Moneycontrol Bureau
Anil Dhirubhai Ambani Group company Reliance Infrastructure shares rallied 4.5 percent intraday Thursday as its subsidiary signed joint venture agreements for defence sector with Dassault Aviation and Strata Manufacturing.
"Reliance Infrastructure promoted Reliance Aerostructure's joint venture with Dassault Aviation - Dassault Reliance Aerospace (DRAL) - has been incorporated," the company said in its filing.
Eric Trappier, Chairman of Dassault Aviation France, will be the chairman, and Anil D Ambani, chairman of Reliance Group, will be the co-Chairman of DRAL.
Reliance Aerostructure will have 51 percent shareholding in the JV, while Dassault Aviation will hold 49 percent.
On 23 September 2016, India and France signed a purchase agreement for supply of 36 Rafale fighter jets at a value of 7.87 billion euro, or about Rs 60,000 crore. The contract includes a 50 percent offset obligation to the tune of approximately Rs 30,000 crore, which is the largest ever offset contract in the history of India.
Dassault Reliance Aerospace will be a key player in the execution of offset obligations, it said.
Reliance Infra further said DRAL has finalised the infrastructure requirements and the construction work for the greenfield facility will start in May 2017, and production by end-2017.
In addition, subsidiary Reliance Defence and composite aero-structures manufacturing company Strata Manufacturing PJSC have signed a memorandum of understanding to collaborate on advanced aerospace manufacturing capabilities between India and the UAE. Strata Manufacturing is wholly owned by Mubadala Development Company, the United Arab Emirates.
At 15:27 hours IST, the stock was quoting at Rs 551.45, up Rs 9.90, or 1.83 percent on the BSE.
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