Image: Shailesh Andrade / Reuters (Image for illustrative purposes only)
Engineering conglomerate Larsen & Toubro (L&T) and MBDA, a multinational leader in missile systems, have announced an alliance to develop and supply missiles and missile systems to meet the growing demand of India’s armed forces.
The venture, called L&T MBDA Missile Systems Ltd, will include pyrotechnical integration and final checkout facilities. It is likely to be incorporated in the first half of 2017 after necessary approvals. L&T will own 51 percent and MBDA, the remaining 49 percent.
To start with, the joint venture will look to develop and supply fifth generation Anti-Tank Guided Missiles (ATGM5s), missiles for Coastal Batteries and high speed target drones.
Both firms have partnered on co-development and production of major subsystems and sophisticated weapon systems such as MICA missile launchers and airframe segments, including control actuation units for India’s defence ministry orders.
MBDA’s chief executive officer Antoine Bouvier said: “Our business strategy in India has always focussed on forming partnerships…. not just with the armed forces but also with the Indian industry. This has seen us involved in the transfer of technology and the production of products and components with the state-owned defence public sector undertakings.
The Larsen & Toubro stock recovered from an intraday low of Rs 1,482.6 at the BSE to close at Rs 1,497.25, still down by 0.26 percent over its previous close.
In 2016, L&T was one of the five Indian companies to have been ranked among Forbes’s list of ‘The World’s Most Innovative Companies’.