In a significant strategic move, Paras Defence and Space Technologies Limited has announced a Joint Venture (JV) with Heven Drones Ltd., an Israel-based drone technology company. This collaboration will lead to the formation of a new Indian subsidiary dedicated to the development and production of logistics and cargo drones for both defence and civil markets.

This initiative is aligned with the Government of India’s Make in India campaign and is expected to further bolster the country’s domestic drone manufacturing ecosystem.

Key Details of the Joint Venture

The Joint Venture Agreement was approved by Paras Defence’s Board of Directors on May 23, 2025, and marks a continuation of discussions initiated earlier in the month. Under the terms of this agreement, a new company—tentatively named either “Paras Heven Advanced Drones Private Limited” or “Paras Heven Drones Private Limited”—will be incorporated in India.

The shareholding in the proposed subsidiary will be split as follows:

• Paras Defence: 51%

• Heven Drones Ltd.: 49%

This arrangement ensures majority control remains with the Indian partner, in line with India’s regulations for defence-related entities.

Both companies will nominate two directors each to the Board of the new entity, ensuring balanced decision-making and joint operational control. The initial paid-up capital will be modest—₹1,00,000 divided into 10,000 equity shares—but the venture sets a strong foundation for scaling operations rapidly in the coming years.

Strategic Goals of the JV

The new company will focus on the design, development, and manufacturing of cargo and logistics drones, targeting applications in:

• Military logistics, for transporting materials in conflict or border zones

• Civil supply chains, such as emergency medical deliveries, remote area access, and commercial logistics

The venture is expected to serve Indian as well as global markets, bringing Israeli drone expertise together with Indian manufacturing strength.

This development comes at a time when both countries are intensifying collaboration in aerospace and defence technologies.

Make in India and Drone Sector Growth

The Indian government has been pushing for self-reliance in defence manufacturing, and drones have emerged as a priority segment. The Make in India initiative, launched in 2014, has gained renewed momentum in recent years with substantial investments and policy support.

By forming this JV, Paras Defence is not only expanding its portfolio beyond traditional defence systems but is also positioning itself as a key player in India’s evolving drone ecosystem.

Heven Drones, on the other hand, gains a direct entry into one of the fastest-growing drone markets globally, with the added benefit of local production under a trusted Indian partner.

Regulatory and Investment Details

According to regulatory disclosures:

• The investment by Paras Defence is not considered a related party transaction.

• There is no existing shareholding relationship between Paras and Heven Drones.

• The entire investment into the share capital is being made in cash.

• The agreement includes pre-emptive rights, standard clauses for transfer restrictions, and board representation provisions.

No government or regulatory approvals are required at this stage for setting up the entity, since it is being incorporated with initial capital only.

Financial Overview

Though the proposed subsidiary has not yet commenced operations, the initial authorised and paid-up capital is set at ₹1,00,000. Paras Defence will subscribe to 5,100 shares (₹51,000), ensuring a majority stake.

There are currently no revenue or historical financial figures available for the entity, given that it is yet to be incorporated.

However, based on industry trends and increasing demand for unmanned logistics solutions, this JV is expected to contribute meaningfully to Paras Defence’s growth in the coming years.

Outlook and Industry Impact

This collaboration is viewed as a positive development for both companies and the broader industry:

• It combines Israeli drone innovation with Indian manufacturing capability.

• It addresses a critical market need for efficient, autonomous logistics solutions in both military and civil sectors.

• It supports India’s technology indigenisation efforts while allowing foreign players to participate via compliant joint ventures.

Given India’s ambitious plans for becoming a global drone hub, ventures like this one will likely become increasingly common.

Conclusion

The Joint Venture between Paras Defence and Heven Drones represents a forward-thinking step into the rapidly growing drone technology sector. With strong technological backing, policy alignment, and market potential, the new entity is poised to become a leader in cargo and logistics drone manufacturing in India and abroad.

This announcement underlines Paras Defence’s commitment to innovation, strategic partnerships, and expansion into next-generation technologies, reinforcing its stature in the Indian defence manufacturing landscape.

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