The establishment of “BEL IAI AeroSystems Private Limited,” a joint venture between Israel Aerospace Industries Limited and Bharat Electronics Limited, has been approved by the Ministry of Corporate Affairs (MCA).
The official notification states that the joint venture was approved recently. The Medium-Range Surface to Air Missile (MRSAM) System deployed in India will receive product support, including maintenance and repair, from the new company, BEL IAI AeroSystems. A forty percent share in this joint venture is owned by Bharat Electronics Limited.
The combined venture with Israel Aerospace Industries is expected to greatly improve the MRSAM system’s operational preparedness in India.
It is also anticipated that the two corporations’ relationship will spur technological innovation and support the expansion of the defense industry.
The Committee of Ministries for Social & Economic Affairs in Israel and the Ministry of Defence in India must still approve the joint venture.
Furthermore, on Friday, Bharat Electronics is scheduled to join the Nifty 50 benchmark, taking the place of LTIMindtree and Divi’s Laboratories in the index.
Notably, neither the promoters nor the promoter group have any stake in the newly established company, hence the joint venture’s incorporation does not qualify as a related party transaction. Once it is up and running, though, the joint venture will be regarded as Bharat Electronics’ linked party.
BEL would require further regulatory clearances from the Committee of Ministries for Social & Economic Affairs in Israel and the Ministry of Defence in India for the joint venture to be successfully incorporated and operated.
Bharat Electronics’s net profit for the June quarter was INR776 crore, up 46% year over year and significantly more than the INR706 crore predicted by CNBC-TV18.
