A joint effort to gain big pieces of a huge market

Indian companies with deep pockets have seen the potential in the local defence market – and are looking for partners.

Israel is one of the natural “hunting grounds”.

A few days ago, Indian company Piramal acquired a 28% stake in BlueBird – the Israeli unmanned air systems (UAS) manufacturer. The Indian company will seek more investments in Israeli aerospace and defence companies with potential to do business in India.

This will not be a one-time event – it is only the beginning.

As first revealed by Flightglobal, the two companies created a strategic partnership that will allow BlueBird to better penetrate the huge Indian market for micro- and mini-UAS.

Bluebird chief executive Ronen Nadir says that Piramal’s financial strength, global reach and position in key markets will help BlueBird make better use of its potential.

Sources in Israel said the investment was made through Piramal’s US subsidiary. The sources added that the initial investment may lead to more potential investment in Israeli companies.

Piramal Enterprises – formally Piramal Healthcare – is one of the largest pharmaceutical custom manufacturing companies in the world. The company has been investing in the defence sector, and the acquisition of BlueBird shares is part of its strategic policy.

I understand that the purchase of the shares is more than just a one-time investment – Piramal has expressed its plans to use the partnership with the Israeli firm as a springboard for more investments.

The logic behind the purchase and the expected follow-up is clear – Israel has the technology that the Indian defence forces need, and the potential for business in coming years is huge.

If we take only the Indian operational needs for micro- and mini-UAS, we’re talking about thousands of systems worth $1.25 billion.

That alone is a driver for joint ventures between Indian money and Israeli technology.

, , , ,

One Response to A joint effort to gain big pieces of a huge market

  1. cardio trainning 13 September, 2013 at 1:57 am #

    Is it doesn’t best time for making a number of programs with the long term in fact it is time and energy to be very glad. We’ve check this out submit and in case I might I wish to suggest you several useful difficulties and also ideas. You could compose pursuing reports with this article. I would like to study a lot more reasons for the item!

Leave a Reply