Bharat Forge's subsidiary Kalyani Strategic Systems (KSSL), the defense arm of Kalyani Group and Israel Aerospace Industries (IAI) signed a Memorandum of Understanding (MOU) to incorporate a Joint Venture Company (JVC) in India.

As part of the MOU IAI and KSSL are aiming to expand their presence in the Indian defense market and to Build, Market and Manufacture specific Air Defense Systems and Ground to Ground & Ground to Sea Munitions.

The MOU was signed in Bangalore, India, at the Aero-India exhibition by Joseph Weiss, IAI's President and CEO and Baba Kalyani, Chairman Kalyani Group.

The MOU is the first step of a process to establish a JVC between the two companies. The JVC will integrate strategic state-of-the-art defense systems for the Indian MOD in accordance with the Indian Government's 'Make in India' policy.

Shares of the company gained Rs 25.95, or 2.55%, to trade at Rs 1,044.20. The total volume of shares traded was 50,991 at the BSE (1.12 p.m., Thursday).