Larsen & Toubro and the Franco-German A & D Group, EADS, are working on a new equity structure to revive their proposed JV which was earlier rejected by the Govt. on the ground that it would exceed the 26% cap on FDI in the Defence Sector.
L&T will now hold a 74% stake in the venture, leaving the remaining 26% for EADS. The JV intends to make electronic warfare systems, radar instruments and avionics.
The proposed JV is expected to earn Rs 2,500 Crore in revenues over the next five years. L&T, a supplier of critical systems to India’s defence forces, currently earns revenues of around Rs 400 Crore from this business.
The JV will have a manufacturing facility at Talegaon in Maharashtra. L&T is investing Rs 100 Crore in the Talegaon unit.
Brigadier(Retired) Sukhwindar Singh
www.IndianDefenceIndustry.com
(An e-Hub for India Defence & Aerospace Ecosystem)
Credit: USIBC.
L&T will now hold a 74% stake in the venture, leaving the remaining 26% for EADS. The JV intends to make electronic warfare systems, radar instruments and avionics.
The proposed JV is expected to earn Rs 2,500 Crore in revenues over the next five years. L&T, a supplier of critical systems to India’s defence forces, currently earns revenues of around Rs 400 Crore from this business.
The JV will have a manufacturing facility at Talegaon in Maharashtra. L&T is investing Rs 100 Crore in the Talegaon unit.
Brigadier(Retired) Sukhwindar Singh
www.IndianDefenceIndustry.com
(An e-Hub for India Defence & Aerospace Ecosystem)
Credit: USIBC.
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