BEL Approves JV with Safran for HAMMER Weapon System

• BEL and Safran Electronics & Defense form a 50:50 JV for the HAMMER Weapon System
• The JV will focus on the manufacturing and maintenance of the Guidance Kit
• Enhances Indo-French defence cooperation and supports Make in India

Bharat Electronics Limited (BEL) operates as a Navratna Defence Public Sector Undertaking (PSU), which the Ministry of Defence controls. The company has signed a Joint Venture Agreement (JVA) with Safran Electronics and Defense (SED) from France to collaborate on the HAMMER Weapon System project.

BEL has formed the BEL Safran JV for the HAMMER weapon system, strengthening defence manufacturing India through a joint venture defence initiative that advances Make in India defence, deepens the aerospace partnership, and boosts military technology India.

The Board meeting, which took place recently, made this decision and stock exchanges received the information according to Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements.

The JVA will establish a Private Limited Company, as per the Companies Act, 2013, with the registered office likely in Pune or another mutually agreed location.

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The joint venture will establish a "Centre of Excellence" which will develop, manufacture, supply, maintain and repair the Guidance Kit (GK) for the HAMMER Weapon System. The Indian Air Force and Indian Navy will be the primary end users, with potential for additional domestic customers.

The equity structure will be equally divided, with 50% ownership for BEL and 50% for Safran Electronics & Defense. The JV’s governance will include a four-member Board, with two directors nominated by each partner. The Chairman will be appointed by the nominees, without a casting vote. The initial authorised capital will be ₹1, 00,000, which may be increased up to ₹10 crore as required.

This partnership enhances Indo-French defence industrial cooperation and supports India’s "Make in India" initiative, focusing on indigenous defence manufacturing and technology transfer. The JV operations will begin after both countries have approved all necessary regulations.