Russian arms maker Kalashnikov is pursuing joint ventures as it seeks to sell new products in the Gulf and grow its annual revenue by more than 60 per cent by 2025.
The state-owned manufacturer has set a revenue target of 50 billion roubles ($676 million) by 2025, up from 30bn roubles last year, chief executive Dmitry Tarasov told The National on Monday on the sidelines of the International Defence Exhibition and Conference.
It expects sales to grow 25 per cent each year.
Kalashnikov plans to boost revenue through new product sales, expansion and continued growth in its home market, where it produces about 95 per cent of all small arms in the country, he said.
Mr Tarasov said the company's biggest foreign markets were in the Middle East, Africa and Asia. However, he declined to reveal new target markets.
“The growth will be driven by defence firearms, robotic systems, unmanned aerial vehicles, civilian products for medical purposes and also machines,” he said.
“We are looking at expanding in the export markets which we already have and we are also open for co-operation in other regions.”
Chambered for 5.56x45 rounds, one of the most popular rifle rounds in the world, the weapon was developed specifically for the export market.
The company is confident it can secure orders from foreign customers and has already begun to receive inquiries.
Charles Dufour of Cebair, with the Chimera, an anti-drone system. Victor Besa / The National
Idex 2021, the first major in-person exhibition held in Abu Dhabi since the start of the Covid-19 pandemic, opened its doors on Sunday morning. Victor Besa / The National
Abdulelah Al Mohaimeed, of Wahaj of Saudi Arabia, shows his company's 50-calibre heavy machine gun, at Idex 2021 in Abu Dhabi. Victor Besa / The National
Saeed Al Mansoori examines a Glock 9mm pistol at at Idex 2021. The event features up to 1,000 defence companies. Victor Besa / The National
A model of the NHIndustries NH90 multi-role military helicopter on display at Idex 2021. Victor Besa / The National
Visitors view a Desert Sting-16 missile, built by UAE defence conglomerate EDGE, at Idex 2021. About 15 per cent of the 1,000 companies represented at event are Emirati. Victor Besa / The National
Idex 2021 is the first major in-person exhibition in Abu Dhabi since the start of the Covid-19 pandemic. International attendees do not need to quarantine, but must undertake regular PCR tests. Victor Besa / The National
Strict anti-coronavirus measures are in place at Idex 2021, including reminders for visitors to adhere to social distancing. Victor Besa / The National
A robot mops the floor as visitors explore the 35,000 square metres of exhibition space at Idex 2021. Victor Besa / The National
Omar Al Matrooshi and Rashed Al Raess hold 9mm pistols made by Austrian manufacturer Glock. About 800 international companies are attending Idex 2021. Victor Besa / The National
Omar Al Matrooshi and Rashed Al Raess examine Glock 9mm pistols at Idex 2021. There are 12 exhibition halls at the event. Victor Besa / The National
Visitors examine sniper rifles made by UAE arms manufacturer Caracal, at Idex 2021. Victor Besa / The National
A close-up view of a 100-kilogram laser/satellite guided bomb at Idex 2021. Victor Besa / The National
Organisers expect 70,000 visitors to attend Idex 2021. Victor Besa / The National
Visitors adhere to strict social distancing at Adex 2021, the first major in-person exhibition in Abu Dhabi since the start of the Covid-19 pandemic. Victor Besa / The National.
A visitor arrives at Idex 2021. Victor Besa / The National.
Visitors attending Idex 2021 in Abu Dhabi. The biennial event was first held in 1993. Victor Besa / The National
Strict social distancing measures are being implemented at Idex 2021. Victor Besa / The National
Exhibitors at Idex 2021 range from the manufacturers of armoured vehicles to cybersecurity companies. Victor Besa / The National
The total value of deals the UAE is expected to sign this year is likely to be similar to the levels of 2019, organisers have said. Rashed Al Mansoori / Ministry of Presidential Affairs
Sheikh Hamed bin Zayed, Member of Abu Dhabi Executive Council. The UAE Armed Forces awarded Dh5.03 billion in contracts on the first day of Idex, with the lion’s share of the deals going to local companies. Rashed Al Mansoori / Ministry of Presidential Affairs
Sheikh Hamed bin Zayed, Member of Abu Dhabi Executive Council. Participants at this year's Idex are focusing on cyber security, autonomous weapons, and using advanced technologies such as artificial intelligence in defence applications and safe-guarding supply chains during the global health crisis. Rashed Al Mansoori / Ministry of Presidential Affairs
Kalashnikov, which previously signed an agreement with Saudi Arabia to build a plant for the production of AK-103 assault rifles in the kingdom, said the first phase of the project is under technical evaluation.
“After Covid-19 measures are lifted, then there will be more progress,” said Mr Tarasov.
He said the timetable for the project has yet to be formulated.
Kalashnikov is also in the “final stage” of negotiations to set up a production plant in India, he said.
The company plans to boost its presence in the region with products such as assault boats and hunting guns.
“We are looking for partnerships ... it is not just establishing new facilities; we are also looking for co-operation in terms of defence firearms, civilian hunting firearms, pistols and fast assault boats [such as the] BK10 and BK16,” he said.
“We are also looking at modular carrier systems manufactured by one of our subsidiaries called Group 99.”
He revealed that the company is in discussions with several countries and clients but would not disclose further details.
“We are also looking at direct sales and shipments, not just joint projects for the manufacturing. We are open for co-operation and partnership,” said Mr Tarasov.
He said some of the company’s shipments were postponed to 2021 due to the impact of the Covid-19 pandemic.
Idex 2021 day two – in pictures
People attend the International Defence Exhibition and Conference in Abu Dhabi on Monday. The Middle East’s largest defence fair runs until Thursday. All pictures by Victor Besa / The National
The Al Seer Marine Unmanned Ground Vehicle. Al Seer Marine is one of the UAE companies exhibiting at Idex
The Sikorsky UH-60 Black Hawk helicopter
The Majed 01 speedboat manufactured by Abu Dhabi Ship Building
Advanced weapons sit alongside more typical pieces of military kit at the Exhibition
The Sikorsky UH-60 Black Hawk helicopter
Visitors view the Thunder-4 guided system made by UAE defence firm Halcon
Marine vessel crews wash their boats before the start of the day at Idex
Strict measures are in place to protect public health
An engineer sets up the EARTH Automated System manufactured by UAE company NIMR
