Indian conglomerate Larsen & Toubro (L&T) and European missile specialist MBDA have set up a joint venture (JV) to develop and supply missiles and missile systems to meet the growing potential requirements of the Indian armed forces.
The Joint Venture Company, named "L&T MBDA Missile Systems Ltd", will operate from a dedicated work centre, which will include pyrotechnical integration and final checkout facilities. It is expected to be incorporated in the first half of 2017 after necessary approvals.
L&T will own 51% of the Company and MBDA, 49%, fully complying with India’s Foreign Direct Investment (FDI) policy norms. The JV will be registered in India and conduct business as an Indian Company, subject to Indian laws. The JV would focus on business opportunities in the Missiles and Missile Systems domain and target prospects under the Buy (Indian – IDDM), Buy (Indian) and Buy & Make (Indian) categories of Defence Procurement.
L&T and MBDA have already collaborated on development and production of major subsystems involving complex technologies and sophisticated weapon systems such as Mica missile launchers and airframe segments including control actuation units for Indian MoD orders.
Both JV partners have a proven track record as suppliers to the Indian armed forces - providing critical weapon systems and defence solutions across land, sea and air domains. To begin with, the JV Company will look to develop and supply fifth generation Anti-Tank Guided Missiles (ATGM5s), missiles for Coastal Batteries and high speed target drones.
MBDA CEO Antoine Bouvier says the JV is a natural progression of the company’s partnership strategy with state-owned Defence Public Sector Undertakings (DPSUs) and with large companies and SMEs from the Indian private sector.