M777 Deal will Benefit 40 Indian Defence Firms

[Donald Trump]

Thursday, February 18, 2016

The intended Foreign Military Sale between the US and India will also bring into play defence offset rules under Make in India, which BAE Systems will have to abide with.

Around 40 Indian defence companies stand to gain with the M777 offset programme, focussed on localised defence production, and which will be worth 30 per cent of the agreed value of the contract. BAE Systems has been preparing a wide ranging offset package.

“We have an ongoing conversation with Indian companies,” said a company spokesperson, adding: “As part of the offset programme, we have included a range of suppliers.”

Stating that the company was asked to submit an offset plan “which has references to who BAE will partner with” the company said it is working on bringing several Indian partners on board to support its anticipated contract for the M777 artillery guns.

Among the marquee Indian names that BAE Systems has held talks with are corporates like L&T, Punj Lloyd, Ordnance Factory Board, Tata Power, Kalyani Group, Mahindra Group and others. Sources said the emphasis would be on State-owned defence public sector undertakings and medium, small, and micro enterprises in the defence arena.

The spokesperson confirmed that the partnerships would facilitate the production of a variety of BAE Systems’ defence products in India.

The deal is set to involve technology transfer to the Indian partner, as well as “ensure capability in technical skills, along with integration.”

Sources indicated that the proposed deal is expected to enable BAE Systems to make a long-term investment in India, apart from its $200-million offset investment.

With BAE Systems agreeing to shift the main production unit of the howitzer to India, its existing M777 facility is located at Hattiesburg, Mississippi, US, where around 70 per cent of the howitzer’s assembly is completed, the new facility in India is slated to be its main hub to undertake global orders.

Local Supply Chain

The tie-up with Mahindra and other Indian partners is set to help the company develop an Indian supply chain that could be used for the British multinational’s air, land and sea programmes. The Mahindra deal will also begin the process of indigenous manufacture of modern artillery in India.

The Ministry of Defence had approved the procurement of the M777s in May last year, along with Selex Laser Inertial Artillery Pointing Systems (LINAPS).

The guns are to be operated by the Indian Army’s 17 Mountain Strike Corps.

‘M777 deal will benefit 40 Indian defence firms’ | Business Line

Things have started to move - finally!

 

[Abingdonboy]

Thursday, February 18, 2016

The intended Foreign Military Sale between the US and India will also bring into play defence offset rules under Make in India, which BAE Systems will have to abide with.

Around 40 Indian defence companies stand to gain with the M777 offset programme, focussed on localised defence production, and which will be worth 30 per cent of the agreed value of the contract. BAE Systems has been preparing a wide ranging offset package.

“We have an ongoing conversation with Indian companies,” said a company spokesperson, adding: “As part of the offset programme, we have included a range of suppliers.”

Stating that the company was asked to submit an offset plan “which has references to who BAE will partner with” the company said it is working on bringing several Indian partners on board to support its anticipated contract for the M777 artillery guns.

Among the marquee Indian names that BAE Systems has held talks with are corporates like L&T, Punj Lloyd, Ordnance Factory Board, Tata Power, Kalyani Group, Mahindra Group and others. Sources said the emphasis would be on State-owned defence public sector undertakings and medium, small, and micro enterprises in the defence arena.

The spokesperson confirmed that the partnerships would facilitate the production of a variety of BAE Systems’ defence products in India.

The deal is set to involve technology transfer to the Indian partner, as well as “ensure capability in technical skills, along with integration.”

Sources indicated that the proposed deal is expected to enable BAE Systems to make a long-term investment in India, apart from its $200-million offset investment.

With BAE Systems agreeing to shift the main production unit of the howitzer to India, its existing M777 facility is located at Hattiesburg, Mississippi, US, where around 70 per cent of the howitzer’s assembly is completed, the new facility in India is slated to be its main hub to undertake global orders.

Local Supply Chain

The tie-up with Mahindra and other Indian partners is set to help the company develop an Indian supply chain that could be used for the British multinational’s air, land and sea programmes. The Mahindra deal will also begin the process of indigenous manufacture of modern artillery in India.

The Ministry of Defence had approved the procurement of the M777s in May last year, along with Selex Laser Inertial Artillery Pointing Systems (LINAPS).

The guns are to be operated by the Indian Army’s 17 Mountain Strike Corps.

‘M777 deal will benefit 40 Indian defence firms’ | Business Line

Things have started to move - finally!

Credit where credit is due- the GoI have done exactly what I would have liked to have seen done- a larger order for guns (645), lndian private entity produciton line that will also service any future export orders as it will be the sole (operational) M777 production line in the world.

