInfra on Monday when it held an “Analyst Meet” here. During the meet, over 80 analysts from India’s leading brokerage houses were briefed by Group Chairman Anil D. Ambani on the defence business plans of the group.
According to the company’s presentation, it will be focusing on the overall India offset opportunities which is in excess of Rs 77,000 crore.
Segment-wise, the company said it has taken a lead in the aerospace segment where more than Rs 500,000 crore of Indian aerospace programmes are expected to awarded in the next 15 years.
Besides, the company said it is well equipped to handle naval and commercial ship building and oil and gas opportunities through its Reliance Defence and Engineering Limited (RDEL) at Pipavav.
RDEL based at Pipavav, Gujarat has total assets of about Rs 10,000 crore and the largest ‘Dry Dock’ in India. The company also has strategic partnerships with the global majors like DCNS, SAAB, SAFRAN and Thales.
In January 2016, RInfra acquired management control of Pipavav Defence Offshore and Engineering Company (PDOECL) which has since been renamed as Reliance Defence and Engineering (RDEL). Reliance Defence received 27 industrial licences during last year for manufacture of various defence equipments for the Army, Navy and Air Force.
In terms of other crucial highlights, Reliance Shipyard (Reliance Defence and Engineering) has been selected by the US Navy for providing services to its 7th Fleet consisting of more than 100 ships.
Last month, RDEL has signed a contract to build 14 ‘Fast Patrol Vessels’ (FPVs) for the Indian Coast Guard. Reliance Defence has signed strategic partnership with Antonov, Ukraine for Transport Aircraft.
The Indian Defence budget has been pegged at Rs 262,000 crore for FY 2017-18, an increase of five per cent over the last year’s budget.
The capital acquisitions of defence hardware in next 10 years is expected to be (approx.) Rs 15 lakh crore (Rs 1 lakh crore per annum). The country will have a Rs 86,000 crore of defence expenditure in the year 2017-18.
Last year, India was the largest importer of defence products accounting for 14 per cent of the total global imports. Currently, about 70 per cent of the Indian defence procurements are imported.