HAMMER deal: BEL, Safran to set up India JV post Modi-Macron talks

The partnership will enable local production of the HAMMER (Highly Agile Modular Munition Extended Range) air-to-ground weapon system, a move aimed at strengthening India’s domestic defence manufacturing base. The agreement marks a key outcome of the bilateral discussions, which focused on expanding strategic and industrial cooperation.

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The localisation of HAMMER production is expected to reduce import dependence for advanced precision weapons and support India’s push to scale up indigenous defence capabilities. The initiative aligns with the government’s Atmanirbhar Bharat programme, which seeks to promote domestic manufacturing and technology partnerships in critical sectors.

HAMMER, officially designated AASM from the French Armement Air-Sol Modulaire, is a precision-guided air-to-ground stand-off weapon developed to bridge the gap between conventional bombs and cruise missiles.

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Eralier on February 16, in a stock exchange filing, BEL said its board has approved the signing of a Joint Venture Agreement (JVA) with Safran Electronics and Defence (SED), France, for the HAMMER weapon system project, with the operationalisation of the agreement beig subject to regulatory and administrative clearances in India and France.
Also Read: Tata-Airbus aircraft- Modi, Macron unveil the final assembly line of H-125 helicopters in KarnatakaAs part of the agreement, the two companies will incorporate a private limited company under the Companies Act, 2013. The registered office and principal place of business will be located in Pune or any other mutually agreed location. The joint venture will operate a “Center of Excellence” that will act as a technology and teaming partner.

The shareholding will be equally divided, with BEL and Safran each holding 50 per cent equity. The company will be incorporated with an initial authorised share capital of Rs 1 lakh, comprising 1,000 equity shares of Rs 100 each. This may be increased up to Rs 10 crore or more, depending on business requirements.

The governance structure will include a four-member board, with two directors nominated by each partner. The Chairman will be appointed by the nominees but will not have a casting vote.