A M Naik, the Group Executive Chairman of L&T commented: “We have been trusted partners to DRDO and the Indian Navy, delivering complete weapon systems and platforms, command control and sensor systems, designed, developed and manufactured in India for over three decades.
He added, “Over this period, we have worked closely with Ministry of Defence, and its different arms in jointly developing and delivering cutting-edge defence solutions.”
This joint venture will be called ‘L&T MBDA Missile Systems Ltd’, where L&T will own 51% stake and remaining 49% will belong to MBDA.
The JV will be registered in India and conduct business as an Indian Company, subject to Indian laws. It will also 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.
Antoine Bouvier, Chief Executive Officer, MBDA said, "This has seen us involved in the transfer of technology and the production of products and components with the state-owned DPSUs (Defence Public Sector Undertakings) and also with the establishment of very close partnerships with the Indian private sector including large companies and SMEs. The setting up of this JV is a natural progression of our partnership strategy. With L&T, I am convinced that we have found the ideal Indian partner."
Further, the JV will also look to develop and supply fifth generation Anti-Tank Guided Missiles (ATGM5s), missiles for Coastal Batteries and high speed target drones.
This would not be first time where L&T and MBDA have collaborated. Both the companies together have 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.
The JV is expected to be incorporated in first half of 2017 after necessary approvals.