India close deal for 100 modified K-9 self-propelled howitzers

[ejaz007]

Industry sources said the SPH deal is likely to be signed during the upcoming financial year, beginning on 1 April, and includes an option for an additional 50 K-9 systems.

Thread title is misleading. The bold part above taken from the news clearly suggests that the deal has not been concluded yet.

 

[Dash]

This is what I found in Jane's

BAE Systems is preparing a wide-ranging offset package - focused on localised defence production - to support its anticipated contract to supply the Indian Army with 145 M777 155 mm/39 calibre lightweight howitzer guns, the company has confirmed to IHS Jane's .
Complying with India's defence offset rules, the M777 offset programme will be worth 30% of the agreed value of the contract, which is expected to be about USD700 million, and will be channelled through industrial accords between BAE Systems and around 40 Indian companies.
A company spokesperson confirmed that these partnerships will facilitate the production in India of a variety of BAE Systems defence products for national and international programmes.
In addition, BAE Systems has offered to transfer its M777 assembly, integration, and test (AIT) facilities from the United States to India. An industry partner to support the provision of AIT activities is expected to be announced in the second half of 2015 with associated costs for the transfer included in the purchase contract.
India's procurement of the M777s, along with Selex Laser Inertial Artillery Pointing Systems (LINAPS), was approved by the Indian Ministry of Defence in May. The purchase will progress through the US Foreign Military Sales (FMS) mechanism, with the guns operated by the Indian Army's 17 Mountain Strike Corps, which is being formed for deployment along the disputed border with China.
"Our approach in the M777 offset proposal has been to tap into our diverse businesses, with their range of requirements to open opportunities for the Indian supply chain across our air, land, and sea programmes both locally and globally," the company said in a statement to IHS Jane's .
"In line with [India's] offset policy, the latest package - of over USD210 million - envisages investing in approximately 40 Indian defence suppliers across the country with an emphasis on the [state-owned] defence public sector undertakings and the medium, small, and micro enterprises sector.
"[This] reflects our commitment to India and confidence in our track record of fulfilling offset commitments around the world. Our offset partners in the offer for M777 will be diverse in both geographical spread and product categories."
Under the AIT package, BAE Systems' selected partner will undertake end-production of the gun system as well as assembly and maintenance, repair, and overhaul. The facility will also undertake similar activities for any export orders of the gun. BAE Systems' existing M777 AIT facility is located at Hattiesburg, Mississippi, where around 70% of the howitzer's assembly is completed.
Following the transfer of the AIT facility to India, however, some key parts of the gun will continue to be produced outside India. IHS Jane's has previously reported, for instance, that the M777 titanium barrel and associated recoil components will be imported from the BAE Systems plant at Barrow-in-Furness in the United Kingdom.

@Abingdonboy , so its still FMS route with offset.

Link

 

[Abingdonboy]

This is what I found in Jane's

BAE Systems is preparing a wide-ranging offset package - focused on localised defence production - to support its anticipated contract to supply the Indian Army with 145 M777 155 mm/39 calibre lightweight howitzer guns, the company has confirmed to IHS Jane's .
Complying with India's defence offset rules, the M777 offset programme will be worth 30% of the agreed value of the contract, which is expected to be about USD700 million, and will be channelled through industrial accords between BAE Systems and around 40 Indian companies.
A company spokesperson confirmed that these partnerships will facilitate the production in India of a variety of BAE Systems defence products for national and international programmes.
In addition, BAE Systems has offered to transfer its M777 assembly, integration, and test (AIT) facilities from the United States to India. An industry partner to support the provision of AIT activities is expected to be announced in the second half of 2015 with associated costs for the transfer included in the purchase contract.
India's procurement of the M777s, along with Selex Laser Inertial Artillery Pointing Systems (LINAPS), was approved by the Indian Ministry of Defence in May. The purchase will progress through the US Foreign Military Sales (FMS) mechanism, with the guns operated by the Indian Army's 17 Mountain Strike Corps, which is being formed for deployment along the disputed border with China.
"Our approach in the M777 offset proposal has been to tap into our diverse businesses, with their range of requirements to open opportunities for the Indian supply chain across our air, land, and sea programmes both locally and globally," the company said in a statement to IHS Jane's .
"In line with [India's] offset policy, the latest package - of over USD210 million - envisages investing in approximately 40 Indian defence suppliers across the country with an emphasis on the [state-owned] defence public sector undertakings and the medium, small, and micro enterprises sector.
"[This] reflects our commitment to India and confidence in our track record of fulfilling offset commitments around the world. Our offset partners in the offer for M777 will be diverse in both geographical spread and product categories."
Under the AIT package, BAE Systems' selected partner will undertake end-production of the gun system as well as assembly and maintenance, repair, and overhaul. The facility will also undertake similar activities for any export orders of the gun. BAE Systems' existing M777 AIT facility is located at Hattiesburg, Mississippi, where around 70% of the howitzer's assembly is completed.
Following the transfer of the AIT facility to India, however, some key parts of the gun will continue to be produced outside India. IHS Jane's has previously reported, for instance, that the M777 titanium barrel and associated recoil components will be imported from the BAE Systems plant at Barrow-in-Furness in the United Kingdom.

