RADA and ADTL Sign MOU to Establish JV in India

Rhea-AI Summary

RADA Electronic Industries Ltd. (NASDAQ: RADA) has announced a Memorandum of Understanding with Alpha Design Technologies Pvt. Ltd. to form a Joint Venture aimed at marketing and manufacturing its advanced radar systems in India. This strategic alliance aligns with India's defense policies and aims to capitalize on the growing need for defense technologies tailored to local requirements. RADA's CEO, Dov Sella, emphasized the importance of establishing a local presence to better serve the Indian Armed Forces, while ADTL highlighted the compatibility of RADA's radars with emerging threats.

Positive

• Establishment of Joint Venture with Alpha Design Technologies to expand market reach in India.
• Alignment with Indian government's 'Make in India' initiative, enhancing local manufacturing presence.
• RADA's radars meet the requirements for Indian defense operations, including counter UAV and air defense.

Negative

• None.

NETANYA, Israel, Aug. 16, 2021 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (NASDAQ: RADA, TASE: RADA), a leading global provider of advanced software-defined tactical radars for the maneuver force (“RADA”), and Alpha Design Technologies Pvt. Ltd., (“ADTL”), a 1,200+ people-strong, professional R&D and Production Organization, focused on the Defense and Aerospace domain, have executed a Memorandum of Understanding to establish a Joint Venture to market, manufacture, sell and support RADA’s radars in India.

Based on Indian defense doctrines for air defense and force protection, RADA envisions this market as a strategic growth opportunity. In line with the Indian Government's policies of “Make in India”, RADA decided to establish a strong local presence in India - in partnership with a leading local defense company, offering the private and public defense industry in India, advanced, locally-adapted and produced, tactical radars which are tailored to the unique requirements of the Indian Armed Forces. Among the operational missions in which this advanced technology would be used are, mobile short range air defense, counter UAV, counter mortars, artillery and rockets (C-RAM), active protection of armored vehicles, and others.

Dov Sella, RADA’s CEO, commented, “Our business strategy is to establish substantial local presence in our key markets. India is such a market for us, and we look forward to begin building our Indian entity with our partner ADTL. We have been impressed by ADTL’s proven track-record in building a successful business, providing advanced systems to the Indian Armed Forces and partnering with non-Indian defense companies for the Indian market, and we are pleased that they have chosen to partner with us to capture this opportunity. We believe that now is the right timing to develop our Indian market presence and become a provider of our cutting-edge technologies and solutions to the Indian Armed Forces.”

Col. H. S. Shankar, VSM (Retd.), Chairman & Managing Director of ADTL, added, “RADA’s combat-proven radars are uniquely suited to the requirements of the Indian armed services, with their next-generation capabilities against UAVs and other current and emerging threats, at their market-leading price/performance point. We are pleased that RADA has chosen us as their partner in India and look forward to working together to address the needs of all local system integrators and security forces alike.”  

About RADA

RADA is a global defense technology company focused on proprietary radar solutions and legacy avionics systems. The Company is a leader in mini-tactical radars, serving attractive, high-growth markets, including active military protection, counter-UAS, critical infrastructure protection and border surveillance.

About ADTL

ADTL is one of the fastest growing defense and aerospace Private Sector Companies in India, which specializes in Fire Control Radars, Surveillance Radars, Upgrade of Missile Control Radars, C3I Systems, Tactical Communications, including SDRs, EW, Avionics and Space Systems. Adani Defence and Aerospace have recently invested heavily in ADTL and together they form a strong combination to take on the Government of India’s program for self-reliance, “Aatma Nirbhar Bharat”.

Contacts for RADA:

Company Contact: Avi Israel (CFO) Tel: +972 76538 6200 mrkt@rada.com www.rada.com

IR Contact GK Investor Relations Ehud Helft, Partner Tel: 1 617 318 3096 rada@gkir.com

Contacts for ADTL:

P V Balasubramanyam
Sr Vice President (Corp Planning & Offsets)
Tel: +91-80-42556-936
Fax: +91-80-2521-6541
Email: balu@adtl.co.in

FAQ

What is the purpose of RADA's Joint Venture in India?

The Joint Venture aims to market, manufacture, sell, and support RADA's advanced radar systems in India, addressing local defense needs.

When was the Memorandum of Understanding for the Joint Venture executed?

The Memorandum of Understanding was executed on August 16, 2021.

How will RADA's radars benefit the Indian Armed Forces?

RADA's radars are designed to meet the operational needs of the Indian Armed Forces, including mobile air defense and counter UAV capabilities.

What company is partnering with RADA in India?

RADA is partnering with Alpha Design Technologies Pvt. Ltd. for the Joint Venture.

What is the stock symbol for RADA Electronic Industries?

The stock symbol for RADA Electronic Industries is RADA.