Bharat Electronics Limited (BEL) has entered into a joint venture agreement with Safran Electronics & Defense (SED) to collaborate on the HAMMER Weapon System, ahead of French President Emmanuel Macron’s visit to India. Prime Minister Narendra Modi will meet President Macron in Mumbai on Tuesday to review progress on the India-France Strategic Partnership and discuss key regional and global issues. The joint venture will be incorporated as a private limited company under the Companies Act, with its registered office and principal place of business in Pune or another mutually agreed location.
Notably, Rajnath Singh, India’s Defence Minister, will co-chair the sixth India–France Annual Defence Dialogue with French Defence Minister Catherine Vautrin in Bengaluru, Karnataka, on February 17. During the dialogue, the two sides are expected to renew a key defence cooperation agreement for another ten years and witness the signing of a memorandum of understanding for a joint venture to manufacture Highly Agile Modular Munition Extended Range (HAMMER) missiles.
The HAMMER precision-guided weapon is designed to carry out accurate long-range strikes on high-value and fortified targets, with an operational reach of nearly 70 kilometres, enabling stand-off engagements and proving particularly effective in complex terrains, including mountainous regions. The system is compatible with advanced combat platforms such as the Dassault Rafale and the HAL Tejas, significantly enhancing their strike capability. Although it was not part of the original Rafale acquisition due to financial considerations, the weapon was subsequently inducted under emergency procurement provisions.
The new company will operate a “Center of Excellence”, serving as a technology and teaming partner for the manufacturing, supply, maintenance, and repair of the Guidance Kit (GK) of the HAMMER system. The primary end users will be the Indian Air Force and the Indian Navy, with potential inclusion of additional users in India as mutually agreed. The joint venture will have an initial authorized share capital of Rs 1,00,000 (1,000 equity shares at Rs 100 each), which may be increased up to Rs 10,00,00,000 depending on requirements. Equity will be equally split between BEL and SED (50:50). The board will comprise four directors—two nominated by BEL and two by SED.
The chairman, appointed by the nominees, will not have a casting vote. The board meeting approving the joint venture was held on Sunday. There are no related party transactions associated with this agreement. This partnership strengthens India’s defense manufacturing capabilities and enhances strategic collaboration with France in advanced military technologies. President Macron will be on an official visit to India from February 17 to 19 at the invitation of Prime Minister Modi. During his visit, he will participate in the AI Impact Summit hosted by India and hold a bilateral summit with the Prime Minister in Mumbai. This will mark Macron’s fourth visit to India and his first to Mumbai.
