Larsen & Toubro (L&T) and European weapon system specialist MBDA have announced the formation of an Indian based Joint Venture to pursue opportunities for the development and supply of missiles systems to meet the growing potential requirements of the Indian armed forces. To begin with, the JV will look to develop and supply fifth generation anti-tank guided missiles, anti-ship missiles for coastal defense and high-speed target drones.
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[ismember]MBDA has been involved in several Indian missile programs in the past, including the technology transfer of Milan missiles locally produced in India, and the supply of Mica air/air missiles for the Mirage 2000 and the new Rafale. MBDA is also cooperating with the Indian Defense Research and Development Organization (DRDO) in the development of short-range surface-to-air missile systems.
By joining forces with L&T, an engineering conglomerate and private sector defense major the European company is aligning its business strategy to meet the demand for a growing workshare of major projects involving foreign companies. 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 Defense Procurement.
The Joint Venture Company, named “L&T MBDA Missile Systems Ltd”, will operate from a dedicated work center, 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 decision to formalize this partnership, a key milestone for both L&T and MBDA in their long-term relationship, was made after extensive evaluation and identifying the strong synergy between the two organizations. L&T and MBDA have collaborated and partnered on co-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.[/ismember]