After the series of partnerships recently, the Anil Amabni-led Reliance Group has strengthened its defense presence with a strategic collaboration with a Singapore-based firm for manufacturing aerostat and airships in India. In a deal signed between Reliance Unmanned Systems and Augur Overseas Operation—a wholly owned subsidiary of Augur Aeronautical Centre—the partnership will collaborate on civil and military advancement.
As per the memorandum of understanding (MoU) signed by the two groups, there will be a joint venture (JV) for establishing new development paradigms for domestic and global markets where Reliance will be the leading partner with 51 percent stakeholder value. The JV will also develop new manufacturing cycles that will include life support and maintenance for aerostats and airships across all sizes and dimensions.
The MoU is a push to Reliance Group’s vision for the defense sector and reaffirms an earlier agreement between Augur Aeronautical Centre and Pipavav Defense, a company recently acquired by Reliance Group. The collaboration is already into production and has rolled out a medium sized aerostat envelope prototype tested for simulated mooring, verification of equipment and functioning of aerostat envelope together with pressurization system at Pipavav’s autonomous facilities.
The aerostat market in India is slated for a big surge and is expected to hit Rs 65,000 crore by 2020, up from Rs 25,000 crore in 2014. The surge in demand is seen as combination of factors dominated by India’s growing need to have its 7,000 km coastline and 14,000 km long border secured which needs advanced surveillance and reconnaissance. It is estimated that the nation’s armed and paramilitary forces alone need about 40 aerostat systems valued at Rs 12,000 crore. The ability of aerostat radars to pick up and identify low-flying aircrafts is of critical importance. Deployment of aerostats as an emergency aid for carrying food, water, provisions, blankets and relief material is also adding up to the demand.
Reliance Group
Under Chairman Anil Ambani, Reliance Group is valued as one of the five biggest business groups in India with interests in power, infrastructure, financial services, and media and entertainment sectors. With over 200 million users, it reaches out every 1 in 6 Indians, and has one of the largest shareholder strength worldwide of over 8 million shareholders.
