India’s Private Missile Facility has 1000 MSMEs in its Supply Chain: DISA

The country’s first of its kind, private sector missile systems manufacturing was inaugurated recently near the Hyderabad region under a collaboration of Kalyani Group and Rafael Advanced Defence Systems from Israel. The facility has over 1000 Micro, Small and medium Enterprises (MSMEs) as a part of the project.

The involvement of the MSMEs in the private defence project is an important step to bring domestic MSMEs into the supply chain, DISA said.

P.C Tripathi, President Defence and Strategic Industries Association of India (DISA) said that involving the MSMEs will help indigenize the defence manufacturing supply chain.

“Since the procurement is largely to be done from the local vendors, the MSMEs in defence sector are likely to experience innovation under different vendor development;” said Tripathi.

Earlier the missile producing facility was inaugurated by Kalyani Group in association with Rafael Advanced Defence Systems from Israel.

In the first phase of the production, the manufacturing facility will manufacture anti-tank guided missile spike and the facility will be supplying the product to Indian army.  Also the project plans to export the systems to other South East Asian countries.

With the private sector entering into the defence industry, experts view that the sector will be able to innovate and manufacture efficiently. Also the project intends to procure 90 per cent of the material from the local vendors.

Talking to press at the inauguration event, Telangana industries and IT Minister K.T Rama Rao said that both Hyderabad and Telangana have the potential to become the defence investment hub in the coming times.