Rossell India receives approval from India Foreign Investment Promotion Board to form JV company with CAE
Today at the Defexpo show, Rossell India Limited announced it has received approval from the Indian Foreign Investment Promotion Board (FIPB) to form a joint venture company with CAE to provide synthetic training solutions for the Indian defence market.
Under terms of the shareholders agreement, Rossell India Limited will hold a 74 percent share of the joint venture company with CAE holding a 26 percent share.
The Military Simulation, Modelling and Virtual Training Market 2013-2023
The objective of the joint venture will be to focus primarily on providing training solutions for defence procurements where India is acquiring foreign platforms. The Indian Ministry of Defence is seeking to further develop the indigenous capabilities of Indian industry and this Indian-owned joint venture company will fully qualify to meet this objective under the Indian offset criteria for defence programs.
"Rossell has been looking for growth opportunities and we are pleased to form a joint venture with a global leader such as CAE," said Harsh Mohan Gupta, Executive Chairman, Rossell India Limited. "The Indian Ministry of Defence has specifically recognized simulation and training services as being eligible for offsets so we expect this company, which will have access to CAE's world-class technology and experience, to be an attractive partner to foreign OEMs looking to meet offset requirements."
"The Indian defence forces recognize the benefit that simulation can provide to enhance their operational training while reducing costs, and are now requiring high fidelity simulation for all their major platform acquisitions," said Martin Gagne, CAE's Group President, Military Products, Training and Services. "CAE believes simulation and training will continue to take on more importance in India, which is why we have and will continue to make significant investments in-country. We are firmly committed to being a long-term partner by bringing our world-class technology and capabilities to India's defence forces."
Source : CAE