India's Tata Group in JV with Lockheed - report

[Lankan Ranger]

India's Tata Group in JV with Lockheed - report

The defence and aerospace arm of Indian conglomerate Tata Group has forged a joint venture with Lockheed Martin Corp (LMT.N) to make defence equipment and aircraft parts, the Economic Times reported on Thursday.

Unlisted Tata Advanced Systems has sought the Indian government's approval for the venture in which Lockheed will have a 26 percent stake, while the remaining will be held by the Indian partner, the newspaper said.

Citing the proposal submitted by Tata to the government, it said Lockheed would invest 428 million rupees ($9 million) and Tata would put in 1.22 billion rupees.

India's Tata Group in JV with Lockheed - report | Reuters

 

[SpArK]

Interesting development.. does that mean F-16s made in India sold to Pakistan​

.

 

[SpArK]

Tata Advanced System (TASL) in joint venture with Lockheed
​

NEW DELHI: The Tata group’s defence and aerospace arm, Tata Advanced System (TASL), has forged a joint venture with US-based defence major Lockheed Martin Corporation, makers of the legendary F-16 fighter jet, for manufacture of defence equipment and aircraft parts.

TASL, a wholly-owned subsidiary of Tata Sons, has sought the government’s approval for the joint venture in which Lockheed will have a 26% stake through a subsidiary while the Indian partner will hold the rest.

The new company, Tata Aerostructures Ltd, will design, develop and manufacture aerospace and aerostructure products.

The proposal submitted by TASL to the Foreign Investment Promotion Board, or FIPB, says Lockheed Martin’s wholly-owned subsidiary, Lockheed Martin Aeroframe Corporation (LMAC), will invest Rs 42.82 crore into the proposed venture for the 26% stake.

The Indian partner will bring in Rs 121.87 crore in the venture that is also looking to export advanced technology systems to other countries.



There is an export potential of $200 million (Rs 920 crore) over a period of five years, the Tata group said in its proposal.

Currently, foreign direct investment in defence sector is capped at 26% requiring prior government approval.

TASL’s proposal comes in the backdrop of the government mulling an increase in the FDI limit for the defence sector.

The department of industrial policy & promotion (Dipp), which formulates FDI policy in the country, has recently floated a discussion paper that suggests an increase in FDI in defence to 74% sans any commitment on local procurement.

Indian industry, however, has lobbied for a more conservative increase in overseas investment. Industry bodies CII and Ficci had suggested FDI up to 49%.


Tata Advanced System (TASL) in joint venture with Lockheed-Engineering-Ind'l Goods / Svs-News By Industry-News-The Economic Times

 

[lhuang]

Amazing that they did this, even with only a 26% FDI cap.

 

[SpArK]

double post.

 

[trident2010]

Very nice development. Tata group is leader in commercial area and now they are trying to get more established in defence sectors. I can see within 2 decades companies like TATA , L&T will be like GE and Lockheed martin of India. Keep it up.

 

[Aegis]

 

[SpArK]

Tata Advanced Systems



Tata Advanced Systems (TASL) was set up in 2007 as a vehicle to extend the Tata group's business operations to the national security and defence sector. TASL is a wholly-owned subsidiary of Tata Sons.

The company's objective is to unify competencies and create capabilities across Tata group companies in order to provide integrated solutions and critical technologies in the areas of defence, homeland security, offset business and disaster management.

Areas of business
TASL is a key provider of support in technology sourcing and management, production of defence technology, obsolescence management, project execution and life-cycle support. TASL offers solutions in both the geographical and virtual battle spaces.

The company’s focus areas are:

Homeland security
Network-centric warfare
Aerospace and avionics
Electronic and information warfare
Precision technologies (missiles, seekers and sensors)
Surveillance technologies (unmanned aerial vehicles, radar)
Marine applications
Communications
Disaster recovery and emergency response networks
Survivability solutions
Component and assembly procurements

Location
TASL is located in New Delhi, India.


Tata group | Our businesses | Tata companies | Tata Advanced Systems

 

[Ras]

Amazing that they did this, even with only a 26% FDI cap.

It is a safe bet that it will be at least more than 50% before this government leaves office.

 

[Break the Silence]

what happened to you?????? Is it a joke?????

 

[Aegis]

what happened to you?????? Is it a joke?????

no! i am amazing that what will happened when india will supply parts of f-16 for pakistan...

 

[Break the Silence]

Tatas are undoubtly the best business entity in India and they are making it to the world level.they have redefined the values and ethics in business world..Mr. Ratan Tata, you are great son of India.
Soon we will see tatas as world leader in defence sector.
My best wishes...
Long live tatas ..long live India..

 

[Aegis]

Amazing that they did this, even with only a 26% FDI cap.

yes bcoz only 26% foreign stake allowed in defence sector...

 

[Break the Silence]

no! i am amazing that what will happened when india will supply parts of f-16 for pakistan...

Oh!! think, if a war is going on... and pak needs spare parts then??

 

[Avatar]

This is hardly a 30 million $ JV.
Don't jump around in happiness with this. It's only a small stepping stone. We wont be exporting any major tech for F-16s.