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BEL & Safran Forge JV for HAMMER Weapon System in India

Bharat Electronics Limited has approved a joint venture agreement with France's Safran Electronics and Defence for the HAMMER weapon system project. The JV company will be based in Pune and will establish a Center of Excellence focused on the guidance kit. It will handle manufacturing, supply, maintenance, and repair, primarily for the Indian Air Force and Navy. The partnership features equal 50% shareholding and a four-director board, pending final regulatory approvals from both nations.

Key Points: BEL-Safran JV for HAMMER Weapon System Approved

  • JV for HAMMER weapon system
  • 50-50 equity partnership
  • Center of Excellence in Pune
  • Guidance kit manufacturing & maintenance
2 min read

BEL approves JV with French company Safran for HAMMER Weapon System

Bharat Electronics Ltd partners with France's Safran to manufacture and maintain HAMMER weapon system guidance kits for Indian Air Force & Navy.

"strengthen technological capabilities and support the manufacturing and maintenance of critical components - BEL Statement"

New Delhi, February 16

Bharat Electronics Limited has approved signing a Joint Venture Agreement with Safran Electronics and Defence, France, for the HAMMER weapon system project, according to a stock exchange filing by the company.

The approval was granted during BEL's board meeting held on Sunday. The operationalisation of the joint venture agreement will be subject to regulatory and administrative approvals from authorities in both India and France.

As part of the agreement, BEL and Safran Electronics and Defence will jointly incorporate a private limited company under the Companies Act, 2013. The registered office and principal place of business of the new company will be located in Pune or any other location mutually agreed upon by both partners.

BEL, in an official statement, informed that the joint venture company will operate a "Center of Excellence," which will act as a technology and teaming partner.

The company will focus on the manufacturing, supply, maintenance, and repair of the Guidance Kit (GK) for the HAMMER weapon system. The primary end users of this system will be the Indian Air Force and the Indian Navy. Other end users within India may also be included based on mutual agreement between the two companies.

The shareholding in the joint venture will be equally divided between BEL and Safran Electronics and Defence, with both partners holding 50 per cent equity each.

The company will be incorporated with an initial authorised share capital of Rs 1,00,000 (1 lakh) which will consist of 1,000 equity shares of Rs 100 each.

This authorised share capital may be increased up to Rs 10,00,00,000 (10 crore) or any other amount, depending on business requirements.

The governance structure of the joint venture company will include a board of four directors. BEL will nominate two directors, while Safran Electronics and Defence will nominate the other two directors.

The Chairman of the board will be appointed by the nominees, but the Chairman will not have a casting vote.

BEL also informed that the joint venture aims to strengthen technological capabilities and support the manufacturing and maintenance of critical components of the HAMMER weapon system in India, in line with operational requirements.

- ANI

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Reader Comments

S
Sarah B
While the partnership is promising, I hope the "regulatory approvals" don't cause years of delay. We've seen many such JV announcements get stuck in red tape. Execution speed is key for our forces.
V
Vikram M
HAMMER is a crucial system for our Rafale jets. Manufacturing and maintaining the guidance kits locally will reduce dependence and improve serviceability. A strategic move for IAF and Navy.
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Rohit P
Good step, but the initial authorised capital is just 1 lakh? Seems very small for a defence JV of this scale. Hope they scale up to the 10 crore quickly as needed. The governance with 4 directors and no casting vote for Chairman looks balanced.
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Priya S
Creating a 'Center of Excellence' is the most important part. It's not just about assembly, but building R&D and engineering talent within India. This is how we move from buyer to innovator.
M
Michael C
Stronger India-France defence ties are a positive development for regional stability. Collaborations like this bring advanced technology and create skilled jobs. Win-win.

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