Bengaluru — India’s state-owned defense electronics major Bharat Electronics Limited has approved a 50:50 joint venture with France-based Safran Electronics & Defense to manufacture and support guidance kits for the HAMMER weapon system, marking a significant expansion of Indo-French defense industrial cooperation.
The decision was cleared by BEL’s board at a meeting held on February 15, 2026, and subsequently disclosed to stock exchanges in compliance with regulations set by Securities and Exchange Board of India.
Centre of Excellence Planned in India
Under the agreement, the two companies will incorporate a private limited joint venture under India’s Companies Act, 2013. The new entity will be headquartered in Pune, or another mutually agreed location.
The JV will establish a dedicated Centre of Excellence to serve as a technology and manufacturing hub for the production, supply, maintenance, and repair of guidance kits used in the HAMMER precision strike system. The primary end users are expected to be the Indian Air Force and the Indian Navy, with the possibility of additional domestic customers.
Equal Ownership and Governance
The joint venture will feature equal equity participation, with BEL and Safran each holding a 50 percent stake. Governance provisions include a four-member board—two directors nominated by each partner. The chairman will be appointed by the board nominees and will not have a casting vote.
The initial authorized share capital has been set at ₹100,000 (1,000 equity shares of ₹100 each), with the flexibility to expand up to ₹10 crore as business requirements grow. BEL noted that the transaction does not qualify as a related-party deal.
Boost to Make-in-India Defense Goals
The partnership aligns with India’s broader push to localize advanced defense manufacturing under the “Make in India” initiative and reduce dependence on imports. It also strengthens strategic defense ties between India and France, particularly in high-technology weapon systems.
Operationalization of the joint venture will be subject to regulatory and administrative approvals from authorities in both countries. BEL said the board meeting began at 4:00 p.m. and concluded at 5:15 p.m. on February 15, 2026.