DCX Systems Limited, a prominent Indian defence manufacturing company specialising in system integration, cable and wire harness manufacturing, and kitting, has entered into a significant Joint Venture Agreement with Israel Aerospace Industries’ (IAI) ELTA Systems Limited and its group companies on April 21, 2025.

This collaboration aims to establish a Joint Venture Company (JVC) in India focused on the design, development, and manufacturing of advanced radar systems, including Airborne Maritime Radar, Fire Control Radar, and other radar technologies for both airborne and land-based applications. This initiative aligns with the Indian government's "Make in India" program, emphasizing domestic production and technology development in the defence sector.

The shareholding structure of the new JVC will have ELTA Group holding a majority stake of 63%, while DCX Systems will hold the remaining 37%. The initial Board of Directors will consist of four members—three nominated by ELTA and one by DCX—with plans to expand to five directors after DCX completes its full investment, increasing DCX’s representation to two directors.

ELTA will nominate the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), subject to board approval, and provide an exclusive technology license to the JVC for "Make in India" projects, excluding government-to-government and government-to-commercial contracts. The agreement also covers critical aspects such as capital structure, reserved matters, management, intellectual property rights, call options, and deadlock resolution mechanisms.

This joint venture builds on a long-standing partnership between DCX and ELTA, leveraging their complementary expertise and resources to maximize business opportunities in the Indian defence sector. DCX Systems, established in 2011, has established itself as a trusted Indian Offset Partner for foreign original equipment manufacturers, particularly in aerospace and defence, with a diverse client base across Israel, the United States, Korea, and India.

Financially, DCX Systems has a robust order book valued at ₹3,359 crore as of December 31, 2024, reflecting strong demand and ongoing contracts in the defence and aerospace sectors.

Despite some recent financial challenges, including a 19% revenue decline and a 69% drop in net profit in Q1 FY25 due to increased costs, DCX Systems continues to secure substantial new orders, such as a ₹107 crore contract for electronic kits and cable assemblies, and maintains a strong position in the defence electronics manufacturing space.

Its subsidiary, Raneal Advanced Systems, and a railway joint venture are also expected to contribute positively to future revenues.

The strategic joint venture with ELTA Systems marks a significant milestone for DCX Systems, positioning it to expand its footprint in advanced radar technology manufacturing within India, leveraging cutting-edge Israeli technology under a "Make in India" framework. This development has been well received by the market, reflecting optimism about DCX’s growth prospects and its role in the evolving Indian defence ecosystem.

Agencies