14 February 2017 Current Affairs: Engineering conglomerate Larsen and Turbo (L&T) on 13 February 2017 entered into a joint venture (JV) with European defence major MBDA to develop and produce new-generation tactical missiles. The JV named as L&T MBDA Missile Systems will be registered in India.
Besides being registered in India, the L&T MBDA Missile Systems will conduct business as an Indian Company and in accordance with the subject of Indian laws.
Joint Venture and Highlights : Initially, the two companies will develop and supply the fifth-generation, missiles for coastal defence batteries, anti-tank guided missiles (ATGM5s) and high-speed target drones for the Indian forces.
It will focus on business opportunities in the Missiles and Missile System domain.
The JV’s target prospects under the Buy (Indian – IDDM), Buy and Make (Indian) and Buy (Indian) categories of Defence Procurement
The company will operate from a dedicated work centre that will include pyrotechnical integration and final checkout facilities.
Shareholding in the Joint Venture : Keeping in mind the FDI norms in defence, L&T will own 51 per cent of the JV and the remaining 49 per cent will be held by the European company MBDA.
Larsen & Toubro : Larsen & Toubro is an Indian multinational engaged in technology, construction, engineering, and manufacturing services with USD 16 billion in revenue. It also provides financial services. As of now, the company is functional in over 30 countries across the world.
MBDA : MBDA is a defence major company with a significant presence in five European countries and within the USA. In 2015 MBDA achieved a turnover of 2.9 billion euros with an order book of 15.1 billion euros. With more than 90 armed forces in its customer base, MBDA is a world leader in missiles and missile systems.
In addition to this, MBDA is the only European group that is capable of designing and producing missile and missile systems that match to the present and future operational needs of the three armed forces namely land, air and sea.
MBDA is jointly held by AIRBUS Group (37.5 per cent), BAE SYSTEMS (37.5 per cent) and LEONARDO (25 per cent).