Bharat Electronics Ltd (BEL) and France’s Safran have agreed to establish a joint venture for the local production of HAMMER precision-guided munitions in India. The partnership, formalised following discussions led by Prime Ministers Narendra Modi and Emmanuel Macron, aims to reinforce India’s domestic defence capabilities and align with the country’s drive to lessen reliance on imported advanced weaponry. Both firms will hold equal equity in the venture, which is expected to facilitate significant technology transfers and support self-reliance within the sector.
The joint venture will be set up with an initial authorised share capital of Rs 1 lakh, consisting of 1,000 equity shares valued at Rs 100 each. Depending on future business requirements, this capital may be increased to Rs 10 crore or more. The shareholding will be split equally, with BEL and Safran maintaining 50 per cent equity each. Such a structure is intended to ensure balanced decision-making and shared responsibility between the partners.
HAMMER is a combat-proven, precision-guided weapon system recognised for its high accuracy and modular design, allowing it to be integrated across multiple platforms, including the Rafale and the light combat aircraft Tejas.
JV setup
Governance of the newly formed company will involve a four-member board, with each partner nominating two directors. The Chairman, appointed by mutual agreement of the nominees, will not have a casting vote, ensuring that all major decisions require consensus between BEL and Safran. This approach is expected to support collaborative management and shared strategic direction.
The registered office and principal business location for the joint venture will be based in Pune or at another site mutually agreed upon by both parties. The company will be incorporated as a private limited entity under the Companies Act, 2013. This provides a framework for operational flexibility as well as compliance with Indian legal requirements.
Atmanirbhar Bharat initiative
A key feature of the partnership is the establishment of a “Center of Excellence”, which will operate as a technology and teaming partner for the project. This centre is designed to foster innovation and facilitate advanced manufacturing processes within India, in line with the government’s Atmanirbhar Bharat initiative to encourage domestic production in critical sectors.
Earlier on February 16, in a stock exchange filing, BEL said its board has approved the signing of a Joint Venture Agreement (JVA) with Safran Electronics and Defence (SED), France, for the HAMMER weapon system project, with the operationalisation of the agreement being subject to regulatory and administrative clearances in India and France. The approval marks a significant step towards implementing the bilateral commitments made during the Modi-Macron talks.
The local manufacturing of HAMMER (Highly Agile Modular Munition Extended Range) air-to-ground weapon systems is anticipated to reduce India’s dependence on imported precision weapons. By scaling up indigenous defence production, the joint venture intends to strengthen India’s capabilities in producing advanced munitions and contribute to the country’s overall industrial growth.
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