France's Dassault Aviation and India's Reliance Group announced in late September 2016 the creation of a joint venture (JV) in India called Dassault Reliance Aerospace.
With this announcement came news that the Dassault Reliance Aerospace JV will be a key player in the execution of offset obligations as a part of the 36 Rafale fighter jet purchase agreement that was signed between France and India on September 23, 2016 and is valued at around €7.87 billion, or about Rs. 59,000 crore. The agreement has a 50% offset obligation, which is the largest-ever offset contract in the history of India, according to a statement from the two companies.
The JV will support India's Prime Minister Narendra Modi’s “Make in India” and “Skill India” policies and develop major Indian programs with high levels of technology transfer to benefit the entire aerospace sector.
The proposed strategic partnership between Dassault and Reliance will also focus on promoting research and development projects under the Indigenously Designed, Developed and Manufactured (IDDM) program, a new initiative of India’s Defense Minister Manohar Parrikar.
“The formation of this joint venture with Reliance Aerospace led by Anil Ambani’s Reliance Group illustrates our strong commitment to establish ourselves in India and to develop strategic industrial partnerships under the “Make in India” policy promoted by the Indian Government,” said Dassault Aviation Chairman and CEO Eric Trappier.
“We are delighted to partner a world leader in aviation like Dassault Aviation, and a visionary leader like Eric Trappier,” said Chairman Anil Dhirubhai Ambani. “This is a transformational moment for the Indian aerospace sector and for Reliance Infrastructure’s subsidiary Reliance Aerospace.”