2 M777s are expected to be delivered to the IA later this year to fast track the induction process (they will be used for the army's range calibration purposes).


@anant_s @Levina @Water Car Engineer @Khafee @MilSpec @nair @AUSTERLITZ @Echo_419 @Oscar @Koovie @acetophenol @Parul @Guynextdoor2 @mkb95 @Ankit Kumar @knight11 @Dandpatta @danish_vij @ranjeet @Star Wars @hinduguy @kbd-raaf @Roybot @IndoCarib @indoguy @scorpionx @Vauban @waz @Mirza Jatt @BDforever @cerberus @hellfire @Nilgiri @WAJsal @sathya @ni8mare @SrNair @The DJANGO @The_Sidewinder @Unknowncommando @hkdas



@PARIKRAMA I wonder if this model can be repeated for the C-17s? (only partly joking)

 

[AUSTERLITZ]

Credit where credit is due- the GoI have done exactly what I would have liked to have seen done- a larger order for guns (645), lndian private entity produciton line that will also service any future export orders as it will be the sole (operational) M777 production line in the world.

2 M777s are expected to be delivered to the IA later this year to fast track the induction process (they will be used for the army's range calibration purposes).


@anant_s @Levina @Water Car Engineer @Khafee @MilSpec @nair @AUSTERLITZ @Echo_419 @Oscar @Koovie @acetophenol @Parul @Guynextdoor2 @mkb95 @Ankit Kumar @knight11 @Dandpatta @danish_vij @ranjeet @Star Wars @hinduguy @kbd-raaf @Roybot @IndoCarib @indoguy @scorpionx @Vauban @waz @Mirza Jatt @BDforever @cerberus @hellfire @Nilgiri @WAJsal @sathya @ni8mare @SrNair @The DJANGO @The_Sidewinder @Unknowncommando @hkdas



@PARIKRAMA I wonder if this model can be repeated for the C-17s? (only partly joking)

I agree this has been a forward step .My biggest irritation is why we can't work out something on new assault rifles after such huge delays,forget the hopeless rafale delays.

 

[Echo_419]

Credit where credit is due- the GoI have done exactly what I would have liked to have seen done- a larger order for guns (645), lndian private entity produciton line that will also service any future export orders as it will be the sole (operational) M777 production line in the world.

2 M777s are expected to be delivered to the IA later this year to fast track the induction process (they will be used for the army's range calibration purposes).


@anant_s @Levina @Water Car Engineer @Khafee @MilSpec @nair @AUSTERLITZ @Echo_419 @Oscar @Koovie @acetophenol @Parul @Guynextdoor2 @mkb95 @Ankit Kumar @knight11 @Dandpatta @danish_vij @ranjeet @Star Wars @hinduguy @kbd-raaf @Roybot @IndoCarib @indoguy @scorpionx @Vauban @waz @Mirza Jatt @BDforever @cerberus @hellfire @Nilgiri @WAJsal @sathya @ni8mare @SrNair @The DJANGO @The_Sidewinder @Unknowncommando @hkdas



@PARIKRAMA I wonder if this model can be repeated for the C-17s? (only partly joking)

All that is now left is more C-17s or maybe the A-400

 

[Abingdonboy]

I agree this has been a forward step .My biggest irritation is why we can't work out something on new assault rifles after such huge delays,forget the hopeless rafale delays.

The assualt rifle debacle was a perfect example of the mess the Indian military's procurement system is in- unrealistic and ill-defined qualitative requirements from the user, allegations of wrong-doing by losing parties, indecsion in the MoD and an eventual invalidation of the entire procurement.

That said, those 60-100,000 rifles would only have gone to specialist units (not SFs but units like pathfinders, combat engineers, airborne infantry, RR etc). I'm more interested in the DRDO's MCIWS that will replace the INSAS as the standard issue rifle for the entire Indian Army (and maybe the entire Indian military as a result).

All that is now left is more C-17s or maybe the A-400

The C-17 would be the optimal choice considering it is already in service, is a proven entity (even within the IAF), and is what the IAF wanted more of orginally. Sadly, I just can't see it being economically viable to shift the C-17 production line to India for, at most, 20-25 more C-17s (and maybe 10 export units on top of this). The A400M is the next most logical choice and is what the IAF is exploring- expect some orders by 2019 from them for this type but I don't see local production of the A400M in India.

@PARIKRAMA

 

[IndoCarib]

BAE Systems has partnered with India-based Mahindra on an $885m contract to supply 145 M777 howitzers to the Indian army.

BAE, Mahindra join hands for M777 Howitzer unit | The Indian Express