Kolkata: Jindal Defence, part of OP Jindal Group has signed a joint venture (JV) agreement with Taurus Armas S.A., of Brazil for manufacturing an array of small arms.
The agreement for a 51:49 JV between the two companies was signed on Tuesday at the 1st Brazil–India Defence Industry Dialogue of the India-Brazil Business Forum (IBBF), organized by the Ministry of External Affairs in association with CII, Assocham, and Ficci.
The forum is part of a business exchange program hosted in honour of the President of Brazil, Jair Bolsonaro’s official visit to India.
The move by Jindal Defence marks its advent into small arms manufacturing in India. It is expected to bolster Indo-Brazil cooperation in the strategic defence sector, an official statement said.
The agreement proposes setting up of a JV company at Hisar (Haryana) with equity participation from Jindal Defence and Taurus Armas S.A, in the equity ratio of 51:49. It will manufacture small arms in India based on the transfer of technology from Taurus to achieve localization of production in accordance with the Defence Procurement Procedures.
The partnership aims to maximise existing domestic opportunities in the small arms manufacturing sector and provide significant support to the ongoing and future modernization plans of the Armed Forces, particularly the Indian Army, the Para-Military, and State Police Forces. Further, this move is in sync with the government’s vision of greater private sector participation in defence hardware manufacturing.
Taurus Armas S.A, Brazil is one of the largest firearms manufacturers in the world, with a wide range of small arms in its portfolio. It exports arms to over 100 countries and caters to requirement of military, law enforcement, and commercial markets.