Tata : New direction

Mumbai, Feb. 17: The Tata group is forming a joint venture company with Israel Aerospace Industries Ltd to develop, manufacture and support a range of defence and aerospace products.

Tata Sons chairman Ratan Tata signed a memorandum of understanding with Itzhak Nissan, president and chief executive officer of Israel Aerospace.

The joint venture company, to be set up by Tata Advanced Systems and Israel Aerospace, will develop, manufacture and support products such as missiles, radars, electronic warfare systems and homeland security systems.

Tata Advanced Systems is a wholly owned subsidiary of Tata Industries, providing integrated solutions for defence and aerospace.

The joint venture will also establish indigenous capabilities to support the Indian customers of Israel Aerospace.

After signing the MoU, Nissan said, “The Israel Aerospace-Tata joint venture reflects our commitment to deepen our relations with the Indian industry. Tata is one of the most trusted business groups in India and is well known around the world for its excellence and ingenuity. Together, we will be able to offer a wide range of defence products to boost the capabilities of local Indian defence industries.”

Ratan Tata said the joint venture would have a positive impact on the growth of the defence industry in India and “complement the efforts of our defence labs, ordnance factory board and defence public sector undertakings”.

Israel Aerospace Industries, formerly known as Israel Aircraft Industries, is the largest aerospace and defence company in Israel. The company is also Israel’s largest industrial exporter.

The joint venture came a day after the Tatas and EADS Defence and Security announced plans for a partnership to bid for the Indian Army’s $1-billion advanced tactical communications system project. EADS is a global leader in aerospace, defence and related services.