Kalashnikov Eyes Indian Partners for Weapons Production

February 6 (RIA Novosti) – Russia’s Kalashnikov Concern is in talks with several Indian companies on setting up joint ventures to produce small arms and high-precision weaponry, a company official said Thursday.

The Kalashnikov Concern, one of the world’s largest firearms producers, makes the famed AK-47 assault rifle and its military derivatives (photo: AK-12).

“India for us is a market with high potential…and we are marketing here all weapons on our production list, including assault rifles, sniper rifles and high-precision weapons,” Andrei Baryshnikov, Kalashnikov exports director, said at the DEFEXPO INDIA-2014 exhibition in New Delhi.

“Taking into account the specifics of Indian legislation, we are considering the possibility of establishing joint ventures on arms production. Talks are underway with specific companies,” Baryshnikov said.

He added that the possible ventures would be involved in production of combat weaponry as well as firearms for civilian use, including hunting rifles and shotguns. 

The Legendary Kalashnikov Assault Rifle

The Kalashnikov Concern, one of the world’s largest firearms producers, makes the famed AK-47 assault rifle and its military derivatives.

The company also produces a wide range of civilian guns for sport shooting and hunting.

It recently signed a deal with a US firm to supply 200,000 firearms annually, and is looking to market aggressively its products worldwide.

Kalashnikov Concern Estimates Operating Loss of $50M in 2013

MOSCOW, February 7 (RIA Novosti) – The operating loss of Russia’s Kalashnikov gun maker last year is estimated at about 1.7 billion rubles ($50 million), the company’s newly appointed general director said Friday.

Alexei Krivoruchko

“According to preliminary estimates, the losses incurred in 2013 will reach 1.7 billion rubles,” Alexei Krivoruchko said.

Krivoruchko, who had earlier acquired a 49 percent stake in Kalashikov Concern, took over the helm of the famed small arms maker on January 31.

A savvy businessman and a skillful manager, Krivoruchko faces a daunting task of making Kalashnikov a profitable and efficient company to become a major supplier of Russian weaponry abroad by 2020.

He told reporters Friday that the company would focus on reducing production costs and increasing sales through streamlining the manufacturing process and aggressive global marketing.

He also said Kalashnikov Concern, which was formed last year through the merger of the Izhmash arms factory and several other defense plants, currently has a “dismal” worker-to-management ratio that affects the efficiency of its operation.

Kalashnikov Concern Estimates Operating Loss of $50M in 2013

“We currently have only 26 percent of the personnel actively involved in production, it is very wrong, the management bloat is overwhelming,” Krivoruchko said.

According to Krivoruchko, the company has already started taking concrete steps to tackle the current crisis.

Kalashnikov signed in January a contract with a US firm to sell up to 200,000 firearms annually to customers in the United States and Canada. The company is also in talks with several Indian firms to set up joint ventures to produce small arms.

As part of its promotional strategy, Kalashikov could hire Hollywood tough guy and martial arts guru Steven Seagal as an international ambassador for Kalashnikov-made weaponry, according to the state-owned Rostech corporation, which owns a 51 percent stake in Kalashnikov Concern.