Reliance emerges as the leading offset partner for Rafale

Anil Ambani’s Reliance Group is set to gain from the just signed Rafale aircraft deal. Reliance signed a Joint Venture with Dassault Aviation France for providing components for construction of the 36 fighter craft that India is going to purchase from the French Company.

The Rs 60000 crore deal has a 50% offset content with Indian firms getting opportunity to supply components. Domestic value addition opportunity for the indian industry is estimated to be Rs 24000 crores out of the deal.

Nearly 74 percent of the 50 percent offset value should be exported from India. This means that nearly 40% of the total deal amount or approximately Rs 24000 crores.

As per indications, domestic private sector firms are competing to get sourcing right for Rafale. Major player, Mahindra Aerospace is expected to join the party soon. But leading business tycoon Anil Ambani has secured an early victory by signing the contract with the French company.

Reports indicate that Reliance has formed a joint venture Dassault Reliance Aerospace and the JV will produce components at Nagpur SEZ.