SOURCE: IDRW.ORG
In a strategic move to expand its global footprint in the defense sector, Bharat Forge Limited, through its wholly owned subsidiary Kalyani Strategic Systems Limited (KSSL), has entered into a joint venture with Spain’s Duma Engineering Group S.L. The agreement, signed on March 27, 2025, aims to establish a new defense technology company in Spain, focusing on the development of advanced technologies, product platforms, and solutions for the defense sectors of India, Europe, and other export markets. This collaboration marks a significant step for Bharat Forge as it seeks to leverage international partnerships to bolster its position in the global defense industry.
Under the terms of the joint venture, KSSL will hold a 90% stake in the new company, while Duma Engineering will own the remaining 10%. The partnership is designed to combine Bharat Forge’s expertise in defense manufacturing with Duma Engineering’s engineering capabilities, creating a synergy that can address the evolving needs of modern defense forces. The new entity will focus on developing cutting-edge defense technologies and product platforms, catering to a wide range of markets, including India and Europe, with an eye on export opportunities in other regions.
Bharat Forge announced the joint venture in a regulatory filing, stating, “We are pleased to inform you that Kalyani Strategic Systems Limited has entered into a joint venture agreement on Thursday, March 27, 2025, with Duma Engineering Group S.L., for the formation of a new joint venture company in Spain.” The company further clarified that Duma Engineering has no existing affiliations with Bharat Forge’s promoters, promoter group, or any of its group companies, ensuring that the partnership is a fresh collaboration aimed at mutual growth.
This joint venture aligns with Bharat Forge’s broader strategy to expand its defense portfolio beyond India, capitalizing on the global demand for advanced defense systems. The company has already made significant strides in the Indian market, particularly with its role in the Advanced Towed Artillery Gun Systems (ATAGS) project, where it secured a major contract from the Ministry of Defence (MoD) to manufacture 60% of the 307 ATAGS units ordered for the Indian Army. The ATAGS, a 155mm/52-calibre howitzer, is a flagship example of India’s push for indigenous defense manufacturing, and Bharat Forge’s involvement has positioned it as a key player in the sector.
The decision to partner with Duma Engineering in Spain reflects a strategic choice to tap into the European defense market, which has seen increased spending in recent years amid geopolitical tensions. European nations are investing heavily in modernizing their armed forces, and the joint venture positions Bharat Forge to offer tailored solutions that meet the specific needs of these markets. Additionally, the collaboration opens doors for export opportunities to other regions, potentially including NATO countries and other allies, where demand for advanced defense technologies is on the rise.
While the joint venture is a promising development, it also raises questions about the challenges of operating in the European defense market, which is dominated by established players like BAE Systems, Thales, and Leonardo. Bharat Forge will need to navigate complex regulatory frameworks, compete with entrenched competitors, and ensure that its technologies meet the stringent standards of European defense forces. Moreover, the partnership with Duma Engineering, a relatively smaller player, may require careful coordination to ensure that both parties can deliver on the ambitious goals of the joint venture.
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