Adani group on shopping spree for defence
Adani group holds 51% in the joint venture manufacturing facility of UAVs at Hyderabad, where the Israeli defence giant Elbit Systems owns minority stake of 49%.
Speaking to journalists in Hyderabad at the UAV manufacturing facility on Friday, Adani group head (defence & aerospace), Ashish Rajvanshi said the group had in the last two years completed due diligence of some 300 micro, small and medium enterprises (MSMEs) in the defence sector. He said Adani group will buy some of these companies to help build up in-house capabilities.
“We (have) identified where the most unique capabilities lie, where they have been doing something which is not commoditised but which is something more future looking. For example, the software defined radios which is being talked about by the Indian Army is something which is being done by Alpha today,” said Rajvanshi.
“So, based on due diligence, we have identified Indian jewels which have now become part of the portfolio. And where we see a gap in our capabilities, tier-I and tier-II, we will continue with the strategy (of acquisitions). So, it will be a mix of organic and inorganic (growth),” he said.
Adani now has a portfolio of companies – Alpha Design, Comprotech, Autotech, and joint ventures with Elbit, Saab, Rave Gears and Rosoboronexport. “I can very proudly say, no other company can actually show this ecosystem to now transition to the platforms,” said Rajvanshi.
Adani group holds 51% in the joint venture manufacturing facility of UAVs at Hyderabad, where the Israeli defence giant Elbit Systems owns minority stake of 49%. The 50,000 square feet facility over 20 acres campus of Adani group will be the first facility outside Israel to make the Hermes 900 medium altitude long endurance (MALE) UAV, followed by Hermes 450.
In the first phase, the Hyderabad facility will make complete carbon composite aero structures and ramp up assembly and integration of complete UAVs. The joint venture will first cater to global needs and then look at making UAVs for domestic needs whenever it receives orders from the Indian Army.
Rajvanshi said Adani group was also looking to ramp up capacities of India’s first UAVs manufacturing facility, requiring additional investments. The JV facility will produce four units of UAVs next year and grade up to make 18 by 2020.
Further, Rajvanshi said Adani’s aerospace park in Hyderabad would also house a 50,000 square feet unit to manufacture high-end helicopter gears in joint venture with the US giant Rave Gears sometime by September next year.