Paras Defence and Space Technologies Ltd has announced a strategic joint venture with Israel-based Heven Drones Ltd to manufacture logistics and cargo drones in India, marking a significant move in the growing drone sector under the Government of India’s “Make-in-India” initiative. The agreement, formalized through a Memorandum of Understanding signed yesterday, establishes “Paras Heven Drones India”, a 51:49 joint venture in which Paras Defence holds the majority stake. The new entity will focus on designing, developing, and producing advanced logistics drones capable of carrying payloads ranging from 10 kg to 40 kg for both defence and civilian applications.
“We believe that we could be able to be in business in the next couple of quarters,” said Munjal Shah, Managing Director of Paras Defence, at a press conference. “We are very hopeful that in the next financial year onwards, we could be able to reach our goal of selling in hundreds each year.”
One of the most promising aspects of the joint venture is the integration of Heven Drones’ hydrogen-powered drone technology, which significantly outperforms conventional battery-powered systems in flight endurance. Heven’s current hydrogen drones can carry 5 kg for up to 2.5 hours, with larger models in development capable of carrying 23 kg for up to 12 hours.
“Heven is one of the biggest companies in Israel that uses drones,” said Yossi Weiss, President of Heven Drones and former CEO of Israel Aerospace Industries. “Our product will be for all applications — civilian and defence alike.”
The joint venture will begin with an initial investment of $1 million, focusing on building infrastructure and acquiring test equipment. While critical components will be imported from Israel, a significant portion of manufacturing will be done domestically to align with Indian government mandates and reduce costs. The local manufacturing strategy is expected to make the drones at least 20% more cost-effective than their Israeli-made counterparts.
The Indian market for logistics drones — spanning defence resupply missions, disaster response, and commercial deliveries — is projected to exceed $1 billion, creating fertile ground for the new venture. The companies aim to establish themselves as market leaders by offering advanced, cost-competitive technology.
Weiss emphasized the readiness of both companies to scale production: “The infrastructure, the production lines in Paras and the production lines in Heven Drones as well are capable of supplying tens of units per month.” He added that many of the drone models are combat-proven, increasing their credibility for defence use.
Beyond India, Paras Heven Drones India also plans to export to global markets, leveraging Paras Defence’s deep roots in Indian manufacturing and Heven’s innovation leadership. The venture further cements Paras’ track record of successful collaborations with Israeli tech firms. With prices for electric-powered logistics drones averaging ₹50 lakhs, the joint venture aims to produce and sell several hundred units annually, establishing a dominant presence in both domestic and international drone markets.
With over four decades of experience, Paras Defence and Space Technologies Ltd. is a leading provider of defence and space solutions in India. The company specializes in Defence Electronics, Defence & Space Optics, Electromagnetic Pulse Protection, and Heavy Engineering, offering a wide range of products and services from concept to commissioning.
Heven Israel is an Israeli technology company renowned for its innovative solutions in the defence sector. Specializing in advanced electro-optic and infrared systems, Heven Israel has a proven track record in delivering high-performance technologies for military and security applications. This partnership marks a significant milestone in enhancing India’s indigenous defence manufacturing capabilities and is expected to contribute substantially to the nation’s security infrastructure.
