Israel Aerospace Industries' ELTA Systems and DCX Systems marked a milestone on May four, 2026, by breaking ground on a new radar manufacturing facility in the Shoolagiri Industrial Area in Tamil Nadu as part of their joint venture ELTA Systems. The ceremony was attended by senior leadership from both firms, government officials, industry representatives and key stakeholders. The project was presented as a strategic step to deepen defence industrial cooperation between the partners.

The facility is planned as a centre for the manufacturing, integration and testing of advanced radar systems to serve domestic and international defence requirements and to strengthen indigenous design, development and production capabilities. It was framed as advancing the Atmanirbhar Bharat initiative and aligning with the Make in India agenda by localising critical technologies. The development is intended to support a range of defence programmes through enhanced local capability.

ELTX Systems was described as enabling transfer of knowledge and advanced technologies for high-end defence systems, including airborne radars and ground-based systems, and as a vehicle for workforce upskilling and industry collaboration. The design incorporates scalable infrastructure and is intended to operate under stringent quality and security standards to meet evolving operational needs. The partners indicated that the venture will deepen value addition and support supplier networks, startups and academic institutions.

Construction of the facility is expected to be completed by April 2027, with production planned to commence shortly thereafter. Once operational, the plant is intended to enhance surveillance and threat detection capabilities while contributing to a robust local manufacturing ecosystem and creating employment. The announcement reiterated IAI's long-term commitment to India, noting sustained investments and partnerships that have delivered air and missile defence systems, unmanned aerial systems, satellites, radars and intelligence solutions across India's tri services and government agencies.