SOURCE: Moneycontrol News
Larsen & Toubro Ltd may sign a pact with Korea’s Hanwha Techwin to supply self-propelled guns to the army under the government’s Make in India programme, an official familiar with the development told Moneycontrol. Speaking at a February 13 press conference, L&T Group Executive Chairman AM Naik had said the company would “soon be getting a Rs. 4,600-crore order for guns”.
The pact between the two companies will be for the self-propelled gun programme of the Indian army for supplying K-9 Vajra-T’ 155-mm/52-calibre howitzers. According to reports last month, L&T has been selected for supplying 100 such guns.
L&T had jointly bid with Samsung Techwin for the gun order. But the MoU is expected to incorporate the Make in India objective. The Hanwha group had acquired Samsung’s stake in Samsung Techwin in November 2014. The guns, offered for supply by L&T and other bidders, went through field trials by the army with L&T coming out as the winner.
L&T has called for a press meet on Friday where an announcement of the memorandum of understanding between the two companies is likely to be announced. A company spokesperson refused to comment on the purpose of the press meet.
Hanwha makes robots, renewable fuel cells, aircraft engines, sophisticated security products for airports, ports and military establishments and weapon systems for aviation and terrestrial purposes.
This would be L&T’s second major defence pact for the Make in India programme in a little over two months. The company had on February 13 announced a 51:49 joint venture with Europe‘s MBDA Missile Systems with an eye on Rs. 10,000 revenues from the defence sector by 2021. The joint venture company – L&T MBDA Missile Systems Ltd – will design, develop, manufacture and supply missile and missile systems to the defence forces.
L&T has had technology relationships with both MBDA and Hanwha for many years.
The engineering giant’s defence business is part of its heavy engineering segment that clocked gross revenues of Rs. 3,323 crore in 2015-16.