Buoyed by the recent success of the Israeli defense sector, Israel Aerospace Industries (IAI) is expanding its operations overseas by establishing its first subsidiaries in India, Germany and the UK. These countries are valued for their significant potential as buyers of security products.
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IAI is establishing a new partnership, holding a 60% stake, with the Indian state-owned company Bharat Electronics Limited (BEL). This new company will support and maintain the military electronic systems sold by IAI to India. This initiative aligns with the Indian government's goal to boost local production of IAI products.
In recent years, IAI has been dealing quite extensively with the Indian navy, selling Barak MX Integrated Air Defense Systems as well as UAVs to the tune of $500 million, among other things.
Ynet has learned that IAI is broadening its international operations on the basis of a recent government ruling. The decision ratified IAI's strategy to form new subsidiaries, execute mergers and initiate collaborations. The objective is to expedite the growth of its business and harness the potential of the worldwide security market. This market has witnessed an unprecedented surge in demand and rekindled attention from various countries, a trend triggered by Russia's bombardment of Ukraine.
In tandem with developments in India, Israel Aerospace Industries (IAI) is setting up fully-owned subsidiaries in Britain and Germany (IAI EUROPE). These entities will serve as cutting-edge sales and marketing hubs for the company's business activities across these countries and the wider continent, promoting the products and services of IAI and its subsidiary, Elta.
Acquisitions with Israeli companies
Furthermore, IAI has recently formed partnerships with several Israeli companies. It has come to Ynet's attention that the company has purchased a 50% stake in an enterprise that specializes in the development of a unique defense solution for military vehicles.
In collaboration with another Israeli firm, IAI is also initiating a company named Ironbrain. This new venture will focus on the development and production of artificial intelligence (AI) solutions for the company's various systems.
This past May, IAI publicized that it had secured a deal to take over INTRACOM DEFENSE, Greece's premier private defense company which also has operations in NATO countries. This acquisition is now a part of IAI's business activities in Greece specifically, and Europe as a whole.
Boaz Levy, the CEO of Aerospace Industries, stated the company is persistently catering to its overseas customers and partners and is pushing forward with deals and initiatives that will augment the array of solutions it can offer. He said, "Our subsidiaries and companies in Israel will provide the highest level of support in the company's fields of activity in the places where it operates and will contribute to achievements and new breakthroughs."
IAI experienced an unprecedented performance in 2023, generating a total of $5.3 billion in sales and amassing a historic peak of $18 billion in order backlog. Of IAI's business operations, 71% is earmarked for export, culminating in a substantial $3.8 billion in 2023.