The Board of Directors of Bharat Electronics Limited (BEL) has approved the formation of a Joint Venture (JV) with M/s. Safran Electronics and Defence (SED) of France for ‘Project HAMMER’. This strategic partnership aims to establish a Center of Excellence in Pune for the manufacturing and maintenance of Guidance Kits (GK). The equity split will be 50:50 between BEL and SED, subject to necessary regulatory approvals from both nations.
Strategic Partnership for Defence Technology
Bharat Electronics Limited (BEL) announced that its Board of Directors, following a meeting held on February 15, 2026, has granted approval to sign a definitive Joint Venture Agreement (JVA) with M/s. Safran Electronics and Defence (SED), France. The JVA pertains to Project HAMMER, a significant initiative in defence technology.
Formation and Operational Focus
The JV entity will be incorporated as a Private Limited Company under the Companies Act, 2013, with its registered office likely situated in Pune or another mutually agreed location. The primary goal of this collaboration is to operate a “Center of Excellence”. This Center will function as a Technology cum Teaming Partner for the manufacturing, supply, maintenance, and repair of the Guidance Kit (GK) for the HAMMER Weapon System.
Key Terms of the Agreement
The financial and governance structure of the new entity is clearly defined:
- Shareholding Ratio: The equity will be split evenly, at a 50:50 ratio between BEL and SED.
- Initial Capitalization: The Company will start with an Authorized Share Capital of INR 1,00,000 (1,000 Equity Shares at INR 100 each), with the capacity to increase this up to INR 10,00,00,000 as required.
- Board Composition: The Board will consist of 4 Directors—2 nominated by BEL and 2 nominated by SED.
- Chairmanship: The Chairman will be appointed by the nominees but will not possess a casting vote.
End-User Focus
The primary intended “End Users” for the products manufactured through this JV are the Indian Air Force and the Indian Navy, with provisions for including other end users in India upon mutual agreement.
Regulatory Context
It is important to note that the actual operationalization of the JV agreement and its provisions are contingent upon receiving the necessary regulatory and administrative approvals from both India and France.
Source: BSE
