RIL to invest $1 billion To Augment Its Aerospace Division
Reliance Industries Limited (RIL) owned by MukeshAmbani, intends to infuse around $1 billion in the forthcoming years in the Aerospace division, based on reports from Economic Times on Sunday. To bolster this business segment, it will bring on board around 1500 people and merge with leading global players. Two executives aware of this move confirmed the news,but chose to remain anonymous.
Business Daily had reported earlier this month that Reliance had applied to the government for the license to manufacture, design and develop equipments and their constituents including radars, airframes, engines and other accessories for military and civilian aircraft , aerostats and unmanned airborne vehicles. This has always been their primary agenda since the launch of the RelianceAerospace venture,a year back. VivekLall, who has had a successful stint in NASA, Raytheon, and Boeing, heads their aerospace and Homeland Security division. He has previously won awards including North Asian Pacific American Achievement Award from Salt Lake City, Utah and Gold Medal for Scientific Contributions to Aerospace from the Cambridge University, UK.
The company had previously mentioned that aerospace division is a major segment of the company. RIL has an upper hand over other companies owing to its colossal cash reserves and closely-knit network. Robert Metzger, aerospace consultant from Washington and an expert in Indian Aerospace and defence market stated that it is increasingly difficult and requires nerve for a private sector to foray in the aerospace segment in India. He also mentioned that Reliance’s opening doors to this division exhibits its determination and grit to overcome the many challenges on its path to be the frontrunner in this division. India should be glad and encourage such moves. The country’s constant inclination towards the public sector in this segment has been a huge hurdle for private sectors. Considering the same, Reliance must be conscious of every decision that it takes and must reach out to products outside areas that entail direct Government authority. On the other side, clients will be glad to work with a private sector owing to the poor performance of the public sector.
Mukesh Ambani dreams of building an aerospace company that is bigger and better than the best in the world. The company has always believed in bringing in the finest technology from the pioneers in the international arena and will adhere to the same with respect to the aerospace division. The company holds research as the key to their growth and will hence prioritize researching and testing of new aerospace technologies, components, etc. Nasik in Maharashtra, India is expected to be its headquarters for this segment.
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