L&T Forms JV With France’s MBDA for Development of Fifth Generation Systems

New Delhi (Sputnik) — In a bid to create its space in Indian defense market, European missile conglomerate MBDA has set up a joint venture with Indian private defense firm L&T to develop and supply missiles and missile systems to meet the growing potential requirements of the Indian armed forces. After Lockheed Martin and Raython of US, MBDA has become second major missile manufacturers which has decided to set up Indian joint venture to cater demand of anti-tank guided missile for Indian armed forces. In September 2016, Lockheed Martin and Raytheon Company had entered into a deal with India's Tata Power for the co-development and production of Javelin anti-armor missile system.

L&T will own 51% of the Company and MBDA, 49%, fully complying with India's Foreign Direct Investment (FDI) policy norms. L&T MBDA Missile Systems Ltd is expected to be incorporated in the first half of 2017 after necessary approvals. In the beginning, company is expected to receive contract to develop and supply fifth generation Anti-Tank Guided Missiles (ATGM5s), missiles for Coastal Batteries and high speed target drones.

"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. Over this period, we have worked closely with Ministry of Defense, and its different arms in jointly developing and delivering cutting-edge defense solutions," A M Naik, the Group Executive Chairman of L&T said. MBDA is jointly held by AIRBUS Group (37.5%), BAE SYSTEMS (37.5%), and LEONARDO (25%).

India has recently bought few thousands anti-tank guided missiles and critical tank components to augment emergency weapons for Indian military. India is also expected to receive medium range anti-tank guide missile Spike from Israel. In May last year, India had finalized price negotiations for 275 launchers and 5,500 Spike missiles in completed and kit form. Meanwhile, Rafael Advanced Defense Systems has agreed to transfer technology to India to build another 1,500 systems and around 30,000 additional missiles. In future, India's Ministry of Defense may also contract with Indian Missile ventures for the acquisition of few thousands missile system to equip the Indian Army's 359-odd infantry battalions.