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L&T, Cassidian form joint venture

L&T, Cassidian form joint venture
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First Published: Fri, Feb 11 2011. 08 09 PM IST
Updated: Fri, Feb 11 2011. 08 09 PM IST
New Delhi: Germany-based defence manufacturer, Cassidian, and Indian engineering conglomerate Larsen & Toubro (L&T), have joined forces to manufacture, design, engineer, distribute and market products for military applications such as radars, avionics and mobile systems, such as bridges. The companies have received approval for the formation of a joint entity by the Indian authorities. The new entity will support military requirements of Indian and international customers with Indian-produced high tech equipment and assured life-time support.
The manufacturing facilities will be located in Talegaon near Pune and in Bengaluru. L&T will hold a 74% stake in the joint venture whereas Cassidian’s share will be 26%, in keeping with the current foreign direct investment ceiling in the defence sector. Cassidian is a wholly-owned subsidiary of the European defence, electronics & security arm of the European defence and aerospace company, EADS. This tie-up has been announced after Cassidian, the defence, electronics & security arm of the European defence & aerospace company, EADS, inaugurated an engineering centre in Bengaluru this month, which will employ more than 100 Indian engineers in the midterm.
The joint venture will work closely with Cassidian’s new engineering centre in Bengaluru where systems design and engineering activities will be carried out in the fields of electronic warfare, radars and avionics for military application.
M.V. Kotwal, a board member at L&T and the president of the company’s heavy engineering division, said: “In addition to its other businesses, L&T has been a leading company in India for engineering, manufacture and integration of custom made technology-intensive equipment and systems. The coming together of L&T with Cassidian is a major milestone in the area of defence electronics. It will not only serve the Indian armed forces with state-of-the art technology, but also provide a platform for making significant contributions to the global market in high-technology defence equipment.”
Cassidian’s CEO Bernd Wenzler said the company will be supporting global security by the development of product and system solutions for armed forces and civil security worldwide, “We are proud of joining forces with one of India’s biggest technology companies,” he said. “Our joint venture is proof of our commitment to India. Cassidian would like to establish an Indian industrial base for our European technologies with the development of a long term partnership. We are prepared to bring additional capabilities into the JV company after the Indian laws allow an increase of shares up to 49%.”
Recognizing L&T’s growing engineering engagements established with EADS Tier1 suppliers, EADS Group Procurement signed a contract with L&T in January this year. This agreement will also enable L&T to be part of EADS strategic programmes.
Cassidian has been working in a partnership with the Defence Avionics Research Establishment (DARE), a DRDO (Defence Research & Development Organisation) laboratory based in Bengaluru since 2006. it also cooperates with CABS (Centre for AirBorne Systems).
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First Published: Fri, Feb 11 2011. 08 09 PM IST
More Topics: L&T | Cassidian | Defence | India | Europe |