Larsen & Toubro (L&T), India’s multinational engineering conglomerate and private sector defence major, and MBDA, a world leader in missile systems, 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. This step has been taken in recognition of the path-breaking initiatives of the Government of India to target indigenization of the Defence Sector under the Make in India initiative.
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.
The JV Company, named ‘L&T MBDA Missile Systems’, 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. 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.