Hyderabad, Aug 3 (IANS): Kalyani Rafael Advanced Systems (KRAS), a joint venture between Kalyani Strategic Systems Ltd, and Israel's Rafael Advanced Defence Systems on Thursday inaugurated its facility here for manufacturing the Spike anti-tank guided missile (ATGM) Spike and other defence products.

The facility, the first in the private sector to manufacture missiles, plans to start production in few weeks.

Baba N. Kalyani, chairman, Kalyani Group told reporters that they were waiting for orders from the Indian Army, which he said would be in thousands.

He said they so far invested Rs 60 crore to Rs 70 crore and would be adding a similar additional amount once orders start coming in.

Rafael President and CEO Yoav Har-Even said the company has so far invested $70 million.

Termed as the largest yet FDI in defence, Kalyani holds 51 per cent in the JV while Rafael holds 49 per cent.

Kalyani said the product would have 90 per cent localisation as they developed sub-contractors and supply system.

The facility will provide direct employment to 500 people and indirect employment through vendors and suppliers to 2,000 to 3,000 people.