Keeping in tune with 'Make in India' programme in the defence sector, Kalyani Group, owners of Bharat Forge the world's second biggest forging company, announced a joint venture (JV) with Rafael Advanced Defence System from Israel.
The venture will be based in Hyderabad and Kalyani Group will hold 51% in the JV with the rest vesting with Rafael.
The Spike anti-tank guided missile will be manufactured under the venture with the help of Rafael, which will transfer the necessary technology to its Indian partner. The missile will then be supplied to the Indian Armed Forces.
"We believe in the vision of 'Make in India' and our proposed joint venture with Rafael is a step in this direction," The Economic Times quoted chairman of Kalyani Group, Baba Kalyani as saying on Thursday.
"The government's defence focus plan gives us huge scope of work. We plan to add the group's muscle, might to the 'Make In India' plan."
While the financial details of the deal have not been revealed, it is understood that Bharat Forge is set to make a substantial investment over a period of time and will manufacture high-tech systems in remote weapons and missiles.
Kalyani noted that Rafael has been working with the Indian defence sector for over two decades and that defence production would become a strategic area for Bharat Forge.
"As part of our global strategy, we form alliances to develop military applications based on our proprietary technologies," said Itzhak Gat, chairman of Rafael.
"In Kalyani Group we see lot of synergy and opportunities for growth in new markets and especially in India which is a strategic market for us."
The announcement was made as Asia's largest aviation expo Aero India 2015 is into its second day, with the Israeli Defence Minister Moshe Ya'alon attending the event.