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IAI IN A TIME OF TRANSFORMATION
Geopolitics
|December 2022
As the local subsidiary of a foreign company enters into a JV with an Indian company with up to 75 percent ownership, the formation facilitates the rapid indigenisation of products and systems, enabling the company to become part of the local industrial ecosystem
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DefExpo-2022 set the stage for IAI India- the new business formation IAI has set for India. The new company is in the making and follows over 30 years of successful and ever growing businesses IAI has pursued with India. The local executive team is investing great efforts to adopt a new formation and business infrastructure to support ongoing and new activities within the new realities of the Indian market.
IAI has a well-established operation in India, working with various partners and customers in the Indian market. Through the years, IAI has pursued a flexible and adaptive business policy to comply and respect Prime Minister Narendra Modi's ‘self-reliance’ and ‘Make for the World’ visions.
This policy requires major primes such as IAI to 'blend in', becoming a self-sufficient Indian entity. By operating as local businesses, these companies can pursue indigenous development of subsystems and components, thus reducing the dependence of DPSUs on imports. As local enterprises, these companies will be able to join development and procurement programmes as team members and even primes, help harness the design capabilities of the domestic defence industry, and position India as an important defence systems exporter.
Such changes aren't taken lightly as they reflect a new focus on the pace, requirements, financing, and priorities set by the local customers. This strategy is expected to expand current agreements as the newly established company pursues JVs with partners, elevating existing cooperation agreements with local public and private sector companies into JVs.
IAI is positioned to expand and grow its activities by forming IAI India Group- an Indian holding company, which will become the center of IAI's local activities.
Denne historien er fra December 2022-utgaven av Geopolitics.
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