Dassault Aviation to take majority stake in Dassault Reliance Aerospace

New Delhi: French aerospace giant Dassault Aviation has announced plans to raise its stake in Dassault Reliance Aerospace Limited (DRAL) to 51%, gaining majority control of the joint venture it formed with Reliance Group in 2017.

The move signals Dassault’s long-term commitment to India’s defence and aerospace sector, amid rising demand for indigenous manufacturing under the “Make in India” initiative. The company is expected to increase its shareholding by purchasing additional equity from Reliance Infrastructure, which currently holds the majority stake, according to the news report.

DRAL was established as part of Dassault’s offset obligations following India’s purchase of 36 Rafale fighter jets in 2016. The joint venture operates a manufacturing facility in Nagpur, Maharashtra, which currently produces components for the Falcon business jets and is seen as a potential site for future fighter jet assembly.

In a statement, Dassault Aviation said, “This strategic decision reflects our confidence in the Indian aerospace ecosystem and our commitment to developing a long-term industrial presence in the country.”

The shift in ownership structure comes at a time when India is pushing foreign defence companies to increase local manufacturing and transfer of technology. By taking majority control, Dassault may gain greater operational flexibility and streamline decision-making in DRAL’s future projects, including potential collaboration on the Indian Air Force’s Multi-Role Fighter Aircraft (MRFA) program.

Industry analysts suggest that the move could pave the way for deeper integration of DRAL into Dassault’s global supply chain and potentially increase exports from the Indian facility.

While financial details of the stake acquisition were not disclosed, the transaction is expected to be completed following regulatory approvals from Indian authorities.

The development marks a significant shift in India-France defence industrial ties, positioning DRAL as a key pillar in Dassault’s global manufacturing strategy.