Rafael Advanced Defense Systems Ltd, the Israeli armaments major, is to form a joint venture company with Bharat Electronics Ltd to manufacture several of the company's air-to-air and air-to-surface weapon systems.

Negotiations about the establishment of the venture have reached "advanced stages", said Rafael's vice-president, marketing Lova Drori just before AeroIndia 2009 got under way in Bangalore. The move is intended to enable Rafael to increase its sales in the Indian market, and to meet technology transfer and offset requirements.

Drori says the full line of aerial weapon systems manufactured by Rafael will be offered for local assembly and production by the joint company, and believes there is "huge" potential demand for the equipment.