Larsen and Toubro Ltd (L&T) and EADS NV will shortly approach the Foreign Investment Promotion Board (FIPB), for setting up a JV for engineering and research activities in the defence sector.
This JV company will then make downstream investments for manufacturing of defence equipment such as radars, avionics and electronic warfare equipment in India to cater to the domestic and overseas markets. EADS, a European A & D firm, will hold nearly 24% stake in the JV and the balance will be with L&T. The ownership and control of the JV company will be with L&T.
The JV will conform with India’s offset policy in defence, which encourages domestic manufacturing of defence equipment.
EADS and L&T state that the benefits of the JV include a large investment, with initial job creation of nearly 400 and FE savings. Access to EADS’ technology will be another benefit that will occur.
EADS had reported revenue of €43.3 billion (about Rs3.4 trillion) in 2008.
Brigadier (Retired) Sukhwindar Singh
http://www.svipja.com/
Credit: Nayantara Rai / CNBC-TV18
This JV company will then make downstream investments for manufacturing of defence equipment such as radars, avionics and electronic warfare equipment in India to cater to the domestic and overseas markets. EADS, a European A & D firm, will hold nearly 24% stake in the JV and the balance will be with L&T. The ownership and control of the JV company will be with L&T.
The JV will conform with India’s offset policy in defence, which encourages domestic manufacturing of defence equipment.
EADS and L&T state that the benefits of the JV include a large investment, with initial job creation of nearly 400 and FE savings. Access to EADS’ technology will be another benefit that will occur.
EADS had reported revenue of €43.3 billion (about Rs3.4 trillion) in 2008.
Brigadier (Retired) Sukhwindar Singh
http://www.svipja.com/
Credit: Nayantara Rai / CNBC-TV18
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