State-run Bharat Electronics Limited (BEL) has approved a 50:50 joint venture with France’s Safran Electronics & Defense to manufacture and maintain guidance kits for the HAMMER precision-guided weapon system in India, marking a key step in expanding domestic capability in high-technology munitions.

The decision was cleared at BEL’s board meeting on February 15, 2026, and disclosed to stock exchanges in accordance with regulatory requirements.

Board Clears 50:50 Indo-French defence venture

The joint venture will be incorporated as a private limited company, with its registered office proposed in Pune or another mutually agreed location. The entity will be equally owned by BEL and Safran, underscoring a balanced partnership structure in both capital and control.

BEL said the transaction does not fall under related-party norms.

Centre of Excellence to anchor local manufacturing

Under the agreement, the new company will establish a Centre of Excellence to act as a technology and manufacturing hub for guidance kits used in the HAMMER (Highly Agile Modular Munition Extended Range) system.

The venture will handle manufacturing, assembly, repair and lifecycle support of the kits. The Indian Air Force and Indian Navy are expected to be the primary end users, with scope to expand supplies to other domestic customers as mutually agreed.

Governance framework mirrors equal control

The JV will have a four-member board comprising two nominees from each partner. The chairman will be appointed by the board but will not have a casting vote. The initial authorised share capital is set at ₹1 lakh, with provisions to scale up to ₹10 crore or more depending on operational needs

Localisation push to reduce import dependence

Beyond production, the partnership aims to progressively increase localisation levels and build in-country maintenance, repair and overhaul capabilities. This is expected to reduce reliance on overseas suppliers and improve turnaround times for India’s armed forces.

The HAMMER system, deployed on advanced fighter aircraft platforms, is known for its modular design and precision strike capability across varied mission profiles. Domestic manufacturing is expected to strengthen availability while aligning with India’s broader push for self-reliance in defence production under the Make in India and Aatmanirbhar Bharat initiatives.