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Micronet Enertec Signs Teaming Agreement With India's Cyient DLM
April 18, 2017
Enertec Systems 2001 Ltd., a subsidiary of Micronet Enertec Technologies, Inc. based in Montvale, New Jersey, has agreed with India-based Cyient DLM Private Limited, to jointly pursue contracts with Israeli Aerospace and Defense companies that have offset obligations in India.
These obligations are based on an ongoing Aerospace and Defense trade agreement between the governments of India and Israel. India and Israel have strong trade ties, with the value of Aerospace and Defense contracts between the countries totaling over $9 billion between 1999 and 2009.
India is the largest purchaser of Israeli Aerospace and Defense equipment, currently estimated at a rate of over $2 billion per year. Israel is India's second largest Aerospace and Defense supplier.
Per the inter-governmental trade agreement between the two countries, and in accordance with India's Aerospace and Defense Procurement Procedures (DPP), any Indian purchase of foreign military equipment over a certain amount necessitates an offset procurement of 30% of its value by the Israeli government.
Cyient is an Indian Aerospace and Defense company focused on engineering, networks and operations, established in 1991. It has over 12,000 employees across 38 global locations and was featured among the top 30 outsourcing companies in the world during 2014.
Based on the Teaming Agreement, Enertec and Cyient will jointly bid on Aerospace and Defense contracts that are part of any required offset pursuant to the DPP. Enertec will lead planning and design, while Cyient will lead procurements and production in India, thereby meeting offset requirements.
"One of Enertec's largest Aerospace and Defense customers just received a $1.1 billion contract approved by the Indian government. This substantial contract is one part of a $3 billion agreement between India and Israel's top Aerospace and Defense contractors," stated David Lucatz, CEO and Chairman of Micronet Enertec Technologies Inc..
"Trade contracts of this magnitude increases the need for more offset transactions, whereby Israel is obligated to purchase Aerospace and Defense services from India. By teaming up with India-based Cyient, Enertec is well positioned to potentially benefit from this trade opportunity, while having the ability to tackle larger scale projects".
Copyright: North America Procurement Council, Inc. PBC