@Abingdonboy , so its still FMS route with offset.

Link

This Janes article is from May 2015 and talking purely about the M777 deal in its orginal form (145 M777 100% off the shelf through a FMS), the latest news is quite different:

India to order an additional 500 M777 Guns | Indian Defence News


For such an order (under MII) an FMS wouldn't be appropriate.

 

[Dash]

This Janes article is from May 2015 and talking purely about the M777 deal in its orginal form (145 M777 100% off the shelf through a FMS), the latest news is quite different:

India to order an additional 500 M777 Guns | Indian Defence News


For such an order (under MII) an FMS wouldn't be appropriate.

Even this article says FMS route has been taken... They might have selected the Indian partners as the last date was August if Iam not wrong. And the article from Jane's say that they are emphasizing on defence PSU's that are state owned. So take your pick. but bro, I wont focus much on FMS aspect as MII is getting implemented. I see it clearly.

 

[Archie]

@Water Car Engineer @anant_s @PARIKRAMA any idea who is likely to make the 645 M777s in India?

Most likely Mahindra in partnership with BAE systems
Since they have an agreement on defence manufacturing

 

[PARIKRAMA]

Mahindra ruled out as its JV with BAE is for FICV specific deal. the JV name is Defence Land Systems India. They have not applied for any new addition to their portfolio of products with GOI.

VEM is ruled out as of 2015 it has applied additional licence for only unmanned aerial systems beyond its work already from old times.

Bharat forge is flagship company of Kalyani group - Strong possibility

BF elbit JV is a different company too

this of end 2014 kind of makes it easy.. notice the wording ultra light capacity per year is 80

L&T has not applied for a Light weight howtizer licence as of now.. Its last application for artillery is this .. notice the word field guns in point 2. Also notice lower point of armored vehicles for turrents system indicating k9

Its from Make in India defence site.. so its public data

@Abingdonboy
Looking at this, i am betting on Kalyani group's Bharat Forge getting this deal as per the details uploaded. Only they have got approval for ultra light howitzer meaning they can buy the assembly line and Kalyani group does have backers.. A good example is Baba Kalyani being close to BAE Indian board member Deepak Parekh as fellow businessmen and good friends.. Relationships cant get you business in personal level. But officially they are the only one authorized by GOI for ultra light category

 

[Dash]

Mahindra ruled out as its JV with BAE is for FICV specific deal. the JV name is Defence Land Systems India. They have not applied for any new addition to their portfolio of products with GOI.

VEM is ruled out as of 2015 it has applied additional licence for only unmanned aerial systems beyond its work already from old times.
View attachment 288038


View attachment 288048

View attachment 288049

Bharat forge is flagship company of Kalyani group - Strong possibility

View attachment 288040

BF elbit JV is a different company too

View attachment 288042


this of end 2014 kind of makes it easy.. notice the wording ultra light capacity per year is 80

View attachment 288044

L&T has not applied for a Light weight howtizer licence as of now.. Its last application for artillery is this .. notice the word field guns in point 2. Also notice lower point of armored vehicles for turrents system indicating k9

View attachment 288047

Its from Make in India defence site.. so its public data

@Abingdonboy
Looking at this, i am betting on Kalyani group's Bharat Forge getting this deal as per the details uploaded. Only they have got approval for ultra light howitzer meaning they can buy the assembly line and Kalyani group does have backers.. A good example is Baba Kalyani being close to BAE Indian board member Deepak Parekh as fellow businessmen and good friends.. Relationships cant get you business in personal level. But officially they are the only one authorized by GOI for ultra light category

Interesting...where did you find it?

 

[Rangila]

Indian Army a symbol of courage valour

Must watch!

VEM Technologies makes all these equipments:

 

[PARIKRAMA]

Interesting...where did you find it?

Make in India Defence

Look for list of industrial licences

it was posted here by @Abingdonboy
Manohar Parrikar at the launch ‘Make in India’ portal of Department of Defence Production [VIDEO]

i had posted then in the thread too...