In a major development that signals deeper Indo-Israeli defence cooperation, DCX Systems, a leading Indian defence manufacturing company, has signed a Joint Venture Agreement (JVA) with ELTA Systems, a subsidiary of Israel Aerospace Industries (IAI), on 21 April 2025. The partnership has formed a new joint venture entity called ELTX to enhance India’s self-reliance in advanced radar systems under the government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.
DCX Systems + ELTA = ELTX
ELTX will operate in India and will design, develop and manufacture next generation radar systems. These include Airborne Maritime Radar Systems, Fire Control Radar Systems and other advanced radar technologies for airborne and land based defence applications.
According to the regulatory filing by DCX Systems to the BSE and NSE, ELTA will hold 63% stake and DCX will hold 37% in the new joint venture. This reflects Israeli technological input and DCX’s presence in the Indian defence ecosystem.
Terms of the Agreement
As per the official filing and media reports:
- ELTA will grant ELTX exclusive technology licence for use in Indian Make in India projects, excluding government to government (G2G) and government to consumer (G2C) projects.
- Initial board of the Joint Venture Company (JVC) will have four directors – three nominated by ELTA and one by DCX. After DCX’s full investment, the board will have five members with DCX having two seats.
- Key leadership positions including CEO and CFO of ELTX will be nominated by ELTA pending board approval.
- Provisions cover capital structure, reserved matters, IP rights, management protocols, call options and conflict resolution mechanisms.
This partnership brings together complementary strengths with ELTA bringing in cutting edge technology and DCX providing a domestic industrial base and integration expertise. DCX does not hold any equity in ELTA or its subsidiaries, so this is a strategic alliance and not a related party transaction.
Financial and Market Impact
The announcement triggered an instant rise in DCX Systems’ stock price, as investors liked the deal:
- On 21 April 2025, DCX shares rose 11.15% to INR 275 per share. The company’s market cap has gone up to INR 3,776.6 crore, up 40% from 52-week low of INR 200 per share. DCX has an order book of INR 3,359 crore, making it a key player in India’s defence supply chain.
Building a Stronger Defence Ecosystem
Israel Aerospace Industries, through ELTA and its Indian subsidiaries, has already made long-term investments in India’s defence ecosystem. These include:
- Launch of a dedicated radar MRO facility in Hyderabad.
- Partnerships with institutions like IIT, Delhi.
- Innovation Acceleration Programme to engage with Indian deep-tech startups.
Boaz Levy, President and CEO of IAI said: “This is another big milestone in the defence partnership between Israel and India. By combining Israeli innovation with India’s growing industry, we are happy to co-develop next gen technologies that address evolving security needs and India’s ‘Make in India’ vision.”
About DCX Systems
Founded in 2011, DCX Systems is an offset partner for global OEMs, specialising in electronic system integration, cable and wire harness manufacturing, and microwave module production. With customers in Israel, US, Korea and India, DCX serves aerospace, defence and medical industries.
DCX’s facilities at Karnataka’s Hitech Defence and Aerospace Park are AS9100D certified and cater to domestic and international defence requirements.
Conclusion
ELTX is a big strategic move for India’s defence self-reliance. Combining Israeli radar with Indian manufacturing, DCX-ELTA will increase indigenous capacity, create jobs and integrate India into global defence innovation. This will also strengthen bilateral ties and make India a defence manufacturing hub.
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