India signing a deal for 93,895 Close Quarter Battle carbines for will be a key milestone for United Arab Emirate’s CARACAL to invest 49 per cent in a Joint Venture with a domestic manufacturer with full technology transfer, the company’s top executive has said.
The pitch under the ‘Make in India‘ programme is the Emirati company’s bid to save the Indian Army carbine contract — a deal that has been hanging fire for the last two years and one that will mark CARACAL’s entry into the Indian market for the long term.
“A joint venture in India will be the best option for CARACAL to provide full technology transfer and to protect its Intellectual Property,” the company’s Chief Executive Officer Hamad Salem Al Ameri said in an interview through an international video conferencing on Oct. 15.
“The option we have and prefer is 49 per cent that we can own and 51 per cent from the Indian side. It will depend on the partners. We would have preferred 50:50 share. But 49 per cent (Foreign Direct Investment) seems to be the best option, and will depend on what each partner brings to the table such as land and machinery, and from our side, the technology.”
Indian Partnership for CARACAL
CARACAL has already held discussions with several Indian majors for establishing the joint venture for manufacturing the Emirati company’s portfolio of 14 products, covering the entire range of small arms that can find market from both the Indian armed forces and the law enforcement agencies, Al Ameri said.
Al Ameri said CARACAL would be doing a 100 per cent Transfer of Technology to the Indian partner to fulfil the requirement of supplying the 93,895 carbines within a year of signing the contract.
To meet its promise of ‘Make in India’ for its entire portfolio of small arms, CARACAL went about scouting for possible Indian suppliers for its CAR 816 carbine and has certified them to do supplies for the global market already.
“India is a top priority for CARACAL for its business growth. Its priority is only next to our home market, and India is not a ‘one contract’ market. Our products can be supplied to not only the Indian Army, but also to other defense forces and law enforcement agencies. This is not the first time CARACAL is entering a new market to establish business there.”
CARACAL, a part of United Arab Emirates’ EDGE Group, is a high-performance small arms company that designs, engineers, innovates and manufactures battlefield-proven firearms for law enforcement, security and military forces, boasting a production legacy spanning more than 15 years. Its product portfolio includes pistols, submachine guns, assault rifles and sniper rifles across a range of calibres.