Chennai-based Ashok Leyland Defence Systems Ltd (ALDS) has entered into a tie-up with Krauss-Maffei Wegmann (KMW) GmbH and Co. KG, Germany, to cooperate in developing advanced defence systems for Indian defence establishment as well as other defence forces worldwide.
A memorandum of understanding (MoU) has been signed between the companies during the International Defence Exhibition in Abu Dhabi, which includes development of artillery systems, combat systems, armoured wheeled vehicles, recovery vehicles, bridge-laying systems and other similar products.
ALDS is a newly formed arm of Ashok Leyland, the flagship company of Hinduja group, in which it owns 26 per cent of equity share.
V Sumantran, chairman, ALDS, said, "This strategic partnership seeks to harness the formidable skills of both companies, namely, the technological bandwidth of KMW and our approach to innovations aimed at cost advantage. For ALDS, this brings a new range of product opportunities with which we hope to fulfil India's growing defence needs, and over time to address select overseas markets."
The German firm would provide technology on which a certain amount of customisation would be done and manufactured by ALDS in its existing facility. The details on developing the vehicles and manufacturing are yet be finalised, according to a company source.
"This partnership with ALDS is a further step in KMW's strategy to internationalise its business. Along with ALDS, we are now able to jointly develop future Indian Defence solutions based on our proven and worldwide leading technologies," said Frank Haun, CEO and President, KMW, in a statement.