The Tactical Missiles Corporation (TMC) is the leading Russian association of companies for the development and manufacturing of guided missiles, as well as ship- and shore-based tactical missile systems. The corporation was established in line with the national program for the development of the defense-industrial complex for 2002-2006, which encouraged the formation of several large integrated structures in the sector. The goal of the corporation’s formation, as described in a relevant presidential decree, was to preserve and develop Russia’s scientific and manufacturing capacity in the field of missile building, to secure the state’s defense capabilities, to direct resources toward the creation of highly effective guided missiles, and to strengthen Russia’s competitive position on the global arms market.

The corporation now includes 19 companies, including those involved in the final stages of production, like the TMC flagship enterprise (formerly called Zvezda-Strela), Vympel, Raduga, Region, and KBMash. The flagship enterprise specialises in the development and manufacturing of air-to-ground and ship-to-ship missiles, as well as the creation of ship-borne missile systems. Vympel is the leading Russian manufacturer of air-to-air missiles. Raduga is one of the oldest Russian enterprises making air-to-ground missiles for long-range aviation and frontline fighters, as well as deck-launched anti-ship missiles. Region makes guided bombs, anti-ship and anti-submarine missiles, and anti-submarine defense systems. Region is also the creator of a unique anti-ship missile system based on the high-speed underwater Shkval-E missile family. KBMash develops shore-based, mobile missile systems.

The corporation also includes the Zvezda-Strela trading house, which plays the role of an intermediary and also produces energy equipment. The main clients of the Tactical Missiles Corporation are those countries that import Russian fighters of the Su and MiG family. This has traditionally been India and China, as well as Algeria and Venezuela since 2006. TMC also sells its products to Yemen, Malaysia, Indonesia, Vietnam, and several other states. The volume of sales to Vietnam alone to 2010 is estimated at more than USD 300 million. TMC’s competitors on global markets include leading arms makers, such as Boeing, Raytheon, and Lockheed Martin, as well as the European consortium MBDA.

In 2006, the company’s general revenue was 18.7 billion rubles, up 45.1 per cent from the year before (see Table 1). This growth came mainly from exports, which rose 1.5 times over 2006, and which account for the majority of the company’s receipts. TMC’s exports grew in tandem with increased sales of Russian fighter planes abroad. In 2006, Algeria received four MiG-29SMT/UBT fighters, and Venezuela received four Su-30MK2V while kits for the Su-30MKI continued to be transferred to India under an existing contract for the licensed production of 140 aircraft. Large quantities of missiles were sold to China.

In 2007, deliveries of Russian fighters grew even more. A record number (for the post-Soviet period) of Su-30MK was delivered: 49 units, with the result that TMC’s earnings grew by another 50 per cent to reach 28.4 billion rubles. According to company management, the dominance of export sales as a percentage of total revenues will continue for the next five years (until 2012), even though the domestic market has begun to catch up. The National Defense Procurement now accounts for about 20 per cent of earnings for TMC companies. In recent years, civilian production has come to account for about 5 per cent of earnings, and the goal is to raise the figure to 30 per cent. The company offers a wide range of civilian and dual use products, from ordinary household appliances to equipment for nuclear power plants.
The corporation is engaged in the entire life cycle of its products, from the development of design documentation, the making of prototypes, all manner of tests, series production, repair, and modernisation, all the way through to scrapping.

The corporation is licensed under Russian law to engage in independent foreign-trade activities relating to the servicing and repair of defense-related products exported by its constituent companies, including deliveries of spare parts and training materials. The corporation currently offers deliveries of spare parts, tools, and equipment, maintenance services for defense equipment, and training in its use.
The establishment of maintenance and repair centers, possibly in cooperation with companies that export aviation and naval carriers, is currently being considered as a way of improving the quality of after-sales servicing of TMC defense products.