DCX Systems Limited, an established player in the Indian aerospace and defence sector, has officially entered into a Joint Venture Agreement with Israel's ELTA Systems, a group company of Israel Aerospace Industries (IAI). The agreement was executed on April 21, 2025, with the intent of setting up a Joint Venture Company (JVC) in India. This collaboration aims to focus on critical defence and aerospace technologies, particularly in the production of Airborne Maritime Radar Systems, Fire Control Radar Systems, and other radar systems suited for both airborne and land applications. The establishment of this joint venture aligns with the Indian government’s "Make in India" initiative, which encourages domestic production of cutting-edge defence technologies.

The joint venture will leverage the complementary strengths of both companies, bringing together ELTA's technological expertise and DCX’s deep-rooted presence in the Indian aerospace sector. As per the terms of the agreement, ELTA Systems will grant exclusive technology licenses to the JVC, allowing the production of these systems within India, with certain exclusions for Government-to-Government (G2G) and Government-to-Consumer (G2C) projects.

Key Terms of the Joint Venture Agreement:

• The proposed ownership structure will see ELTA Systems holding 63% of the equity in the venture, while DCX Systems will hold a 37% stake.

• The Board of Directors will initially comprise four members: three appointed by ELTA Systems and one by DCX Systems. Upon full investment by DCX, the board will expand to five members, with ELTA maintaining a majority presence.

• ELTA will also be responsible for nominating the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of the venture, subject to board approval.

This partnership is poised to enhance the production and delivery of defence technologies in India, catering to both domestic needs and international markets. The technological collaboration aims to meet the demands of India’s defence sector, strengthening national security capabilities through locally manufactured products that meet global standards.

In addition to the radar systems development, the joint venture will focus on long-term business interests and growing market opportunities, particularly in the growing field of airborne and land-based radar systems. DCX Systems is optimistic that this strategic partnership will significantly contribute to the "Make in India" vision, further boosting the country’s self-reliance in defence technology manufacturing.

Both companies have committed to a strong, collaborative relationship, combining ELTA Systems' proven experience and innovation with DCX Systems' expertise in the Indian defence market. With the venture slated to expand its footprint in India, this agreement underscores the ongoing push for self-reliance in critical sectors such as aerospace and defence.

The agreement also touches on several important areas such as capital structure, management rights, and intellectual property concerns. A key feature of the JV is the potential for significant growth and innovation in radar technology, paving the way for a long-lasting and productive relationship between the two companies.

DCX Systems Limited remains committed to being a key player in the Indian aerospace and defence ecosystem, and this partnership with ELTA Systems represents a significant milestone in advancing India’s defence capabilities. Through this joint venture, both companies aim to enhance technological developments, generate employment, and contribute towards India’s goal of achieving greater technological and economic self-sufficiency in defence manufacturing.

This disclosure complies with Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements, ensuring transparency and timely communication of material agreements that affect stakeholders and market participants.

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