Shares of Reliance Industries Ltd. are in focus on Monday, August 17, after the company announced its strategic intent to partner with British aerospace major Rolls-Royce to develop India's indigenous combat engine for the Advanced Medium Combat Aircraft programme.
The company, in an exchange filing post-market hours on Friday, August 14, said the partnership will offer capabilities for the design, development, manufacturing and delivery of the combat engine. As part of the partnership, both companies will explore the formation of a dedicated aerospace gas turbine complex which will be a centre of excellence for power and propulsion technology in India, Reliance Industries stated."Our intent with Rolls-Royce is to combine their world-leading expertise in advanced propulsion with Reliance's technology, manufacturing, scale and execution capabilities to build an indigenous aero-engine ecosystem in India.
Together, we aim to build an enduring national capability that can make India self-reliant, and over time, globally competitive in advanced propulsion technologies," Anant Ambani, the executive director of Reliance Industries, said. Can Reliance-Rolls-Royce change that?
Rolls-Royce CEO Turfan Erginbilgic said joining forces with Reliance Industries brings together his company's century-long heritage in advanced engineering and proven engine expertise with the latter's homegrown leadership in Indian industry. "Together, with our existing partnerships and capabilities in India, this marks a major milestone towards building a robust, self-reliant aerospace ecosystem in the country," he said.
Reliance Industries said the aero gas turbine complex will build sovereign, end-to-end Indian capability across design, development, manufacturing, testing, production and through-life support. This will also unlock opportunities to explore wider collaborations across defence, civil aerospace and new power and propulsion systems, it said.33 out of the 34 analysts who have coverage on Reliance Industries have a "buy" rating on the stock, with one solitary "sell" recommendation.
Shares of Reliance Industries ended the previous session 0.6% lower at ₹1,308.7 apiece. The stock has declined 1.4% in the past month and is down 16.9% this year, so far.