Bharat Electronics and Thales boards approve formation of new joint venture company

[john70]

BANGALORE AUGUST 29, 2012 :
State-owned public sector undertaking Bharat Electronics Ltd (BEL) has entered into a joint venture with French defence major Thales, the Bangalore-based undertaking announced on Wednesday.

Bharat Electronics and Thales boards approve formation of new joint venture company

The boards of both companies have approved the formation of a new joint venture company, subject to statutory approvals, which will focus on design, development, marketing, supply and support of civilian and select defence radars for Indian and global markets, according to a press statement released by BEL.

As mandated by the Foreign Investment Promotion Board (FIPB), Thales will have a 26% stake in the combined entity, the maximum allowable holding interest by a foreign company, with BEL owning 74% of the company's stock.

"The parent companies aim at making the joint venture company a centre of excellence with the ability to offer solutions specifically aimed at meeting the needs of both Indian and export customers," according to the press release.

Thales has had a significant presence in India, and is a major supplier to Dassault's Rafale, which has been shortlisted for the Indian Air Force's $11 billion Medium Multi-Role Combat Aircraft competition (MMRCA), which is currently in its final stages.

Separately, the French defence major is also involved in the Indian Air Force's $2 billion Mirage-2000 fighter upgrade programme.

This is good, :
1. Such an Venture will decrease load on Slow and improperly administered PSUs.
2. Keeping 74% with BEL is also good.
3. Know how and good administration capabilities of these firms will benefit Indian side.

 

[sorcerer]

Thales Ties Up with Reliance Defence to Make Underwater Systems

NEW DELHI: French defence company Thales, which has major business plans in the region besides a significant offsets obligation that will kick in after the signing of the Rafale fighter deal, has tied up with Reliance Defence to manufacture a range of underwater systems in India.

Thales, which is a world leader in underwater systems and a close partner of DCNS, is looking at a range of systems with Reliance Defence, including sonar for surface ships and submarines, mine warfare and mine counter-measure equipment, three persons aware of the matter told ET.
While both Thales and Reliance Defence refused to comment on the developments, sources said that the agreement in place would target a potential market of Rs 10,000 crore with several major programmes of the Indian Navy expected to get under way.

There is also a possibility of a future 51:49 joint venture between Reliance Defence and Thales to bid for potential Indian contracts. The market being targeted includes a Rs 5,000 crore Integrated Anti-Submarine Defence Systems ( IADS) project and a Rs 3,000 crore Hull-Mounted Sonar project.
Several Indian Navy requirements are coming up in the underwater arena, including Towed Array Sonar and Torpedo Decoy Systems and a dipping sonar for the Naval Utility Helicopter and Multi Role Helicopter Programs that are currently being processed.

Reliance Defence, which earlier acquired Pipavav Offshore and Engineering Company (PDOC), has renamed it Reliance Defence and Engineering Ltd (RDEL) to target all maritime programs. Thales is a major partner in two high-value French programmes — the ongoing Scorpene submarine deal, which could have a follow on order for two more boats, and the Rafale fighter, for which it makes most of the avionics.

Besides the naval market, Thales is looking at India as a potential export hub for military projects and has stated that its intention is to double business to 700 million euros in the next five years. The French company, which provides close to 25% of the Rafale fighter, already has a joint venture in India with Samtel for display systems for the Mirage 2000 fighters that are currently undergoing a $ 2.2 billion upgrade.

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